Givaudan results boosted by developing markets and flavours

Givaudan has posted healthy growth in both revenues and profit on the back of gains in fragrances, developing markets, counterbalanced by negative currency translations.

The Switzerland-based fragrance and flavours players said that group sales for 2014 were up 3.7% on a like-for-like basis to CHF4.4bn (Euro4.2bn), while this figure represented an increase of 0.8% in Swiss Francs.

This performance was mainly driven by an increase of 7.0% in sales from developing markets, whereas mature markets grew by 1.1%.

Fragrances drive gains

Like last year, the biggest gains were seen in the company’s fragrance division, where sales were up by 3.6% on a like-for-like basis to CHF2.1bn , which represented an increase of 1.2% in Swiss Francs.

Breaking the fragrance performance down, sales of fragrance compounds, which accounts for both fine fragrances and consumer products combines, increased by 3.2% on a like-for-like basis to CHF1.84bn,a figure that was fractionally down in Swiss Francs.

Fine fragrance sales were up 2.5% on a like-for-like basis, whereas consumer product sales were up 3.3%. Sales of fragrance and cosmetics ingredients increased by 7.4% on a like-for-like basis.

Flavours hit harder by currency

Similar gains were seen in the flavours side of the business, with like-for-like sales up 3.7% to CHF2.3bn, but the flavours markets were harder hit by currency translations, which meant that the gain was only 0.4% in Swiss Francs.

Both EBITDA and net income were driven by operational improvements, with EBITDA increasing by 8.5% to CHF1.05bn and net income increasing 14.9% to CHF563m.

The company said that the increased bottom line also translated into a stronger financial position, with net debt as of December 2014 standing at CHF795m, compared to CHF816m for the previous year.