Financial targets
Ambitious financial targets are a fundamental part of Givaudan’s 2025 strategy.
Over the next five years, we will continue to deliver sustainable value creation that benefits all. ‘Committed to Growth, with Purpose’ is our intention to deliver growth partnership with our customers, and ambitious targets are an integral part of this strategy. We aim to achieve organic sales growth of 4-5% on a like-for-like basis and free cash flow of at least 12%, both measured as an average over the five-year period strategy cycle.
Performance commitments
2021-2025
average like-for-like¹
sales growth
2021-2025
average free cash flow²
as % of sales
progress towards all
published purpose targets
-
Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c) excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period
-
Free cash flow (FCF) refers to operating cash flow after net investments, interest paid and lease payments
Our status on our financial targets
status 2022
2021-2022
average like-for-like¹
sales growth
status 2022
2021-2022
average free cash flow
as % of sales
-
Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c) excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period
Sustainable value creation
To achieve sustainable value creation and responsible growth, our 2025 strategy is powered by three core growth drivers and four growth enablers, and is supported by our focus on Excellence, Innovation, Simplicity in everything we do.
Growth drivers
Expand the portfolio
Going beyond our current portfolio to further expand into nutrition, food ingredients and beauty.
Extend customer reach
Embracing opportunities in today’s more fragmented customer landscape and driving growth in the local and regional customer segment.
Focussed market strategies
Maximising mature market opportunities at the same time as extending our high growth market leadership.
Growth enablers
Creations
Expanding strategic relationships with suppliers, start-ups and partners; enhancing co-creation with customers.
Nature
Further embedding environmental sustainability in our product portfolio and continuing our efforts in sourcing responsibly.
People
Nurturing a diverse and inclusive workforce; evolving workplace trends; caring for employee health and wellbeing.
Communities
Bringing benefits to all communities that work with us, including the communities where we source and operate.
Focus on
Excellence, Innovation & Simplicity – in everything we do
Delivering the highest standards across our value chain, from operational and financial performance to the delivery of a superior customer experience.
Read more about our key achievements in 2022
Delivered on our 2020 ambitions
Givaudan delivered strong financial performance in 2020 and successfully delivered on all our ambitious targets in relation to the 2016-2020 strategy.
Over this five-year strategic cycle, we successfully capitalised on our position as the industry leader through building closer relationships with our customers and creating long-term value. Despite the challenges of COVID-19 in 2020, we achieved our ambitious five-year financial targets with strong sales growth and free cash flow.
Achievements from 2016 to 2020
from 4.7 to
CHF 6.3 billion
Beauty and alternative
proteins, each
CHF 100 million
in sales
achieved sales of
CHF 1 billion and a
CAGR of 11.4%
sales growth of +4.0% LFL¹
free cash flow of 12.8% of sales
1. Like-for-like: excludes the impact of currency, acquisitions and disposals