Givaudan’s financial position remained solid at the end of 2021. Net debt at December 2021 was CHF 4,394 million and the leverage ratio was 51%.
Balanced debt profile
In 2018 we received our first credit ratings, and the strong investment confirms the Company’s market leadership position and strong financial profile:
- S&P global ratings: A- credit rating, with a stable outlook
- Moody’s investors Service: Baa1 rating, with stable outlook
Credit rating as per December 2021:
|SA&P short-term rating||A-2|
|S&P long-term rating||A-|
The Group entered into the following debt.
|Issuer||Issue date||Type of debt||Currency of
|Redeemable||Interest rate||Type of
|in millions of Swiss francs|
|Givaudan SA||2011||Public bonds||CHF||150||07-12-2021||2.125%||fixed||
|Givaudan United States, Inc.||2012||Private
|Givaudan SA||2014||Public bonds||CHF||150||19-03-2024||1.750%||150||150|
|Givaudan Finance Europe BV||2020||Public bonds||EUR||500||22-04-2027||1.000%||fixed||516||537|
|Other entities||2020||Other local
|Total short-term and long-term debt as at 31 December b||4,263||4,037|
- There are various covenants contained in these transactions covering conditions on net worth, indebtedness and EBITDA ratio to net interest expense of Givaudan United States, Inc. The Company is and has been in full compliance with the covenants set.
- The fair value of the short-term and long-term debt exceeds its carrying value by approximately 9% as at 31 December 2020.
- The floating interest rate is based on a Libor rate.
The objective of the Group is to maintain the ability to continue as a going concern whilst maximising shareholder value through an optimal balance of debt and equity.
|In millions of Swiss francs||31 December
|Less: cash and cash equivalents||(273)||(411)|
|Total equity attributable to equity holders of the parent||3,929||3,490|
|Remeasurement of post-employment benefit obligations||302||484|
|Equity (as defined for leverage ratio)||4,231||3,974|
|Net debt and equity (as defined for leverage ratio)||8,625||8,014|
|Net debt to EBITDA ratio||2.97||2.89|
|Net debt to Comparable EBITDA ratio||2.92||2.80|