Givaudan’s financial position remained solid at the end of 2022. Net debt at December 2022 was CHF 4,530 million and net debt to EBITDA ratio was 3.07.
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 2022:
|SA&P short-term rating||A-2|
|S&P long-term rating||A-|
Details of the Group’s various debt transactions are as follows:
|Issuer||Issue date||Type of debt||Currency of
|Redeemable||Interest rate||Type of
of Swiss francs
of Swiss francs
|Givaudan United States, Inc.||2012||Private
|Givaudan SA||2014||Public bonds||CHF||150||19-03-2024||1.750%||fixed||150||150|
|2022||Revolving credit facility||USD||420||15-06-2027||floating c||391|
|Givaudan Finance Europe BV||2020||Public bonds||EUR||500||22-04-2027||1.000%||fixed||492||516|
|2022||Other local borrowings||EUR||150||Various maturities||1.577%||148|
|Other entities||2021||Other local
|Total short-term and long-term debt as at 31 December b||4,604||4,263|
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 7% as at 31 December 2022.
The floating interest rate is based on alternative reference rates per the IBOR reform.
Net debt to EBITDA ratio
The net debt to EBITDA ratio is calculated as follows:
|In millions of Swiss francs||31 December
|Less: cash and cash equivalents||(475)||(273)|
|Net debt to EBITDA ratio||3.07||2.97|
|Net debt to Comparable EBITDA ratio||3.05||2.92|
The comparative numbers have not been restated for the acquisition price allocation adjustments that were reflected in the mainstatements of the financial report.