Debt information
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
Credit ratings
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:
| Company | Givaudan SA |
| SA&P short-term rating | A-2 |
| S&P long-term rating | A- |
| S&P outlook | stable |
| Moody's rating | Baa1 |
| Moody's outlook | stable |
Debt
The Group entered into the following debt.
| Issuer | Issue date | Type of debt | Currency of principal |
Principal amount in millions |
Redeemable | Interest rate | Type of interest |
2021 | 2020 |
| in millions of Swiss francs | |||||||||
| Givaudan SA | 2011 | Public bonds | CHF | 150 | 07-12-2021 | 2.125% | fixed |
Reimbursed |
150 |
| Givaudan United States, Inc. | 2012 | Private placements a |
USD | 150 | 06-02-2023 | 3.300% | 137 | 132 | |
| 60 | 06-02-2025 | 3.450% | 55 | 53 | |||||
| Givaudan SA | 2014 | Public bonds | CHF | 150 | 19-03-2024 | 1.750% | 150 | 150 | |
| 2016 | 100 | 07-12-2022 | 0.000% | 100 | 100 | ||||
| 200 | 05-12-2031 | 0.625% | 200 | 200 | |||||
| 2017 | Private placements |
EUR | 100 | 20-12-2022 | - | floating c | 104 | 108 | |
| 200 | 20-12-2024 | 1.331% | fixed | 207 | 216 | ||||
| 2018 | Public bonds | CHF | 200 | 09-04-2025 | 0.375% | fixed | 200 | 200 | |
| EUR | 500 | 17-09-2025 | 1.125% | fixed | 516 | 538 | |||
| 800 | 17-09-2030 | 2.000% | 826 | 861 | |||||
| 2020 | CHF | 150 | 10-11-2028 | 0.150% | fixed | 150 | 150 | ||
| 2021 | CHF | 150 | 07-06-2027 | 0.125% | fixed | 150 | - | ||
| CHF | 150 | 07-12-2030 | 0.375% | 150 | - | ||||
| 2021 | Other local Borrowings |
CHF | 20 | 04-01-2022 | floating | 20 | - | ||
| USD | 80 | 05-01-2022 | 72 | - | |||||
| Givaudan Finance Europe BV | 2020 | Public bonds | EUR | 500 | 22-04-2027 | 1.000% | fixed | 516 | 537 |
| 500 | 22-04-2032 | 1.625% | 516 | 538 | |||||
| Other entities | 2020 | Other local Borrowings |
EUR | 2 | Various maturities | 1.180% | fixed | 4 | 6 |
| 2021 | 2 | ||||||||
| 2020 | CNY | 193 | floating | 115 | 97 | ||||
| 607 | |||||||||
| 2021 |
INR |
6,000 | 74 | - | |||||
| 2021 | Other | 1 | 1 | ||||||
| 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.
Capital management
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 2021 |
31 December 2020 |
| Short-term debt | 428 | 206 |
| Long-term debt | 4,239 | 4,245 |
| Less: cash and cash equivalents | (273) | (411) |
| Net debt | 4,394 | 4,040 |
| 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 |
| Leverage ratio | 51% | 50% |
| EBITDA | 1,482 | 1,397 |
| Net debt to EBITDA ratio | 2.97 | 2.89 |
| Comparable EBITDA | 1,504 | 1,442 |
| Net debt to Comparable EBITDA ratio | 2.92 | 2.80 |