engage your senses

Performance highlights

We continued through 2018 to maintain good business momentum. With Group full year sales of CHF 5,527 million – an increase of 5.6% on a like-for-like basis and 9.4% in Swiss francs when compared to 2017 – and free cash flow of 12.7% of sales, both are in line with the average financial targets we set for 2020.

“Our strong performance in 2018 demonstrates our continued ability to deliver on our short term objectives, whilst at the same time investing for the long term future success of our business. I am very pleased with the results we have achieved in 2018 and with the significant progress that we have made towards our strategic objectives under the 2020 strategy.”

Gilles Andrier, Chief Executive Officer

5
3
2
Financial performance
Value added
Innovation
Employees and safety
Global footprint

 

Key figures

For the twelve months ended 31 December, in million CHF except per share data

 

2018

 

2017

Group Sales

5,527

5,051

Fragrance sales

2,525

2,343

Flavour sales

3,002

2,708

Gross profit

2,329

2,250

as % of sales

42.1%

44.5%

EBITDA 1

1,145

1,089

as % of sales

20.7%

21.6%

Operating income

883

869

as % of sales

16.0%

17.2%

Income attributable to equity holders of the parent

663

720

as % of sales

12.0%

14.2%

Earnings per share − basic (CHF)

71.92

78.18

Operating cash flow

916

861

as % of sales

16.6%

17.0%

Free cash flow

703

594

as % of sales

12.7%

11.8%

1
EBITDA: Earnings Before Interest (and other financial income (expense), net), Tax, Depreciation and Amortisation. This corresponds to operating income before depreciation, amortisation and impairment of long-lived assets.

Sales by division
 

Fragrance Division

 

Flavour Division

Fragrance Division sales   Flavour Division sales

 

Direct economic value generated and distributed

For the year ended 31 December, in millions of Swiss francs

2018

2017

% change

Revenues

5,590

5,093

9.8%

Operating costs

(3,408)

(3,073)

10.9%

Payments to governments

(131)

(79)

65.8%

Payments to providers of capital

(589)

(557)

5.7%

Employee wages and benefits

(1,289)

(1,141)

13.0%

Economic value retained

173

243

(28.8%)

 

Innovation

 

2018

2017

R&D spend

CHF 477 million

CHF 424 million

- As a percentage of sales

8.61%

8.39%

Number of employees working in science & technology

495

481

 

Employees and safety

 

2018

2017

Total full time employees 1

13,598

11,170

Total headcount 2

11,725

11,313

Fatalities

0

0

Number of LTIs 3

24

32

LTI rate

0.25

0.33

Lost day rate

6.61

6.73

Number of hours worked safety

19.5 million

19.2 million

1
Defined as the equivalent full time employee and includes acquisitions. In 2017 employees from Activ International are included. In 2018 the number includes employees from Activ International, Vika B.V., Centroflora Nutra, Expressions Parfumées and Naturex.
2
Defined as Givaudan employees, internal temporary employees and employees from Activ  International. All other acquisitions excluded
3
LTI = Lost Time Injury

 

Our global footprint in 2018

Givaudan's global footprint