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2014 Nine months sales

Sustained volume growth in all markets
25 Feb 2015 - 09:23 CET

In the first nine months of 2014 Givaudan recorded sales of CHF 3,313 million, an increase of 4.5% on a like-for-like basis and a decline of 0.2% in Swiss francs compared to the previous year. Givaudan continues to demonstrate strong business momentum with a full project pipeline and win rates sustained at a high level.

Mid-term, the overall objective is to grow organically between 4.5% and 5.5% per annum, assuming a market growth of 2-3%, and to continue on the path of market share gains. By delivering on the Company’s five pillar growth strategy – developing markets, health and wellness, market share gains with targeted customers and segments, research and sustainable sourcing – Givaudan expects to outgrow the underlying market and to continue to achieve its industry-leading EBITDA margin while targeting an annual free cash flow of between 14% and 16% of sales by 2015.

Givaudan confirms its intention to return above 60% of the Company’s free cash flow to shareholders while maintaining a medium term leverage ratio target below 25%.

Sales January to September 2014

in million CHF 2014 2013 Change in %
Total Group sales 3,313 3,318 (0.2) 4.5
Fragrance Division 1,587 1,579 0.5 4.8
Flavour Division 1,726 1,739 (0.8) 4.2
Mature markets 1,820 1,839 (1.0) 1.4
Developing markets 1,493 1,479 0.9 8.3

Sales July to September 2014

in million CHF 2014 2013 Change in %
Total Group sales 1,122 1,093 2.6 4.3
Fragrance Division 553 532 3.8 4.8
Flavour Division 569 561 1.5 3.9
* LFL (like-for-like) excludes the impact of currency, acquisitions and disposals


Fragrance Division

Fragrance Division sales were CHF 1,587 million for the first nine months of 2014, an increase of 4.8% on a like-for-like basis and 0.5% in Swiss francs. Sales from Soliance have contributed CHF 8 million since the acquisition on 2 June 2014.

Total sales of Fragrance compounds (Fine Fragrances and Consumer Products combined) increased by 4.2% on a like-for-like basis. In Swiss francs, sales of compounds decreased by 0.9% to CHF 1,386 million from CHF 1,399 million in 2013.

Fine Fragrance sales grew 3.4% on a like-for-like basis driven by strong growth in developing markets, where new business and volume gains in established business favourably impacted performance. These gains more than offset lower sales in Europe and North America where new business was not sufficient to offset erosion.

The Consumer Products business grew by 4.5% on a like-for-like basis against strong prior year comparables. The performance was achieved across all customer groups. Sales in developing countries were the main driver of the growth, while sales performance in mature markets continued to improve. In Latin America, the double-digit sales growth was driven by international customers, spread across the fabric care and the personal care segments. Sales in Asia showed a solid increase with all customer types. The strong performance was sustained by a double-digit increase on the personal wash, deodorant and conditioning categories.

In Europe, Africa and the Middle East, sales growth was supported by all customer types, spread across all product segments. Sales in North America continued to be below last year, due to international customers whereas local and regional customers showed a solid growth against prior year’s double-digit increase.

On a product segment basis, sales growth was sustained by the strong increase on the fabric care and personal care segments, followed by surface care, whilst oral care sales decreased against the strong comparable of last year.

The sales of Fragrance Ingredients increased by 8.9% on a like-for-like basis in the first 9 months. Strong, double-digit growth was recorded on Specialities, while the rest of the product groups showed a solid sales increase. The results in the European, Asian and North American markets were well above the 2013 sales, while Latin America was flat compared to last year. The sales have increased significantly across all customer categories.

Flavour Division

Flavour Division sales were CHF 1,726 million during the first nine months of 2014, an increase of 4.2% on a like-for-like basis and a decrease of 0.8% in Swiss francs driven by a continued good performance in the developing markets.

There was growth across all major segments, with strength in Beverages, Dairy and Snacks. The evolution of Health and Wellness sales continued with improved taste solutions involving sweetness, salt and masking capabilities being provided for our customers. In particular, there were strong double-digit gains in Latin America for this segment.

Asia Pacific
Sales in Asia Pacific rose 5.3% on a like-for-like basis. The developing markets of China, India, Philippines and Vietnam contributed to the sales expansion with gains coming from existing business and new win revenue with strong double-digit gains coming from India in the quarter. Mature markets were down slightly versus prior year with good growth from Australia and Singapore offset by slow economic conditions in Japan. All major segments had positive gains with Beverages, Savoury and Snacks each delivering strong growth.

Europe, Africa and Middle East
Sales grew by 2.9% on a like-for-like basis, driven mainly by the emerging markets of Africa and the Middle East. The mature markets were slightly higher when compared to 2013. Growth across the Beverages, Dairy, Savoury and Snacks segments was partially offset by lower Sweet Goods.

North America
Sales grew 1.9% on a like-for-like basis in North America with growth in Beverages, Dairy, Snacks and Sweet Goods, driven by new wins and volume increase from existing business.

Latin America
Growth in Latin America was 10.4% on a like-for-like basis with strong increases coming from Argentina and Brazil. New wins and existing business expansion contributed to the growth in all segments with exceptional growth coming from Beverages, Dairy and Snacks segments.

For further information please contact:

Peter Wullschleger, Givaudan Media and Investor Relations
Chemin de la Parfumerie 5
1214 Vernier
T +41 22 780 9093
F +41 22 780 9090