Financial targets

Ambitious financial targets are a fundamental part of Givaudan’s 2025 strategy.

Over the next five years, we will continue to deliver sustainable value creation that benefits all. ‘Committed to Growth, with Purpose’ is our intention to deliver growth partnership with our customers, and ambitious targets are an integral part of this strategy. We aim to achieve organic sales growth of 4-5% on a like-for-like basis and free cash flow of at least 12%, both measured as an average over the five-year period strategy cycle. 
  

Performance commitments

  

Sales growth
4.0-5.0%


2021-2025
 
average like-for-like¹
 
sales growth
Free cash flow
> 12%


2021-2025
 
average free cash flow²
 
as % of sales
Purpose commitments
Purpose linked targets
2021-2025
 
progress towards all
 
published purpose targets

 

  1. Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c)  excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period

  2. Free cash flow (FCF) refers to operating cash flow after net investments, interest paid and lease payments

  

  

Our status on our financial targets

  

Sales target
 
status 2023
5.5%
 
 
2021-2023
average like-for-like¹
sales growth
Free cash flow target
 
status 2023
10.9%
   
 
2021-2023
average free cash flow
as % of sales

 

  1. Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c)  excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period

  

Sustainable value creation

To achieve sustainable value creation and responsible growth, our 2025 strategy is powered by three core growth drivers and four growth enablers, and is supported by our focus on Excellence, Innovation, Simplicity in everything we do.

Growth drivers

Element

Expand the portfolio

Text

Going beyond our current portfolio to further expand into nutrition, food ingredients and beauty.

Extend customer reach

Text

Embracing opportunities in today’s more fragmented customer landscape and driving growth in the local and regional customer segment.

Focussed market strategies

Text

Maximising mature market opportunities at the same time as extending our high growth market leadership.

  

Growth enablers

Element

Creations

Text

Expanding strategic relationships with suppliers, start-ups and partners; enhancing co-creation with customers.

Nature

Text

Further embedding environmental sustainability in our product portfolio and continuing our efforts in sourcing responsibly.

People

Text

Nurturing a diverse and inclusive workforce; evolving workplace trends; caring for employee health and wellbeing.

Communities

Text

Bringing benefits to all communities that work with us, including the communities where we source and operate.

  

Focus on 

Element

Excellence, Innovation & Simplicity – in everything we do

Text

Delivering the highest standards across our value chain, from operational and financial performance to the delivery of a superior customer experience.

  

Read more about our key achievements in 2023

  

Delivered on our 2020 ambitions

Givaudan delivered strong financial performance in 2020 and successfully delivered on all our ambitious targets in relation to the 2016-2020 strategy.

Over this five-year strategic cycle, we successfully capitalised on our position as the industry leader through building closer relationships with our customers and creating long-term value. Despite the challenges of COVID-19 in 2020, we achieved our ambitious five-year financial targets with strong sales growth and free cash flow.

Achievements from 2016 to 2020   

 
Market capitalisation from 16 to CHF 34 billion
 
 
Number of employees from 10,476 to 15,852
 
 
Sales turnover from 4.7 to CHF 6.3 billion
 
 
No. 1 position in fine fragrances with a 2016-2020 sales CAGR of 4.7%
 

  

 
Expanded into new spaces of Active Beauty and alternative proteins, each CHF 100 million in sales
 
 
In health and wellbeing achieved sales of CHF 1 billion and a CAGR of 11.4%
 
 
Average sales growth of +4.0% LFL¹
 
 
Average free cash flow of 12.8% of sales
 

1. Like-for-like: excludes the impact of currency, acquisitions and disposals

22/06/2024