2023 First quarter sales

Solid start to the year

13 Apr 2023 · 07:00 CEST

Ad hoc announcement pursuant to article 53 LR.

“Our solid Q1 sales once again demonstrate the importance of the balance that Givaudan has across the different business segments, geographies and client groups. We have also demonstrated our continued focus and innovation programmes which allow our customers to bring great products to the market.”

Gilles Andrier, Chief Executive Officer

Sales performance

In the first three months of 2023 Givaudan recorded sales of CHF 1,773 million, an increase of 3.6% on a like-for-like (LFL) basis and a decrease of 0.4% in Swiss francs.

Givaudan started the year with good business momentum whilst maintaining its operations and global supply chain at a high level, despite the challenging external environment continuing to affect some parts of the business.

With sustained higher input costs in 2023, the Company is continuing to implement price increases in collaboration with its customers to fully compensate for the increases in input costs.

Fragrance & Beauty sales were CHF 837 million, an increase of 6.8% LFL1 and an increase of 3.3% in Swiss francs.

On a business unit basis, Fine Fragrance sales increased by 20.9% LFL against a high prior year comparable growth of 17.4%, Consumer Products sales increased by 3.0% LFL and sales of Fragrance Ingredients and Active Beauty increased by 5.1% LFL.

The sales growth was driven by the volume increases in Fine Fragrance with sustained high levels of new business. In addition, pricing actions were implemented in all business units. The growth was achieved across all customer groups with particularly strong performance in the high growth markets.

Taste & Wellbeing sales were CHF 936 million, an increase of 1.0% LFL1 and a decrease of 3.5% in Swiss francs.

On a regional basis, the sales performance was driven by Europe, which increased by 6.7% LFL, South Asia, Africa and the Middle East sales which increased by 23.4% and Latin America, where sales increased by 10.9% LFL. Sales in North America declined by 10.7% LFL and Asia Pacific declined by 3.8%. Pricing actions were implemented in all regions.

From a segment perspective Snacks, Beverages, and Sweet Goods all contributed to the growth.

Our mid and long term ambitions

Our 2025 strategy, ‘Committed to Growth, with Purpose’, is our intention to deliver growth in partnership with our customers, through creating inspiring products for happier, healthier lives and having a positive impact on nature, people and communities.

Ambitious targets are an integral part of this strategy, with the Company aiming to achieve organic sales growth of 4-5% on a like-for-like basis and free cash flow2 of at least 12%, both measured as an average over the five-year period strategy cycle. In addition, we aim to deliver on key non-financial targets around sustainability, diversity and safety, linked to Givaudan’s purpose.

Our bold and ambitious long-term purpose goals are defined in four domains: creations, nature, people and communities. Our ambitions include doubling our business through creations that contribute to happier, healthier lives by 2030, becoming climate positive before 2050, becoming a leading employer for inclusion before 2025 and sourcing all materials and services in a way that protects the environment and people by 2030.


Upcoming events
Half year results – 20 July 2023
Half year conference – 30 August 2023
Nine month sales – 12 October 2023
Investor Days – 5-6 October 2023
Full year results – 25 January 2024

Contact
Pierre Bénaich, Head of Investor and Media Relations
T +41 22 780 9053

Key Tables

Sales performance January to March

In millions of Swiss francs

2022

2023

Change %

2023

Change %

Sales as

reported

LFL

development1

Sales

LFL1

LFL basis1

Acquisition

impact (net)

Currency

effects

Sales as

reported

In Swiss

francs

Group

1,780

64

1,844

3.6%

-71

1,773

-0.4%

Fragrance

& Beauty

810

55

865

6.8%

-28

837

3.3%

Taste & Wellbeing

970

9

979

1.0%

-43

936

-3.5%

Sales January to March – Fragrance & Beauty

In millions of Swiss francs

2022

Sales growth LFL1

2023

Sales growth LFL1

Fine Fragrances

17.4%

20.9%

Consumer Products

- 2.3%

3.0%

Fragrance Ingredients and Active Beauty

8.2%

5.1%

Sales January to March – Taste & Wellbeing

In millions of Swiss francs

2022

Sales growth LFL1

2023

Sales growth LFL1

Europe

12.9%

6.7%

South Asia, Middle East and Africa

10.9%

23.4%

North America

0.5%

-10.7%

Latin America

14.4%

10.9%

Asia Pacific

2.4%

-3.8%

Sales evolution by market – January to March

In millions of Swiss francs

2022

2023

Change %

2023

Change %

Sales as

reported

LFL

development1

Sales

LFL1

LFL basis1

Acquisition

impact (net)

Currency

effects

Sales as

reported

In Swiss

francs

High growth markets

752

72

824

9.7%

-48

776

3.3%

Mature markets

1,028

-8

1,020

-0.8%

-23

997

-3.2%

Sales evolution by region – January to March

In millions of Swiss francs

2023

2022

Change %

Change %

Sales as reported

Sales as reported

On LFL basis1

In Swiss francs

Latin America

206

197

10.9%

4.4%

Asia Pacific

422

424

4.9%

-0.5%

North America

432

476

-9.5%

-9.3%

Europe, Africa, Middle East

713

683

9.9%

4.4%

Notes:

  1. LFL (Like-for-like) 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, lease payments and purchase and sale of own equity instruments.

22/02/2024