2002 Nine months sales

In the first nine months of 2002, Givaudan recorded sales of CHF 2’049.0 million, representing a growth of 16.4% in local currencies and 10.1% in Swiss Francs compared to the same period of last year. Since May, sales include the figures of the flavour business of Nestlé (FIS).

Givaudan continues to actively pursue its objective of becoming the undisputed leader in terms of growth, profitability and innovation. A solid pipeline of new projects with key customers provides confidence for future growth, despite the difficult economic and political climate.

Barring unforeseen events Givaudan expects good results for the full year 2002.

Sales January to September 2002 in actual terms

Sales January to September 2002 in pro forma terms,
as if FIS would have been consolidated since 1 January 2001

Strong overall performance in Flavours
The Flavour Division recorded double-digit growth in the regions of North America, Europe/Africa/Middle East as well as Asia Pacific. Major wins in all segments, particularly in beverages, contributed to this success. Savoury and food service sales made a major step forward thanks to the integration of FIS.

In Asia Pacific, the markets of Japan, China, and Oceania were significant contributors to the region's double-digit growth. Sales gains were balanced between growth in existing business as well as new wins with key accounts throughout the region. Givaudan substantially outperformed the overall market. The programme of leadership in authentic ethnic taste was a major contributor to this success.

In Latin America, all key markets, with the exception of Argentina, continued showing a positive sales growth trend versus last year. Mexico and the Andean region grew at a double-digit pace, while Brazil delivered solid growth. Major wins in beverages, the largest business segment in the region, significantly contributed to the positive result.

Sales in USA and Canada continued to expand at a double-digit rate versus prior year in local currency terms. The trend remains favourable with double-digit growth in the third quarter, led by the beverage segment. Food service sales continued to gain momentum as Givaudan begins to achieve major wins in this market segment.

Sales in Europe, Africa and Middle East continued the positive trend from the first half by considerably outperforming market growth in local currency terms . The confectionery, savoury and beverage segments contributed to this positive results as well as strong performances in the markets of Central Europe, the United Kingdom, Spain, Portugal and France.

Slow recovery in Fragrances
The Fragrance Division continued to show a mixed sales development in the different business units. While Consumer Products maintained strong sales growth momentum, which had begun in 2001, Fine Fragrances sales remained under pressure due to low consumer confidence levels. Sales of Fragrance Ingredients are below last year primarily due to continued price pressure on commodities, a further decrease of cosmetic ingredients sales and lower levels of ingredient sales to fine fragrance producers.

The Consumer Products business unit showed double-digit growth in all regions except Latin America, which recorded single-digit growth. North America and Europe registered excellent growth due to the good performance with key customers and new wins, which resulted from recent core listings. Asia Pacific continued to show strong growth, with the markets of China, Indonesia and India as primary drivers. In China big local accounts have made a substantial contribution to the double-digit growth. Latin America continues to be adversely affected by the situation in Argentina, however excluding Argentina growth in Latin America is comparable to other regions. In Mexico, important new wins were recorded with international key customers.

Fine Fragrance sales were negatively impacted by the overall economic conditions. The shortfall is spread proportionally across all clients and brands, however the dynamic Speciality Retail segment showed a positive development. Several new wins and a strong brief portfolio in our Creative Centres in Paris and New York provide confidence for the future.

Sales of the Fragrance Ingredients business unit continued to suffer from sustained price pressure on commodities, a further decrease of cosmetic ingredient sales and lower levels of sales to fine fragrance producers. Sales in all global regions declined with the exception of Asia Pacific where strong growth was achieved in China and India.
Sales of patented aroma chemical specialities continued to grow at a double-digit rate.
 

For further information please contact:
Peter Wullschleger, Givaudan Media Relations
5, chemin de la Parfumerie, CH-1214 Vernier
T +41 22 780 90 93, F +41 22 780 90 90
E-mail: peter_b.wullschleger@givaudan.com