The Swiss fragrance and flavor manufacturer announced on Tuesday, April 14, a 2.8% increase in sales on a like-for-like basis in the first quarter, significantly exceeding analysts’ expectations, which averaged 1.9%.
However, amid Middle East tensions, the sharp appreciation of the Swiss franc — a traditional safe-haven currency — dragged Givaudan’s revenue down 5.2% to roughly CHF 1.9 billion in the first quarter.
The group—spanning fine fragrances, laundry and hygiene scents, and cosmetic ingredients—posted 5.9% sales growth at constant exchange rates, driven by a 9.6% rise in fine perfumery. Reported in Swiss francs sales slipped 0.6%.
Sales in the group’s flavor business declined by 0.4% on a like-for-like basis and by 10% after conversion to Swiss francs.
Price increases
Givaudan said it plans to raise prices to “fully compensate” higher input costs, without specifying the scale of the increases.
The group also reaffirmed its medium-term targets, continuing to aim for average annual sales growth of 4% to 6% through 2030, excluding currency effects and acquisitions.
