On Thursday, January 29, Swiss group Givaudan published mixed annual results, hampered in particular by US customs duties.
The manufacturer of ingredients for perfumes, cosmetics, and hygiene products, as well as flavors for the food industry, reported sales and net income in line with forecasts for fiscal year 2025, but disappointed on a few key indicators in a market that appears to be very nervous when it comes to consumer goods companies.
Despite a very high basis for comparison and unfavorable currency effects due to the strength of the Swiss franc, Givaudan reported a 0.8% increase in annual sales to 7.47 billion Swiss francs (8.15 billion euros or 9.67 billion U.S. dollars), once again boosted by fine fragrances.
On a comparable basis – excluding currency effects, acquisitions and disposals – growth was 5.1%, compared with 12.3% in 2024. The figure is only slightly below the expectations of analysts surveyed by the Swiss agency AWP, who had forecast an average of 5.2%.
The group’s net profit fell by 1.7% compared with the previous year to CHF 1.07 billion, in line with forecasts. However, the group disappointed on its EBITDA margin, which, although still high, fell to 24.2% from 24.5% in 2024, weighed down by negative currency effects and “higher raw material costs” due to customs duties, the group explained in its earnings release.
“Overall, Givaudan posted good operating results for 2025,” but “its organic growth and profitability fell short of expectations,” said Daniel Bürki, an analyst at Zurich Cantonal Bank.
In a stock market commentary, he pointed out that the ingredients sector as a whole has been under pressure on the stock market “over the last twelve months” due to “dismal” growth prospects in the food, hygiene and cosmetics sectors.
Givaudan is one of the favorite stocks of investors on the Swiss stock market due to its steady growth, which seems to leave little room for disappointment in its results.
