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By
Reuters
Published
Apr 11, 2017
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Givaudan confirms targets as Q1 growth beats poll

By
Reuters
Published
Apr 11, 2017

Flavour and fragrance maker Givaudan confirmed its mid-term targets and said it wanted to keep growing its dividend after growth slowed less than expected in the first quarter, helped by a strong performance in North America.



"Givaudan started the year with good business momentum," the Geneva-based company said in a statement on Tuesday, adding it was implementing price increases in collaboration with its customers to compensate for increases in input costs.

It confirmed its goal of like-for-like annual sales growth of 4-5 percent on average until 2020 and said it wanted to maintain its dividend practice. It has increased the dividend for 16 years in a row.

Sales of 1.24 billion Swiss francs ($1.23 billion) in the first quarter of 2017 were up 3.5 percent like-for-like, slower than 5.8 percent in the year-ago period but above the average estimate of 1.5 percent growth in a Reuters poll.

Sales at its fragrance unit that created perfumes such as Tom Ford Noir Pour Femme and Bottega Veneta Pour Homme Extreme rose 2.1 percent despite a high comparison base, helped by strong gains in fine fragrances in western Europe, Africa and the Middle East and a double-digit increase in the home care segment.

Among regions North America stood out with 9.2 percent like-for-like overall growth, thanks to a weaker comparison and new wins in dairy and beverages, Givaudan said.

Givaudan and its peers are grappling with slowing growth at consumer goods groups such as Nestle and Unilever , to whom they supply flavours for foods and drinks and fragrances for toothpaste and soap, and a rise in raw material prices.



 

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