Oct 14, 2021
Givaudan’s sales in first nine months of 2021 driven by perfumery, catering sectors
Oct 14, 2021
On Tuesday, Swiss group Givaudan, the world's leading fragrance and aroma manufacturer, reported a sales rise in the first nine months of the year, driven by fine perfumery and a renewed impetus in the catering sector, following the easing of health protection measures.
From January to the end of September, Givaudan's revenue grew by 5.8% over the same period last year, to CHF5 billion (€4.7 billion), as the group stated in a press release.
Givaudan indicated that, excluding exchange rate effects and acquisitions, its growth was 7.7%. The Swiss group also announced a new acquisition, that of US natural dyes manufacturer DDW The Color House, for an undisclosed amount.
These results were in line with the forecasts made by analysts interviewed by Swiss press agency AWP, who on average had predicted a revenue of CHF5 billion.
Givaudan indicated that sales for the perfumery division increased by 8.4% excluding exchange rate effects and acquisitions, up to CHF2.3 billion, driven by fine perfumery, which increased by 28.6%. Givaudan develops fragrances for leading perfumery names like Christian Dior and Prada.
In comparison, the fine perfumery category lost 11.3% in 2020 due to widespread store closures and declining sales at airport duty-free shops.
Sales for so-called functional perfumery, which had previously been boosted by rising demand for personal care products, grew by 2.5%.
In the press release, Givaudan indicated that sales for its aroma business picked up pace, growing by 7.2% to CHF2.7 billion, thanks to the fast food sector’s “continued recovery in Q3.” The division had managed to weather the pandemic’s impact due to rising demand for home-delivery meals and products during lockdown, but was impacted by restaurant closures.
The Geneva-based group has confirmed its medium-term financial targets, and still aims for a growth in revenue between 4% and 5% until 2025, excluding acquisitions.
After acquiring French company Soliance in 2014, Givaudan multiplied its external growth operations. The group invested nearly €1.3 billion in 2018 to buy another French company, Naturex, but it also carried out various small targeted acquisitions, especially in the natural ingredients sector.
On Monday evening, the day before publishing its financial results, Givaudan announced the acquisition of DDW The Color House, a manufacturer of natural dyes including caramel dyes, caramelized sugars and “fruit and legume-based brown dyes,” as the US company stated on its website.
DDW is based in Louisville, Kentucky, has 315 employees and operates 12 production sites worldwide. Without disclosing further financial details, Givaudan stated that the acquisition amounts to an additional $140 million in sales on top of the group’s 2020 revenue, which was CHF6.3 billion.
“This acquisition will enable Givaudan to become one of the market leaders in natural dyes behind Oterra,” said Jean-Philippe Bertschy in a stock market note. Danish company Oterra is one of the leading suppliers of natural dyes for the food industry.
At 8.15 am GMT on October 12, Givaudan’s share price was down 1.21% to CHF4,235, while the market was recording a 0.34% downturn, hit by a profit-taking drive after reaching a record high in August.
Zurich, October 12 2020 (AFP)
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