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By
Reuters
Published
Apr 16, 2013
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Weak perfume ingredient demand hits Givaudan sales

By
Reuters
Published
Apr 16, 2013

ZURICH - Sales at fragrance and flavour maker Givaudan SA rose less than expected in the first quarter as demand fell in Europe and North America for its fine fragrances used in perfumes.

Sales increased 3.9 percent on a like-for-like basis to 1.089 billion Swiss francs ($1.17 billion), the company said in a statement on Tuesday, missing an average forecast for 1.112 billion in a Reuters poll.

Sales in its fine fragrances unit declined 5.5 percent as strong new business was not enough to offset a decline in Europe and North America, the group said.

The Geneva-based company, which competes with Germany's Symrise and American International Flavors & Fragrances, said demand for its consumer products business and snack, beverages and dairy flavors remained strong.

The group confirmed its mid-term guidance of 4.5-5.5 percent growth in underlying annual sales, above an assumed market growth of 2-3 percent.

Givaudan shares have risen more almost 19 percent so far this year, pushed up by robust full-year results and a substantial dividend increase announced in February. They trade at a premium to peers Symrise and IFF.

Symrise said in March it wanted to outperform estimated market growth of 2-3 percent this year and grow sales by 5-7 percent per year through 2020. It expects raw material prices to remain at a high level in 2013.

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