(Reuters) – Swiss fragrance and flavor maker Givaudan on Friday reported annual results that beat market expectations, underpinned by strong sales growth in its markets, and said it was likely to exceed its 2021-2025 growth target.
Strong sales growth has boosted Givaudan’s profitability over the past year, and there is an extremely strong smell to it.
Its full-year revenue rose 12.3% on a like-for-like basis to 7.41 billion Swiss francs ($8.19 billion), beating the average forecast of 7.39 billion analysts in a survey compiled by the company.
Operating earnings before depreciation and amortization (EBITDA) rose 19.8% on a reported basis to 1.77 billion francs, also higher than the 1.75 billion analysts expected.
Givaudan, which makes fragrances for perfumes and flavors for food and beverages, said that based on average sales growth of a similar 7.2% over the past four years, it should have exceeded the upper end of its target of 4-5% range for the five-year guidance period.
Full-year sales at the fragrance and beauty unit rose 14.1% on a like-for-like basis from 2023, while the taste and wellness business, which accounts for more than half of Givaudan’s revenue, saw a 10.7% increase on a like-for-like basis.
Both beat analysts’ expectations for 13.9% and 10.1% growth.
Among its markets, Latin America saw the largest increase in organic sales, while North America saw the smallest increase.
“We are very pleased with our financial performance in 2024, driven by a high level of volume-related sales growth across all markets, segments and customer groups,” CEO Gilles Andrier said in a statement.
Givaudan proposed a dividend of 70 francs per share for 2024, 2.9% higher than what was paid last year.
($ 1 = 0.9051 Swiss francs)
