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Givaudan sales growth in line with plan
VOLTAR

17/04/13

In the first three months of 2013 Givaudan recorded sales of CHF 1,088.9 million, an increase of 3.9% on a like-for-like basis, and 2.7% in Swiss francs compared to the previous year.

Givaudan said that it started the year with a continued solid business momentum with a full project pipeline and win rates sustained at a high level, and with growth rates in line with the company’s mid-term sales growth objectives.

Mid-term, the company said that its overall objective is to grow organically between 4.5% and 5.5% per annum, assuming a market growth of 2-3%, and to continue on the path of market share gains. By delivering on the company's five pillar growth strategy – developing markets, Health and Wellness, market share gains with targeted customers and segments, research and sustainable sourcing – Givaudan said that it expects to outgrow the underlying market and to continue to achieve its EBITDA margin while improving its annual free cash flow to between 14% and 16% of sales by 2015.

Givaudan’s Flavour Division reported sales of CHF 571.8 million, representing a 3.7% growth on a like-for-like basis and 1.9% in Swiss francs.

Sales increased in the developing markets of Africa, China, India, Indonesia and Eastern Europe as a result of existing product growth and new wins. In addition, growth in the mature markets of North America and Western Europe was offset by declines in Australia, Japan and Korea. Growth by segments can, said the company, be attributed to double digit gains in Snacks and strong performance in Beverages and Dairy.

Sales for Asia Pacific increased 3.7% on a like-for-like basis, with good performance in the developing markets of China, India and Indonesia. Mature markets of Japan and Korea were below prior year against very high comparables. Beverages, Dairy, Snacks and Sweet Goods segments grew as a result of new wins and existing business growth.

Sales for Europe, Africa and the Middle East grew 4.0% on a like-for-like basis. Strong single digit gains were achieved in the emerging markets of Africa, Middle East and Eastern Europe. The mature markets delivered solid performance in the face of the economic uncertainties as new business and expansion of existing products contributed to the growth. Snacks delivered double digit gains and Beverages achieved good performance.

Sales in Latin America delivered growth of 6.3% on a like-for-like basis, continuing on the success of the previous year. The increase was the result of double digit gains in Brazil and Argentina as well as strong performance in Mexico. New wins and growth of existing products in Beverages, Dairy and Snacks helped drive the increase.

Sales grew 1.9% on a like-for-like basis in North America. Double digit growth was achieved in Snacks with additional gains coming from Dairy, Savoury and Sweet Goods. New wins and growth of existing business fuelled the increase.
 

VOLTAR




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