Givaudan has revealed its results for the first half of the current financial year. The Swiss flavors and fragrances manufacturer saw sales rise 5.6 percent on a like-for-like basis during the first six months of the year (7.7 percent in local currency) to reach CHF2,674 million.
However profit slipped 4.4 percent to CHF 1,182 million, which the company attributed to the impact of a ‘single significant supply disruption of a major supply of fragrance ingredients, which has impacted the fragrance industry’.
“On the topline we are very happy with the growth so far. We’ve seen pretty much a rebound with high growth markets – so China, India, Latin America, which have been growing double digits. Obviously the profitability has been hit just on the fragrance side and this has to do with a one-time event – a major disruption to the supply of fragrance ingredients which affected the whole industry,” CEO Gilles Andrier told CNBC.
The fragrance division put in an impressive performance with sales up 6.5 percent like-for-like and 7.5 percent in Swiss francs to CHF1,451 million. Within the division, fine fragrance bounced back strongly from its weak performance last year with double-digit growth in all regions for a total sales increase of 15.6 percent (like-for-like).