Givaudan sales rise 5.6% thanks to deals in developing markets

Givaudan sales rise 5.6% thanks to deals in developing markets

A strategy to seek out new deals in emerging markets has helped boost fragrance and flavor maker Givaudan’s sales by 5.6 per cent in the first quarter of 2016 to US$1.21 billion.

The move came as sales in 2015 struggled due to its top customers struggling from sluggish global demand, with the company deciding to find new clients to offset its reliance on these industry giants, one of which ended a long-standing contract last year.

The company’s fragrance division saw a like for like growth rate of 8.3 per cent, up from CHF519 million to CHF561 million. Fine fragrance sales were up 10.1 per cent, driven by high growth markets, in particular Latin America. In the mature markets, double digit growth in North America offset weaker sales in Western Europe. Sales were affected by a weaker holiday period.

The first quarter sales results matched those in a Reuters forecast made up of eight analysts with the Geneva-based company also confirming its mid-term goal of 4 to 5 per cent annual sales growth by 2020.

In the Q1 2016 the company saw demand in high growth markets of Argentina, Brazil, India and Indonesia with the consumer products division of its flavors department achieving a double digit rise in sales. This section creates scents for perfumes such as Prada and Dior.

New wins in the high growth markets added weight to its current business expansion.