Swiss-based fragrance and flavor giant Givaudan has disclosed Q3 sales figures that slightly missed market expectations due to currency exchange fluctuations and reduced volumes in key segments such as health care, savory, and dairy.
For the July to September period, the group’s sales decreased by 4.3% to 1.73 billion Swiss francs ($1.92 billion). This figure fell short of the average analyst estimate of 1.76 billion francs, based on a company-conducted poll. Currency conversions accounted for a 148 million francs impact on the results.
However, on a like-for-like basis, which excludes currency effects and recent acquisitions, sales showed a commendable 4% growth, reaching 1.88 billion francs for the quarter. This result surpassed the analysts’ projection of 2.5% growth.
Givaudan, headquartered in Geneva, continued its strategy of shifting rising input costs to customers. The company faced challenges with declining volumes, primarily due to inventory reductions and weakened demand, especially in North America. Notably, North America remains the only region to register a like-for-like decline in the first nine months of the year.
In response to the persistent increase in input costs for 2023, Givaudan has been working closely with customers to implement price adjustments, ensuring full compensation for the rising input costs.
Givaudan’s taste and wellbeing unit, responsible for marketing food and beverage extracts and constituting 53% of its revenue, reported a 7.3% sales decrease in Swiss francs over the nine-month period. However, on a like-for-like basis, sales remained steady.
On the other hand, the fragrance business, Givaudan’s second-largest unit, posted a robust 6.4% growth on a like-for-like basis, with a 0.9% increase in Swiss francs over the same period.
