(Reuters) -Swiss fragrance and flavour maker Givaudan on Friday reported annual results above market expectations, buoyed by strong sales growth across its markets, and said it would most likely exceed the growth target for 2021-2025.
Strong sales growth has boosted Givaudan’s profitability over the past year, with an exceptionally strong fragrance business leading the way.
Its full-year revenue rose 12.3% on a like-for-like basis to 7.41 billion Swiss francs ($8.19 billion), beating analysts’ average forecast of 7.39 billion in a poll compiled by the company.
Operating earnings before depreciation and amortization (EBITDA) grew 19.8% on a reported basis to 1.77 billion francs, also higher than the 1.75 billion expected by the analysts.
Givaudan, which makes fragrances for perfumes and flavours for food and drinks, said that based on average like-for-like sales growth of 7.2% in the last four years, it was set to exceed the upper end of its 4-5% target range for the five-year guidance period.
Full-year sales at the Fragrance & Beauty unit grew by 14.1% on a like-for-like basis from 2023, while the Taste & Wellbeing business, which makes up more than a half of Givaudan’s revenue, recorded a 10.7% increase on the same basis.
Both beat analysts’ expectations for 13.9% and 10.1% growth, respectively.
Among its markets, Latin America recorded the biggest rise 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)
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