The Swiss-based producer of scents, aromas, and cosmetic components alleviated worries regarding a potential downturn in the United States on Tuesday, October 14, after announcing “strong” sales for the initial nine months.
From January to September, the Geneva-based entity registered earnings of CHF 5.7 billion Swiss francs (EUR 6.1 billion or USD 7.1 billion), an increase of 5.7% on a comparable basis (excluding effects from currency and acquisitions) and 1.7% when expressed in Swiss francs.
Mirroring the first semester, premium perfumes remained the key driver of expansion, with sales jumping 18.7% despite elevated prior-year results due to multiple years of double-digit gains.
The organization also stated it proceeded with enacting pricing modifications to “fully offset” the consequences of inflated raw material and duty expenses, according to a press announcement.
Specifically, Givaudan’s Fragrance & Beauty segment, encompassing scents for detergents and sanitary products as well as skincare ingredients, generated revenues of CHF 2.9 billion, a rise of 8% versus the equivalent timeframe in the prior year, removing currency fluctuations and takeovers.
In parallel, revenues from flavors for the food sector totaled CHF 2.8 billion, a gain of 3.4%. In North America, sales advanced by 3.9%.
Concerns over slowdown “eased”
These outcomes align with projections from analysts polled by the Swiss news service AWP, who predicted an average of CHF 5.7 billion in revenue, composed of CHF 2.9 billion from the Fragrance & Beauty sector and CHF 2.8 billion from Flavors.
Arben Hasanaj, an analyst at Vontobel, portrayed the sales figures as “strong,” emphasizing that they “reduce immediate market concerns,” especially regarding “a deceleration in the United States” or “a drop in perfumery demand,” as he stated in a market analysis.
Givaudan refrains from providing immediate forecasts but instead offers a continuous five-year strategy. For the duration until the close of 2025, the group had set a target of 4–5% annual sales growth, but indicated it is “very likely to surpass the higher range” of that forecast, considering sales have already risen by an average of 7.2% between 2021 and 2024.
In late August, Givaudan unveiled its ambitions leading up to 2030, this occasion aiming for 4 to 6% expansion over the subsequent half-decade.
