Givaudan, the leading global company in fragrance and aroma manufacturing, has announced an impressive increase in sales during the first nine months of 2021. The growth is attributed to the fine perfumery sector and the resurgence of the catering industry following the relaxation of health protection measures.

According to a press release issued by Givaudan, the company’s revenue rose by 5.8% to CHF5 billion (€4.7 billion) from January to September compared to the same period last year. This growth translates to 7.7% when excluding exchange rate effects and acquisitions. In addition to these positive figures, Givaudan revealed its acquisition of DDW The Color House, a US-based manufacturer of natural dyes. However, the financial details of the acquisition were not disclosed.

The reported sales results align with analysts’ expectations, who had predicted a revenue of CHF5 billion for the company. Givaudan’s perfumery division experienced an impressive sales increase of 8.4% (excluding exchange rate effects and acquisitions) to reach CHF2.3 billion. Fine perfumery proved to be a standout with significant growth of 28.6%. This recovery is particularly noteworthy given the sector’s decline of 11.3% in 2020 due to store closures and decreasing sales at duty-free shops.

Sales in functional perfumery, which caters to the increasing demand for personal care products, also saw a 2.5% increase. Givaudan is known for its expertise in developing fragrances for renowned perfumery brands such as Christian Dior and Prada.

The company’s aroma business also experienced a notable growth in sales, reaching CHF2.7 billion with a 7.2% increase. This growth was attributed to the “continued recovery in Q3” of the fast food sector. Although the aroma business initially faced challenges due to restaurant closures during the pandemic, it managed to adapt and thrive with the surge in demand for home-delivery meals and products.

Givaudan remains focused on its medium-term financial targets and aims to achieve a revenue growth between 4% and 5% until 2025, excluding acquisitions. The company has actively pursued external growth operations, including significant acquisitions such as French companies Soliance and Naturex in previous years.

With its most recent acquisition of DDW The Color House, Givaudan solidifies its position as one of the market leaders in natural dyes alongside Danish company Oterra. The acquisition is expected to contribute an additional $140 million in sales to Givaudan’s revenue for 2020.

Although Givaudan’s share price experienced a slight downturn of 1.21% to CHF4,235 following the announcement of its financial results, this was in line with the overall market trend of a 0.34% loss due to profit-taking after reaching a record high in August.

Despite this minor setback, Givaudan remains confident in its growth prospects and is well-positioned to capitalize on the recovery of the fine perfumery and catering sectors. With its strategic acquisitions and strong position in the fragrance and aroma industry, Givaudan is poised for continued success in the coming years.

Useful Links:
1. Givaudan Official Website
2. Givaudan Fragrance Collection