‘Drastic’ restocking in fine fragrances boosts Firmenich results

The Switzerland based company recorded sales of CHF 2,873m, (€2,151m) for the financial year ending June 30, an increase of 12.1 per cent in local currencies and 8.7 per cent in Swiss Francs when compared to last year’s figures.

Firmenich said that a rebound in fine fragrances sales was seen in the second half of the year which it put down to customers drastically restocking as they realised the need to respond quickly to an increase in consumer demand.

Overall the fragrance sector, which includes fine fragrances, body care and home care, recorded double digit sales growth compared to last year’s figures. Exact figures were not published as Firmenich is not a publicly traded company.

Body care also experienced growth and the company said leading product categories were deodorants, skin care and body perfume.

North American rebound​

Although strongest growth was seen in the emerging markets, the company did highlight North America’s performance saying that it reflected a ‘strong rebound after last year’s recession.’ In addition, Europe saw a particularly strong recovery in fine fragrances, it claimed.

Ingredients reported high single digit growth and in perfumery was similarly boosted by the rebound in the fine fragrance market. Natural ingredients were also a popular category and Firmenich claimed the reorganization of its naturals plant in the south of France – completed during the year – will reinforce its leadership in the natural ingredients sphere.

Towards the end of the financial year, Firmenich’s new ingredient plant in the Gujarat Province, India opened. Production is set to be accelerated as the plant gets up to speed and Firmenich said it will enable it to respond to the growing demands of the global market.

Sustainability goals ​

The company also highlighted a number of sustainability goals it achieved relation to water management, hazardous waste and green energy production.

Against a 2005 baseline, the firm achieved a 24 per cent reduction in CO2 emissions a 29 per cent cut in volatile organic compound waste, 23% less water usage and produced 45 per cent less hazardous waste.

Recent energy saving projects include solar installations in Switzerland, South Africa and Brazil, with Firmenich committed to investing CHF 25 million by 2015 on renewable energy production.

In June 2010 it completed a photovoltaic energy system at its Princeton New Jersey site that provides 12% of plant electricity, and expects to complete a wind/solar installation in Newark, NJ during 2011.