Givaudan reports strong fragrance sales growth

Total sales rose 40.6 per cent in local currency terms to CHF3.10bn (€1.86bn) for the nine months ending September, 30. The extent of the increase reflects the inclusion of Quest sales as of March 2007, when Givaudan completed the CHF2.8bn (€1.7bn) acquisition. Imagining that Quest had been consolidated in January 2006, the fragrance division recorded nine month sales of CHF1.56bn (€0.94bn) after experiencing six per cent growth in local currency terms. European fine fragrance sales were strong, supported by numerous recent launches, while North American growth remained sluggish. In the consumer products division all regions contributed to growth with sales in North America growing at double digit levels. Latin America also delivered high levels of growth along with China and India in the Asia Pacific region. In the fragrance ingredients section sales growth was solid with high double digit growth being seen in specialties thanks to a strong focus on innovation. The acquisition of the fragrance firm Quest was in line with Givaudan's strategy of focusing on developing markets and capturing opportunities in key segments. It was designed to strengthen its position in important growth markets such as Asia Pacific, Latin America and Eastern Europe. Indeed, Givaudan has experienced solid growth in these areas. According to Givaudan, the integration of Quest International is progressing well, having a strong influence on the performance of the fragrance division. The flavour division experienced slower growth than the fragrances division, recording 1.9 per cent growth as opposed to 6 per cent growth. The company only releases operating results with its full year financials.