Restocking boosts Givaudan’s first quarter
The Switzerland-based company said restocking had helped boost sales, in particular for its fragrance division which suffered significantly in the first quarter of 2009.
Sales for the fragrance division in the quarter came in at CHF 495.7m (€345.6m), compared to the CHF 438.4m recorded in the same period last year. In Swiss francs this translates to a 13.1 per cent increase.
However, significant destocking in the first quarter of 2009 depressed the comparison figures and comparing to the same period in 2008, results in just over a 1 per cent increase.
Fine fragrances performed particularly well with sales up 26.9 per cent in local currencies which Givaudan put down to new wins with key accounts and customers resuming ‘normalised order patterns compared to the de-stocking seen a year earlier’.
Sales gains were strongest in North America and Europe, similarly reflecting the low comparison figures of last year.
Developing markets boost flavour sales
The flavour division has also returned to sales similar to 2008 first quarter levels, although growth compared to 2009’s figures is less impressive than that for fragrance.
Up 6.1 per cent in Swiss francs, growth in flavour sales was driven by new wins and strong growth in developing markets, according to the company. The company highlighted sweet goods, beverages and dairy as segments that benefited in particular from new wins.
Sales in Asia-Pacific grew 13.7 per cent with particularly good performances in China, India and Indonesia, whereas North America sales remained flat. The company put this down to the continued weak economic environment.
In Europe, Africa and the Middle East, sales grew 7.5 per cent with the developing markets including Russia and Poland driving growth. But, it was the Latin American market that achieved the best sales growth at 19.1 per cent compared to last year’s figures.
No details on profit were released but Givaudan did say it was planning on returning to EBITDA levels it enjoyed before the Quest acquisition. Savings related to the integration of the company of CHF 200m should be realised by the end of the year, it claims.