GillesAndrier – The Beauty Influencers

Fragrance Foundation Honors Givaudan CEO Gilles Andrier

Meredith Schott — Mon, 10 Jun 2024 18:47:56 +0000

Givaudan CEO Gilles Andrier is an exemplary leader who is beloved and admired by all those who have worked for him -and with him, throughout his career. Over his two decades at Givaudan, he has not only enhanced the company’s value, but has built a network of strong global relationships and a reputation for trust and enthusiasm.

As he is honored by the Fragrance Foundation with their prestigious 2024 Hall of Fame Award, here is a repost of their Interview with Gilles Andrier…

“My favorite part of my job is the interactions,” says Givaudan CEO Gilles Andrier “I’m most stimulated when I’m engaged with others. It can be with clients or with an employee in the plant or in the lab, but I am happiest when at the end of every day I can say that I learned something.”

About receiving the prestigious Hall of Fame recognition, Andrier says, “It’s a great honor. I embrace it for myself, but I also feel that it is a recognition of what’s at the heart of perfume—the perfumers, the craftsmanship, the magic of this business which I have loved for the last 30 years without any diminishing intensity. It is a recognition of Givaudan, which is a wide company because it has made so many acquisitions, but also a deep company because it goes back 250 years to when the industry started.”

Speaking from Geneva, just one stop on his forever-busy travel schedule, Andrier gives a glimpse into his life beyond Givaudan—he is married to acclaimed Vice President perfumer Daniela Andrier, with whom he has raised six children—and reveals how his personal passions inform his work as CEO. “I would say that exploring, experimenting, and never being afraid of doing things differently has shaped me,” he says, “and has let me become more of who I truly am, rather than just a guy in a suit.”

Givaudan VP Daniela Andrier, The Estée Lauder Companies’ Karyn Khoury and Givaudan CEO Gilles Andrier

How has being married to a perfumer shaped the way that you view fragrance?

Perfumers are at the heart of what we do. Being married to a perfumer has greatly enhanced my understanding of their perspective. For example, seeing how their work has to adjust to the fast changing environment surrounding them, handling the increasing speed and number of projects, and working with a palette of ingredients constrained with ever more regulations. The palette of ingredients is, like the alphabet, the only thing they have in common. However, the beauty of fragrance creation is the diversity of perfumers, each expressing themselves in a different language. So there are as many perfumers as individualities. Therefore, being married to a perfumer gave me one perspective, but conscious it is unique to her.

What are your favorite things to do when you’re not working?

I have a lovely family, and we enjoy exploring, traveling, and spending time together. And I cannot stop myself from being active. I love sports, especially cycling. And I love listening to music. I have always thought there is a similarity between music and perfume in the way that they touch emotions. A perfume is like putting a magical piece of music into a bottle.

Do you apply any insights or strategies from your leisure pursuits to your leadership at Givaudan?

I used to do a lot of sailboat racing when I was young, and how you work with a crew, how you help each other, how you are in there on the same boat being safe but also competing, and how you face the elements of the ocean and the wind—all of those things say a lot about individuals, but also how they behave as a team facing adversity. And when running Givaudan, these images sometimes resurface for me. It’s not like running a large company is like sailing a big boat, but there are a lot of analogies around how people can work together.

How has your leadership style changed over the years that you’ve been with Givaudan?

It’s changed a lot. At the beginning, I was a bit intimidated. I had to learn about a lot that I had not been used to, like dealing with investors and shareholders—and it’s a very large company, so it wasn’t just about scaling up what I had done in the past but doing additional things that I hadn’t done before. In that stage of learning you are not yet totally yourself because you are being careful and safe. But there comes a moment when you begin to explore different ways of managing. I have experimented with ways of communicating and finding the right level of involvement in details. And I think that over time it has been a journey where I have become more and more myself.

What qualities do you think are most essential for good leadership?

Curiosity is the greatest strength I’ve had in all my jobs. The interest and ability to listen. When you show curiosity then you engage teams and the whole company. I’m also quite a demanding guy and if I don’t get something, I will go and chase it. That’s why I think Givaudan is performing quite nicely today. But the other thing that is important is humility. With humility comes the idea of being yourself in the job and shaping the job the way you want to shape it. Having humility inspires others to come closer to you. It is a good friend because you know what you don’t know and that you’re never at the top—there is always more to learn. I think that is essential.

In what ways do you think that building an emphasis on diversity is important, not only at Givaudan but in the fragrance industry as a whole?

It’s extremely important. When Givaudan shaped our purpose years ago it was not just about our impact on the environment, we also made ambitious targets and commitments on diversity, equity, and inclusion. It’s not just to look good—I hate that the same way I hate greenwashing. We are people who, when we say we are going to do something, always deliver. Diversity is really part of the culture of Givaudan because we are a consolidation of many companies in many different countries, with 16,000 people around the world. It’s built into our DNA, but we are focused on making progress and helping everyone feel included. That’s work we do every day. And it’s not just inside the company. We have consumers who embrace all genders and all types of diversity and we need to be relevant to them when we create fragrances.

What do you consider your greatest achievement?

I could go with figures. Givaudan was worth 4 billion when I started. It’s worth 40 billion now. But everybody will forget figures and those types of achievements. I think my biggest achievement is the common recognition that Givaudan is a “Human Company.” I have always believed it is almost more important how results are achieved than the results themselves. It is about the culture of a company, which makes companies sustain. It’s about feeling that you’re doing something good and contributing.

It’s the type of leader you are which makes the biggest impact. That’s what people remember.

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Givaudan unveils its first integrated fragrance encapsulation centre in Singapore

Christine Schott Ledes — Wed, 07 Dec 2022 23:20:35 +0000

As part of its 2025 strategy to provide new and superior product offerings for customers, Givaudan, the global leader in fragrance & beauty creation, today inaugurated its first integrated fragrance encapsulation centre in Singapore.

This integrated centre completes a five-year investment programme of CHF 30 million and will further support the development of encapsulation delivery technology, to meet consumers’ demand for long-lasting fragrance experiences, across a variety of product categories. As a world-first for the Company, it brings together all of Givaudan’s competencies around encapsulation: research, creation with dedicated perfumers on-site, production, and now the industrialisation capability with scale-up lab, in one site.

Aligned with Givaudan’s sustainability ambitions and purpose, this holistic fragrance encapsulation centre will significantly contribute to expanding biodegradable innovations, addressing customers’ expectations for high-performing planet-friendly scent release solutions to reach new consumers.

This encapsulation centre based in Singapore underscores our commitment to the Asia-Pacific region, aligned with our high growth markets expansion objective. Having all our encapsulation facilities housed in the same location will significantly sustain our innovation, operational reliability and internal agility, to effectively support our customers’ growth, Gilles Andrier, Chief Executive Officer

Designed to address responsible energy consumption challenges, the integrated encapsulation centre for fragrances obtained the Green Mark Gold certification and is a flagship demonstration of Givaudan’s high sustainability standards.

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Givaudan unveils its new brand identity, ‘Human by nature’.

Christine Schott Ledes — Tue, 15 Mar 2022 19:47:55 +0000

Over the past eight years, the Givaudan has expanded its activity into adjacent spaces with 20 acquisitions, going beyond flavors and fragrances into nutrition, health and wellbeing, and beauty. At the same time, societal expectations have shifted with a movement towards more responsible means of consumption and increasing consumer demand for products that make them both feel, and do good. Responding to this, Givaudan rearticulated its purpose and set out bold ambitions to increase its positive impact on people, society and the planet.

“Our brand is evolving to fully reflect the Company we are today and our vision for the future. ‘Human by nature’ celebrates the beauty of the human experience and our connection to nature. We are proud of being a very human company, committed to creating for happier and healthier lives, and deeply invested in showing our love for nature in everything we do.”

Gilles Andrier, Chief Executive Officer

Givaudan’s new brand identity was conceived taking into account the evolution towards a more purposeful society. By shaping the future of food with ‘feel good’ and ‘do good’ experiences that respect the planet and nourish body and mind; crafting fragrances to perfume the lives and memories of individuals all over the globe; and by offering innovative beauty and wellbeing solutions that make people feel, look, and do good, Givaudan continues to connect humans to nature while acting as an agent for a more sustainable future.

Givaudan is changing the way it presents itself to better reflect the role it plays and the value the Company brings to its clients and the world at large.

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Givaudan 2021 Half Year Results

Christine Schott Ledes — Sun, 25 Jul 2021 20:44:09 +0000

Givaudan Group sales for the first six months of the year were CHF 3,373 million, an increase of 7.9% on a like-for-like basis and 4.7% in Swiss francs.

Givaudan Fragrance & Beauty sales were CHF 1,564 million, an increase of 10.1% on a like-for-like basis and 7.4% in Swiss francs.

Givaudan Taste & Wellbeing sales were CHF 1,809 million, an increase of 6.1% on a like-for-like basis and 2.5% in Swiss francs.

As the COVID-19 pandemic continued to have an impact on a global level, Givaudan sustained good business momentum whilst maintaining its operations and global supply chain at a high level. The strong growth was achieved across most product segments and geographies, with the mature markets growing at 6.1% and the high growth markets at 10.4% on a like-for-like basis.

In Fragrance & Beauty the product segments most affected by the COVID-19 pandemic, namely Fine Fragrances and to a lesser extent Active Beauty, showed a strong improvement in the first half of 2021 as retail activity picked up and as customers and consumers maximized the availability of other channels, including direct selling and e-commerce. In Taste & Wellbeing the foodservice segment was still impacted by COVID-19 pandemic however experienced a strong recovery in the second quarter, as restrictions in relation to out of home food and beverage consumption started to be lifted in certain markets.

“I am really pleased with our strong performance in the first half of 2021, with all parts of our business contributing to the excellent financial results and a strong contribution from our 2025 strategic growth areas,” said CEO Gilles Andrier. “In an environment which still contains many uncertainties related to the COVID-19 pandemic, we have shown our resilience, our focus on supporting our customers and our ability to capture opportunities to assert our market leadership.”

From the onset of the COVID-19 pandemic and in line with the Company’s purpose, Givaudan continues to be strongly focused on:

Protecting and supporting its employees, be it those on site or those who are still working from home;
Meeting the demands of its customers. Particularly for those products which support consumers throughout the pandemic around the world;
Supporting the communities in which it operates.

Gross profit

The gross profit increased by 8.9% from CHF 1,359 million in 2020 to CHF 1,480 million in 2021. Due to high operating leverage related to the strong sales volume growth and cost discipline, the gross margin increased to 43.9% in 2021 compared to 42.2% in 2020.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)²

The EBITDA increased by 10.2% to CHF 809 million from CHF 734 million for the same period in 2020, whilst the EBITDA margin was 24.0% in 2021 compared to 22.8% in 2020. On a comparable basis, the EBITDA margin was 24.2% in 2021 compared to 23.7% in 2020.

in millions of Swiss francs	2021			2020
	Group	Fragrance & Beauty	Taste & Wellbeing	Group	Fragrance & Beauty	Taste & Wellbeing
EBITDA as published	809	375	434	734	333	401
EBITDA as published in %	24.0	24.0	24.0	22.8	22.9	22.7
Givaudan Business Solutions (GBS) costs	-1	-1		-4	-4
Acquisition and restructuring expenses^a	-7	-2	-5	-24	-4	-20
Comparable EBITDA³	817	378	439	762	341	421
Comparable EBITDA in %	24.2	24.2	24.3	23.7	23.4	23.8

Acquisition and restructuring expenses incurred of CHF 7 million (2020: CHF 24 million) are largely related to the acquisitions that the Group has undertaken and the ongoing optimisation of the manufacturing footprint.

Operating income

The operating income increased to CHF 613 million, compared to CHF 532 million in 2020. When measured in local currency terms, the operating income increased by 17.3%. The operating margin increased to 18.2% in 2021 from 16.5% in 2020.

Financial performance

Financing costs were CHF 46 million in the first half of 2021, versus CHF 39 million for the same period in 2020, largely related to the increase in net debt of the Group in connection with the recent acquisitions. Other financial expense, net of income, was CHF 1 million in 2021 versus CHF 13 million in 2020.

The interim period income tax expense as a percentage of income before taxes was 15% in 2021, compared with 14% for the same period in 2020.

Net income

The net income for the first six months of 2021 was CHF 481 million compared to CHF 413 million in 2020, an increase of 16.3%, resulting in a net profit margin of 14.3% versus 12.8% in 2020. Basic earnings per share were CHF 52.19 versus CHF 44.81 for the same period in 2020.

Cash flow

Givaudan delivered an operating cash flow of CHF 415 million for the first six months of 2021, compared to CHF 389 million in 2020.

Net working capital was 28.3% of sales compared to 27.9% in 2020, with temporarily higher accounts receivable and inventory levels related to the good business momentum and continuing COVID-19 pandemic.

Total net investments in property, plant and equipment were CHF 79 million, compared to CHF 122 million in 2020, when there was the impact of the completion of the new Fragrance & Beauty facility in China.

Intangible asset additions were CHF 41 million in 2021, compared to CHF 17 million in 2020, as the Company continues to invest in its IT and digital platform capabilities and in bringing all acquired entities on to the Givaudan operating platforms.

Total net investments in tangible and intangible assets were 3.6% of sales, compared to 4.3% in 2020.

Operating cash flow after net investments was CHF 295 million versus CHF 250 million recorded in 2020, an increase of 18.0%. Free cash flow⁴ was CHF 186 million in the first half of 2021, versus CHF 178 million for the comparable period in 2020, an increase of 4.5%. As a percentage of sales, free cash flow in the first six months of 2021 was 5.5%, compared to 5.5% in 2020.

Financial position

Givaudan’s financial position remained solid at the end of June 2021. Net debt at June 2021 was CHF 4,727 million, up from CHF 4,040 million at the end of December 2020 and CHF 4,631 million in June 2020. The leverage ratio⁵ was 54% compared to 50% at the end of 2020 and 56% in June 2020.

2025 guidance: Committed to Growth, with Purpose

The Company’s 2025 ambition is to deliver sustainable value creation for all stakeholders.

Givaudan’s 2025 strategy is fully in line with its purpose and places customers at the heart of its business, supporting them to grow and create products that are loved by consumers.

The 2025 strategy is focused around three growth drivers, ‘Expand the portfolio’, ‘Extend customer reach’ and ‘Focussed market strategies’ and is supported by four growth enablers, which are aligned with the Company’s purpose domains, namely creations, nature, people and communities. These three growth drivers and four enablers are all underpinned by a commitment to ‘Excellence, Innovation and Simplicity in everything we do’.

Ambitious targets are an integral part of Givaudan’s 2025 strategy, with the Company aiming to achieve organic sales growth of 4-5% on a like-for-like basis and free cash flow of at least 12%, both measured as an average over the five-year period strategy cycle. In addition, the Company aims to deliver on key non-financial targets around sustainability, diversity and safety, linked to Givaudan’s purpose.

Givaudan’s purpose

The Company’s purpose, ‘Creating for happier, healthier lives with love for nature. Let’s imagine together’, is at the heart of its strategy. Under the purpose, Givaudan has defined bold and ambitious goals in four domains, namely creations, nature, people and communities. These ambitions include doubling its business through creations that contribute to happier, healthier lives by 2030, becoming climate positive before 2050, becoming a leading employer for inclusion before 2025 and sourcing all materials and services in a way that protects the environment and people by 2030.

Key figures

For the six months ended 30 June in millions of Swiss francs except for earnings per share data	2021	2020
Group Sales	3,373	3,221
Fragrance & Beauty sales	1,564	1,456
Taste & Wellbeing sales	1,809	1,765
Gross profit	1,480	1,359
as % of sales	43.9%	42.2%
EBITDA²	809	734
as % of sales	24.0%	22.8%
Operating income	613	532
as % of sales	18.2%	16.5%
Income attributable to equity holders of the parent	481	413
as % of sales	14.3%	12.8%
Earnings per share − basic (CHF)	52.19	44.81
Operating cash flow ^a	415	389
as % of sales	12.3%	12.1%
Free cash flow	186	178
as % of sales	5.5%	5.5%

After careful consideration with the Group auditors, the Group has determined that purchase and sale of own equity instruments relates to financing activities and has been reclassified from cash flows from (for) operating activities into cash flows from (for) financing activities.

in millions of Swiss francs, except for employee data	30 June 2021	31 December 2020
– Current assets	3,606	3,299
– Non-current assets	7,736	7,359
Total assets	11,342	10,658
– Current liabilities	2,414	1,796
– Non-current liabilities	5,262	5,354
– Equity	3,666	3,508
Total liabilities and equity	11,342	10,658
Number of employees	16,130	15,852

Sales performance – January to June

in millions of Swiss francs	2020		2021	Change %			2021	Change %
	Sales as reported	Like-for-like development ¹	Sales like-for-like¹	on like-for-like basis ¹	Acquisition impact (net)^a	Currency effects	Sales as reported	in Swiss francs
Group	3,221	255	3,476	7.9%	(9)	(94)	3,373	4.7%
– Fragrance & Beauty	1,456	147	1,603	10.1%	8	(47)	1,564	7.4%
– Taste & Wellbeing	1,765	108	1,873	6.1%	(17)	(47)	1,809	2.5%

a. Acquisition impact (net)

in millions of Swiss francs

Acquired Company	Sales included from	Group	Fragrance & Beauty	Taste & Wellbeing
Ungerer	February 2020	13	4	9
Cosmetics business of Indena	May 2020	4	4
Myrissi	April 2021	–	–
Discontinued and disposed business		(26)		(26)
Total		(9)	8	(17)

Sales performance – April to June (quarter only)

	2020		2021	Change %			2021	Change %
in millions of Swiss francs	Sales as reported	Like-for-like development¹	Sales like-for-like¹	on like-for-like basis¹	Acquisition impact (net)	Currency effects	Sales as reported	in Swiss francs
Group	1,602	130	1,732	8.1%	(11)	(22)	1,699	6.1%
Fragrance & Beauty	711	73	784	10.2%	2	(10)	776	9.1%
Taste & Wellbeing	891	57	948	6.4%	(13)	(12)	923	3.6%

Sales evolution by market – January to June

	2020		2021	Change %			2021	Change %
in millions of Swiss francs	Sales as reported	Like-for-like development ¹	Sales like-for-like¹	on like-for-like basis¹	Acquisition impact (net)	Currency effects	Sales as reported	in Swiss francs
Mature markets	1,868	115	1,983	6.1%	(6)	(39)	1,938	3.7%
High growth markets	1,353	140	1,493	10.4%	(3)	(55)	1,435	6.1%

Sales evolution by region – January to June

in millions of Swiss francs	2020 Sales as reported	2021 Sales as reported	Change % on like-for-like basis¹	Change % in Swiss francs
LATAM	338	365	21.2%	8.0%
APAC	816	851	6.3%	4.3%
NOAM	901	924	7.5%	2.5%
EAME	1,166	1,233	5.5%	5.7%

Givaudan Fragrance & Beauty

Fragrance & Beauty sales were CHF 1,564 million, an increase of 10.1% on a like-for-like basis and an increase of 7.4% in Swiss francs over 2020. This double-digit sales growth was mainly driven by the strong rebound of the Fine Fragrances and Active Beauty businesses, which were particularly impacted by the COVID-19 pandemic in the first half of 2020.

Total sales for Fragrance Compounds (Fine Fragrances and Consumer Products combined) increased by 9.4% on a like-for-like basis. In Swiss francs, sales of compounds increased to CHF 1,335 million from CHF 1,252 million in 2020.

Fine Fragrance sales increased by 34.5% on a like-for-like basis driven by a significant rebound on prestige fragrances and speciality retail. Particularly in the second quarter of 2021 the sales performance showed a very positive development, compared to a period in 2020 which experienced a strong reduction in demand as the COVID-19 pandemic severely restricted traditional retail channels in the major fine fragrance markets.

Consumer Products sales increased by 4.1% on a like-for-like basis, against a strong prior year comparable growth of 11.8%, which saw a strong demand for household, health and personal care products related to the onset of the COVID-19 pandemic. The growth in the first half of 2021 was driven by existing business and the contribution from new wins.

Sales of Fragrance Ingredients and Active Beauty delivered growth of 14.4% on a like-for-like basis against a slight decline of 0.1% reported in the first half of 2020.

The EBITDA of Fragrance & Beauty increased to CHF 375 million in 2021 compared to CHF 333 million for the first six months of 2020. The increase was mainly driven by higher sales and the contribution of the recent acquisitions in terms of growth and synergies. The EBITDA margin increased to 24.0% in 2021 from 22.9% in 2020. On a comparable basis the EBITDA margin of the Fragrance & Beauty was 24.2% in 2021 compared to 23.4% in 2020.

The operating income increased by 13.7% to CHF 301 million in 2021, versus CHF 264 million for the same period in 2020. The operating margin increased to 19.2% in 2021 from 18.2% in 2020.

Fine Fragrances

Fine Fragrances sales increased by 34.5% on a like-for-like basis against the first half of 2020, where sales declined by 16.4% due to the impact of the COVID-19 pandemic. In the first six months of 2021 there was a strong rebound of the existing business across all customer groups. In addition, new business wins contributed to this strong performance bringing overall sales to levels above the pre-pandemic period.

All regions delivered strong double-digit sales growth. In the Western Europe region, the customers of prestige brands showed a very strong rebound after having suffered strongly from the COVID-19 pandemic, particularly in the first half of 2020. North America and high growth markets also recorded strong double-digit sales growth.

Consumer Products

Consumer Products sales increased by 4.1% on a like-for-like basis against a strong prior year comparable growth of 11.8%, which was driven by an increased demand for household, health and personal care products related to the onset of the COVID-19 pandemic. The growth in the first half of 2021 was achieved in both high growth and mature markets and across all customer groups.

On a regional basis, Latin America reported double-digit growth driven by new wins. Asia recorded mid-single-digit growth, with strong double-digit growth in the Greater China region, driven by local and regional customers and spread across most product segments. Europe, Africa and the Middle East sales were almost flat versus a double-digit prior year comparable, led by international customers and growth in the African and Middle East sub-region. The sales increase in North America was supported by double-digit growth with local and regional customers.

On a product segment basis, the sales growth was led by Fabric Care followed by Personal Care and Home Care.

Fragrance Ingredients and Active Beauty

Sales of Fragrance Ingredients and Active Beauty grew by 14.4% on a like-for-like basis, against a slight sales decline of 0.1% in the prior year. Active Beauty saw a very strong rebound in the first half of the year and reported strong double-digit growth in both high growth and mature markets. Fragrance Ingredients reported strong single-digit growth driven by key international and local and regional customers.

Givaudan Taste & Wellbeing

Taste & Wellbeing sales were CHF 1,809 million, an increase of 6.1% on a like-for-like basis and an increase of 2.5% in Swiss francs.

The strong sales performance was driven by new wins and good business momentum across all regions and mainly with local and regional customers. Whilst the sales performance was still affected by the impact of the COVID-19 pandemic across many countries, there were positive signs of recovery in certain markets where increased vaccination rates and progressive reopening resulted in higher demand for foodservice products, particularly in the second quarter of 2021.

In the key strategic focus areas, sales increased double-digit in plant-based proteins and high single-digit in health & wellness and Naturals.

From a segment perspective the positive sales performance was mainly driven by Beverages, Savoury and Snacks.

The EBITDA of Taste & Wellbeing increased to CHF 434 million from CHF 401 million in 2020, an increase of 8.4%, with continuing productivity gains and cost discipline contributing to the increase. The EBITDA margin increased to 24.0% in 2021, from 22.7% in 2020. On a comparable basis the EBITDA margin of Taste & Wellbeing was 24.3% in 2021 compared to 23.8% in 2020.

The operating income increased to CHF 312 million in 2021 from CHF 268 million in 2020, an increase of 16.7%. The operating margin increased to 17.3% in 2021 compared to 15.2% in 2020.

Asia Pacific

Sales in Asia Pacific increased by 5.1% on a like-for-like basis. In the high growth markets, China and Malaysia delivered strong double-digit performance, followed by solid single-digit growth in the Philippines and Vietnam, whilst Indonesia and Thailand were still impacted by the COVID-19 pandemic. In the mature markets, growth was driven by Australia, Korea and Singapore.

From a segment perspective the growth was mainly achieved in Beverages, Dairy, Sweet Goods and Savoury.

South Asia, Africa and the Middle East (SAMEA)

Sales in South Asia, Africa and the Middle East increased by 3.5% on a like-for-like basis. Double-digit growth was achieved in India, Algeria and Nigeria, which was partially offset by South Africa, where there is still a heavy impact from the COVID-19 pandemic and the Middle East. The sales growth in the region was driven by the Beverages and Dairy segments.

Europe

Sales in Europe increased by 1.7% on a like-for-like basis. The mature markets of Germany, Italy, Spain and Sweden all achieved good single-digit sales growth, whilst in the high growth markets there was excellent business momentum driven by double-digit growth in Russia and Poland. Throughout the first half of 2021 the region was still impacted by the restrictions related to the COVID-19 pandemic with some relaxation in those measures being seen only more recently in a number of countries. The growth was mainly achieved in the segments of Beverages, Savoury and Snacks.

North America

On a like-for-like basis, sales in North America increased by 6.1% across all customer segments. The strong performance was a result of new wins, a rebound in Foodservice and the growth of existing business in Beverages, Immunity Products, Savoury, and Sweet Goods.

Latin America

Sales in Latin America increased 23.4% on a like-for-like basis, led by strong double-digit volume growth in Mexico, Brazil, Columbia, Chile and Argentina, and across all segments.

The Group has aligned the reporting of the regional performance of Givaudan Taste & Wellbeing with changes in the management structure of the business, effective 1 January 2021. For information, the comparable growth for the first six months of 2020 for South Asia, Africa and the Middle East was 5.1% and for Europe 2.2% respectively.

The 2021 Half Year Report can be downloaded on www.givaudan.com. A conference call will be broadcast on www.givaudan.com on Thursday 22 July 2021 at 15:00 CEST.

Notes

Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c) excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period.
EBITDA defined as Earnings before interest (and other financial income (expense), net), Tax, Depreciation and Amortisation, corresponds to operating income before depreciation, amortisation and impairment of long-lived assets.
Comparable EBITDA is the reported EBITDA, as adjusted for significant items of a non-recurring nature which have an impact on the understanding of the underlying normal operating activities.
Free cash flow (FCF) refers to operating cash flow after net investments, interest paid, lease payments and purchase and sale of own equity instruments.
Leverage ratio is defined as net debt divided by the sum of net debt and equity (as defined for leverage ratio).

Further information and reconciliations of the Group’s Alternative Performance Measures can be found in the Appendix of the 2021 Half year report.

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Givaudan’s Calice Becker receives prestigious Lifetime Achievement Perfumer Award from The Fragrance Foundation (TFF)

Christine Schott Ledes — Sat, 12 Jun 2021 21:02:10 +0000

Calice Becker, Vice President Perfumer and Director of the Givaudan Perfumery School, is the recipient of the 2021 Fragrance Foundation’s Lifetime Achievement Perfumer Award for her celebrated career and visionary leadership in advancing the art of perfumery. TFF’s Lifetime Achievement Perfumer Award was presented in front of a global audience during a virtual event on 10 June 2021.

Givaudan CEO Gilles Andrier commented: “I am honored to present this award on behalf of TFF to Calice Becker in recognition of her enduring success as a perfumer whose creations have marked their era, along with her extraordinary leadership and dedication to the art and science of perfumery.”

Linda G. Levy, President, TFF said: “We are proud to honor Calice Becker for all she has achieved in perfumery and continues to contribute to its future. Every perfumer’s work is special; with this award we recognize those masters of the craft whose creations have made a significant contribution to the fragrance industry.” Calice Becker’s creative success is exceptional in its depth across the United States and Europe where she has created such iconic fragrances as J’adore by Christian Dior, Intoxicated by Kilian, Velvet Orchid by Tom Ford, Dylan Blue by Versace, and Tommy Girl by Tommy Hilfiger. She has received numerous international accolades, notably the French ‘Médaille de Chevalier dans l’ordre des Arts et des Lettres’ for her contribution to the arts through perfumery.

Accepting the award, Becker said: “I am honored to be in the company of the extraordinary perfumers who have received this award before me, and encouraged in my continued dedication to the future of perfumery. I wish to express my gratitude to The Fragrance Foundation for their impressive work in supporting perfumers and inspiring the world through fragrance.” Calice Becker received her perfumery training at Roure in Grasse in 1985, leading her to Givaudan where she has passionately contributed as a perfumer for over 35 years. She was appointed Director of the Givaudan Perfumery School in 2017 where she leads the training and development of future perfumery artists. Calice combines her dedication for sharing her knowledge of creation as well as her constant quest to enhance the creative process, for example through the development of algorithms and creative interfaces for future perfumers. Calice has also been the President of the ‘Société Internationale des Parfumeurs Créateurs’ for more than four years, where she campaigns to safeguard the art of fragrance creation.

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Givaudan Recognized for Second Year on Prestigious CDP A List for Leadership in Global Climate Action and Water Stewardship

Christine Schott Ledes — Thu, 10 Dec 2020 22:12:59 +0000

Givaudan’s leading work on climate action and water stewardship has once again been recognized with a CDP double A rating.

CDP’s annual environmental disclosure and scoring process is widely recognized as the gold standard of corporate environmental transparency.

Givaudan’s most recent A ratings place it in the best performing businesses out of 5,800+ businesses that were scored, when it comes to leadership on climate and water, as the organization strives to use its business as a force for good.

Gilles Andrier

Gilles Andrier, CEO of Givaudan comments: “Taking action to protect our natural resources has never been so urgent. We’re proud to be leading the way with bold ambitions driven by our purpose, such as becoming climate positive before 2050 and we’re delighted to see this work recognised once again with a CDP double A rating.

“As we rise to these major global challenges, it is vital we continue use our business as a force for good and that we live our purpose in the actions we take every day to protect nature.”

Paul Simpson, CEO of CDP, said: “We extend our congratulations to all the companies on this year’s A List. Taking the lead on environmental transparency and action is one of the most important steps businesses can make, and is even more impressive in this challenging year marked by COVID-19. The scale of the risk to businesses from climate change, deforestation and water insecurity is enormous, and we know the opportunities of action far outweigh the risks of inaction. Leadership from the private sector will create an ‘ambition loop’ for greater government action and ensure that global ambitions for a net zero sustainable economy become a reality. Our A List celebrates those companies who are preparing themselves to excel in the economy of the future by taking action today.”

The rating follows a series of high profile accolades in 2020 recognizing Givaudan’s leading work on sustainability and responsible business. These include a platinum EcoVadis rating in November as well as Givaudan’s inclusion for the fifth year running in the prestigious FTSE4Good Index Series earlier this year.

In July 2020 Givaudan announced its journey towards B Corp certification and in August 2020 the company became a founding member of B Movement Builders. B Movement Builders is a coalition of publicly-traded companies working together to drive a global movement of business as a force for good, helping to accelerate change to our global economic system and spearheading the changing role of business in society.

The full methodology and criteria for the A List is available on CDP’s website at: www.cdp.net/en/companies/companies-scores.

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Givaudan Awarded Platinum Medal in EcoVadis Corporate Social Responsibility Assessment

Christine Schott Ledes — Tue, 24 Nov 2020 12:11:45 +0000

Givaudan has been ranked in the top 1% of the EcoVadis Corporate Social Responsibility (CSR) assessment 2020, achieving its highest accolade; the platinum medal.

The EcoVadis assessment evaluates how well a company has integrated the principles of CSR into its business and management systems. It examines categories including environment, labour and human rights, ethics and sustainable procurement and assesses the performance of companies across multiple sectors. EcoVadis introduced its new platinum medal for the first time this year.

The assessment highlighted Givaudan’s particular strengths in the categories of labour and human rights, and sustainable procurement, with scores in the top 1%. Overall, Givaudan achieved a score of 75/100, three points higher than its score from 2019.

Gilles Andrier, CEO of Givaudan comments: “We are extremely proud to have achieved platinum status in recognition for our work on Corporate Social Responsibility. As we strive to be a force for good, our teams continue to work incredibly hard to achieve our ambitious sustainability and purpose goals. EcoVadis is a stringent, independent assessment of this work and we are delighted to see these efforts recognised with our new rating.”

Givaudan has been recognised in EcoVadis’ top performing category for the past 6 years. As part of Givaudan’s ongoing focus on using its business as a force for good, the business announced in July that it is on a journey towards B Corp certification. In August, Givaudan became a founding member of B Lab’s B Movement Builders; a brand new movement of publicly-traded organisations helping to redefine the future role of business in society.

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Givaudan Opens Fragrance Production Facility in Changzhou

Christine Schott Ledes — Mon, 19 Oct 2020 01:53:54 +0000

Givaudan has opened its newest fragrance production facility in Changzhou, China. In line with the recently announced 2025 strategy, “Committed to Growth, with Purpose,” China remains a key growth market for fragranced products.

The Changzhou production facility, costing more than CHF 100 million and constructed on a land area of 76,000 m², is outfitted with an advanced auto-dosing system, which allows for high accuracy and efficiency as well as an agile manufacturing environment.

Consistent with Givaudan’s global manufacturing processes, the production facility meets the highest global and local standards in fragrance manufacturing including advanced environmental, health and safety features. It will increase the company’s existing manufacturing output spanning personal, home and fabric care fragrances through to oral care flavors, encapsulated fragrances and prestige perfumes to serve customers in China and Asia Pacific.

With Givaudan’s purpose as the cornerstone, the new facility will contribute to Givaudan’s climate action agenda. The production facility is equipped with energy-efficient facilities such as centralized chillers, variable speed drive motors and compressors as well as light emitting diode (LED) lights.

A solar power project expected to complete by early 2021 will also contribute to the company’s commitment to use 100% renewable electricity by 2025.

Givaudan CEO Gilles Andrier said, “Opening this production facility in China—an important high growth market—demonstrates our commitment to our customers and aligns to our 2025 strategy and purpose. This investment will strengthen our position as a strategic partner to our customers in the region and will cater to the increasing consumer demands for great smelling sustainable fragrances.”

Yaling Li, Head of Fragrances China and Korea, added, “Expanding our manufacturing capabilities builds on our current creative center and production facility in Shanghai, as well as the recently acquired drom creative center and production site in Guangzhou, giving Givaudan an unparalleled footprint in China. We are very well positioned to offer our customers a comprehensive end-to-end solution for the region in the creation, development and production of fragrances that consumers love.”

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Givaudan Posts Strong 2020 Half Year Results

Christine Schott Ledes — Fri, 24 Jul 2020 14:18:37 +0000

Givaudan Group sales for the first six months of the year were CHF 3,221 million, an increase of 4.0% on a like-for-like basis and 4.1% in Swiss francs.

Fragrance Division sales were CHF 1,456 million, an increase of 4.5% on a like-for-like basis and 7.0% in Swiss francs.

Flavour Division sales were CHF 1,765 million, an increase of 3.6% on a like-for-like basis and 1.9% in Swiss francs.

As the COVID-19 pandemic continues to have an impact on a global level, Givaudan sustained strong business momentum whilst maintaining its operations and global supply chain with minimal disruption. The good growth was achieved across most product segments and geographies, with particularly strong performance in household, health and personal care segments within the Fragrance division, as well as in packaged foods, savoury, snacks and nutraceuticals in the Flavour division. In the product segments most affected by the COVID-19 pandemic, namely Fine Fragrance and to a lesser extent Active Beauty in the Fragrance division and Foodservice in the Flavour division, the Group experienced a significant reduction in business activity in the months from March through June, as the restrictions related to the COVID-19 pandemic restricted retail and travel retail activity as well as out-of-home food consumption.

“Our strong performance in the first half of 2020 demonstrates our market leadership and the important role that we play in sustaining the global supply chain in food and beverage as well as in household, health and personal care products,” said CEO Gilles Andrier. “I am very proud of the entire Givaudan organisation for their dedication during this challenging period and for enabling us to continue to support our customers to keep critical products available to consumers throughout the COVID-19 crisis.”

In the continuing challenging environment related to the COVID-19 crisis and in line with the Company’s purpose, Givaudan is strongly focused on:

Protecting and supporting its employees. Be it those on site or those who are still working from home;
Meeting the demands of its customers. Particularly for those products which support consumers throughout the pandemic around the world;
Taking care of the communities in which it operates. In the early stages of the COVID-19 pandemic, the Company established the Givaudan COVID-19 Communities Fund to enable Givaudan sites to support local communities that are being affected around the world. Givaudan committed to donate at least CHF 1 million to this fund and to date, over 120 initiatives across 40 countries have been launched.

Gross Profit

The gross profit increased by 6.7% from CHF 1,274 million in 2019 to CHF 1,359 million in 2020. Due to continued productivity gains and cost discipline, the gross margin increased to 42.2% in 2020 compared to 41.2% in 2019.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)²

The EBITDA increased by 11.3% to CHF 734 million from CHF 660 million for the same period in 2019, whilst the EBITDA margin was 22.8% in 2020 compared to 21.3% in 2019. On a comparable basis, the EBITDA margin was 23.7% in 2020 compared to 22.3% in 2019.

In 2020, the Group incurred costs of CHF 4 million in relation to the implementation of the Givaudan Business Solutions organisation, compared with CHF 19 million in 2019.

In millions of Swiss francs

	2020			2019
	Group	Fragrance	Flavour	Group	Fragrance	Flavour
EBITDA as published	734	333	401	660	270	390
EBITDA as published in %	22.8	22.9	22.7	21.3	19.8	22.5
Givaudan Business Solutions (GBS) costs	-4	-4		-19	-19
Acquisition and restructuring expenses^a	-24	-4	-20	-11		-11
Comparable EBITDA³	762	341	421	690	289	401
Comparable EBITDA in %	23.7	23.4	23.8	22.3	21.3	23.1

Acquisition and restructuring expenses incurred of CHF 24 million (2019: CHF 11 million) are largely related to the acquisitions that the Group has undertaken and the ongoing optimisation of the manufacturing footprint.

Operating Income

The operating income increased to CHF 532 million, compared to CHF 491 million in 2019. When measured in local currency terms, the operating income increased by 18.9%. The operating margin increased to 16.5% in 2020 from 15.9% in 2019.

Financial Performance

Financing costs were CHF 39 million in the first half of 2020, versus CHF 36 million for the same period in 2019, largely related to the increase in net debt of the Group in connection with the recent acquisitions. Other financial expense, net of income, was CHF 13 million in 2020 versus CHF 18 million in 2019.

The interim period income tax expense as a percentage of income before taxes was 14% in 2020, compared with 13% for the same period in 2019.

Net Income

The net income for the first six months of 2020 was CHF 413 million compared to CHF 380 million in 2019, an increase of 8.8%, resulting in a net profit margin of 12.8% versus 12.3% in 2019. Basic earnings per share were CHF 44.81 versus CHF 41.24 for the same period in 2019.

Cash Flow

Givaudan delivered an operating cash flow of CHF 359 million for the first six months of 2020, compared to CHF 271 million in 2019.

Net Working capital was 27.9% of sales compared to 27.3% in 2019, with temporarily higher accounts receivable and inventory levels related to the COVID-19 pandemic.

Total net investments in property, plant and equipment were CHF 122 million, compared to CHF 77 million in 2019, as the Group continues to invest in expanding its capabilities in high growth markets. As a reminder, in 2018 the Group completed an agreement to sell and leaseback the Zurich Innovation Centre (ZIC) for a total consideration of CHF 173 million, of which CHF 60 million was received in the first six months of 2019.

Intangible asset additions were CHF 17 million in 2020, compared to CHF 17 million in 2019, as the Company continues to invest in its IT platform capabilities.

Total net investments in tangible and intangible assets were 4.3% of sales, compared to 3.0% in 2019. Excluding the impact of the ZIC transaction, total net investments in tangible and intangible assets in 2019 would have been 4.6% of sales.

Operating cash flow after net investments was CHF 220 million versus CHF 177 million recorded in 2019, an increase of 24.3%. Free cash flow⁴ was CHF 178 million in the first half of 2020, versus CHF 148 million for the comparable period in 2019, an increase of 20.3%. As a percentage of sales, free cash flow in the first six months of 2020 was 5.5%, compared to 4.8% in 2019.

Financial Position

Givaudan’s financial position remained solid at the end of June 2020. Net debt at June 2020 was CHF 4,631 million, up from CHF 3,679 million at December 2019, with the increase driven by the acquisition of Ungerer in the first quarter of 2020. The leverage ratio⁵ was 56% compared to 47% at the end of 2019.

2020 guidance: Responsible growth. Shared success.

The Company’s 2020 ambition is to create further value through profitable, responsible growth. Building on the first four years of this strategic cycle, Givaudan’s 2020 ambition is defined around the three strategic pillars of ‘Growing with our customers’, ‘Delivering with excellence’ and ‘Partnering for shared success’.

As part of the Company’s 2020 strategy, Givaudan also seeks to create value through targeted acquisitions, which complement existing capabilities in providing winning solutions for its customers. Since 2014, Givaudan has announced sixteen acquisitions, which are fully in line with the growth pillars within the Company’s 2020 strategy.

Ambitious financial targets are a fundamental part of Givaudan’s strategy. We aim to outpace the market with 4-5% sales growth and a free cash flow of 12-17% of sales, both measured as an average over the five-year period of our strategy cycle. It is Givaudan’s intention to maintain its current dividend practice as part of this ambition.

Givaudan’s purpose

Key Figures

For the six months ended 30 June
in millions of Swiss francs except for earnings per share data

	2020	2019
Group sales	3,221	3,094
– Fragrance sales	1,456	1,361
– Flavour sales	1,765	1,733
Gross profit	1,359	1,274
– as % of sales	42.2%	41.2%
EBITDA²	734	660
– as % of sales	22.8%	21.3%
Operating income	532	491
– as % of sales	16.5%	15.9%
Income attributable to equity holders of the parent	413	380
– as % of sales	12.8%	12.3%
Earnings per share – basic (CHF)	44.81	41.24
Earnings per share – diluted (CHF)	44.48	40.94
Operating cash flow	359	271
– as % of sales	11.1%	8.8%
Free cash flow⁴	178	148
– as % of sales	5.5%	4.8%

In millions of Swiss francs, except for employee data

	30 June 2020	31 December 2019
– Current assets	3,512	3,242
– Non-current assets	7,403	7,154
Total assets	10,915	10,396
– Current liabilities	2,382	1,830
– Non-current liabilities	5,370	4,907
– Equity	3,163	3,659
Total liabilities and equity	10,915	10,396
Number of employees	15,847	14,969

Sales Performance – January to June

In millions of Swiss francs

	2019 Sales as reported	Like-for-like development ¹	2020 Sales like-for-like ¹	Change % on like-for-like basis ¹	Acquisition impact (net)^a	Currency effects	2020 Sales as reported	Change % in Swiss francs
Group	3,094	125	3,219	4.0%	194	(192)	3,221	4.1%
– Fragrance	1,361	62	1,423	4.5%	127	(94)	1,456	7.0%
– Flavour	1,733	63	1,796	3.6%	67	(98)	1,765	1.9%

Acquisition impact (net)

In millions of Swiss francs

Acquired Company	Sales included from	Group	Fragrance	Flavour
Albert Vieille	May 2019	4	4
Golden Frog	September 2019	6		6
Drom	September 2019	62	62
Fragrance Oils	September 2019	31	31
Ungerer	February 2020	96	30	66
Discontinued and disposed business		(5)		(5)
Total		194	127	67

Sales Performance – April to June (quarter only)

In millions of Swiss francs

	2019 Sales as reported	Like-for-like development ¹	2020 Sales like-for-like ¹	Change % on like-for-like basis ¹	Acquisition impact (net)	Currency effects	2020 Sales as reported	Change % in Swiss francs
Group	1,569	43	1,612	2.8%	101	(111)	1,602	2.1%
– Fragrance	684	19	703	2.8%	64	(56)	711	4.0%
– Flavour	885	24	909	2.7%	37	(55)	891	0.7%

Sales Evolution by Market – January to June

In millions of Swiss francs

	2019 Sales as reported	Like-for-like development ¹	2020 Sales like-for-like ¹	Change % on like-for-like basis ¹	Acquisition impact (net)	Currency effects	2020 Sales as reported	Change % in Swiss francs
Mature markets	1,802	9	1,811	0.5%	128	(71)	1,868	3.4%
High growth markets	1,292	116	1,408	9.0%	66	(121)	1,353	5.1%

Sales evolution by region – January to June

In millions of Swiss francs

	2019 Sales as reported	2020 Sales as reported	Change % on like-for-like basis ¹	Change % in Swiss francs
LATAM	346	338	15.5%	-0.6%
APAC	788	816	3.9%	3.3%
NA	838	901	2.7%	6.8%
EAME	1,122	1,166	1.7%	4.0%

Fragrance Division

Fragrance Division sales were CHF 1,456 million, an increase of 4.5% on a like-for-like basis and an increase of 7.0% in Swiss francs over 2019. Sales growth was driven by the particularly strong volume growth of the consumer products business unit, despite the impact on Fine Fragrances related to the COVID-19 pandemic.

Total sales for Fragrance Compounds (Fine Fragrances and Consumer Products combined) increased by 5.3% on a like-for-like basis. In Swiss francs, sales of compounds increased to CHF 1,252 million from CHF 1,171 million in 2019.

Fine Fragrance sales decreased by 16.4% on a like-for-like basis driven by a significant reduction of activity in retail stores and travel retail related to COVID-19. After a strong start to the year, driven by new wins and existing products, the months of March through June experienced a strong reduction in demand as the COVID-19 pandemic severely restricted traditional retail channels in the major Fine Fragrance markets.

Consumer Products sales increased by 11.8% on a like-for-like basis, against 8.7% for the same period in 2019, with strong demand for household, health and personal care products related to COVID-19. The excellent growth was delivered in both high growth and mature markets and was spread across all customer groups and regions.

Sales of Fragrance Ingredients and Active Beauty were almost flat with a reported reduction of 0.1% on a like-for-like basis, against a strong comparable growth of 8.2% in 2019.

The EBITDA of the Fragrance Division increased to CHF 333 million in 2020 compared to CHF 270 million for the first six months of 2019. The increase was mainly driven by higher sales, the contribution of the recent acquisitions and the result of the actions taken to contain operating expenses. The EBITDA margin increased to 22.9% in 2020 from 19.8% in 2019. On a comparable basis the EBITDA margin of the Fragrance Division was 23.4% in 2020 compared to 21.3% in 2019.

In the first six months of 2020 the division incurred costs associated with the GBS project of CHF 4 million, compared to CHF 19 million in 2019.

The operating income increased by 23.8% to CHF 264 million in 2020, versus CHF 213 million for the same period in 2019. The operating margin increased to 18.2% in 2020 from 15.7% in 2019.

Fine Fragrances

Fine fragrance sales decreased by 16.4% on a like-for-like basis against a strong comparable of 8.5% growth in 2019. These results were impacted by the COVID-19 outbreak driving high levels of business erosion across all customer groups and regions due to the restricted activities in retail and travel retail channels.

On a regional basis, sales performance in Western Europe was negatively impacted by the overall slowdown in demand from customers, while sustained levels of new business wins in North America were offset by established volume decline. In the high-growth markets, double-digit sales growth in Latin America was offset by weaker performance in Asia and the Middle East.

Consumer Products

Consumer Products sales increased by 11.8% on a like-for-like basis with excellent growth across all customer groups and geographies, supported by increased consumption of household, health and personal care products related to COVID-19.

On a regional basis, Latin America reported double-digit growth across all customer groups and most sub-regions. Asia recorded good growth led by strong double-digit growth with local and regional customers. Europe, Africa and the Middle East delivered double-digit sales increase across all product segments led by local and regional customers, as well as strong double-digit growth in the African and Middle East sub-region. North America posted double-digit growth spread across all products segments with strong performance of international customers.

On a product segment basis, sales growth was led by double-digit growth in Home Care and Fabric Care, followed by solid performance in Personal Care.

Fragrance Ingredients and Active Beauty

Sales of Fragrance Ingredients and Active Beauty were almost flat with a reported decline of 0.1% on a like-for-like basis, against a strong comparable growth of 8.2% in 2019. Active Beauty performed relatively well in difficult market conditions related to COVID-19, with a minimal sales reduction thanks to its well balanced portfolio of products and customers. Fragrance Ingredients experienced a moderate single digit growth driven by Local & Regional customers.

Flavour Division

Flavour Division sales were CHF 1,765 million, an increase of 3.6% on a like-for-like basis and 1.9% in Swiss francs.

The sales performance was driven by both new wins and existing products with strong business momentum across all regions coming from both Global and Local and Regional customers.

The key strategic focus areas of the 2020 strategy, namely Health and Well-Being and Naturals grew at double-digit and single-digit levels respectively.

Linked to the COVID-19 pandemic, the Flavour divisions experienced a shift in demand from Foodservice and alcoholic beverages into established products in categories such as Juice Based Beverages, Culinary Solutions, Nutritional Bars, Savoury and Snacks.

From a segment perspective Dairy, Sweet Goods, Savoury and Snacks were the main contributors to the division growth.

The EBITDA increased to CHF 401 million from CHF 390 million in 2019, an increase of 2.8%, with continuing productivity gains and cost discipline contributing to the increase. The EBITDA margin was 22.7% in 2020, up from 22.5% in 2019. On a comparable basis the EBITDA margin of the Flavour Division was 23.8% in 2020 compared to 23.1% in 2019.

The operating income decreased to CHF 268 million in 2020 from CHF 278 million in 2019, a decrease of 3.5%. The operating margin was 15.2% in 2020 compared to 16.0% in 2019.

Asia Pacific

Sales in Asia Pacific grew by 2.4% on a like-for-like basis, against a comparable growth of 6.2% in 2019. The high-growth markets of Thailand and China delivered strong double-digit performance, whilst India, Indonesia and Malaysia were heavily impacted by the COVID-19 crisis. In the mature markets, growth was driven by Japan, Korea and Singapore.

From a customer perspective in Asia Pacific, there was a shift towards Global and International customers, which were less impacted by the COVID-19 crisis compared to Local and Regional customers. From a segment perspective, Savoury, Snacks and Sweet Goods contributed significantly to the growth.

Europe, Africa and the Middle East

Sales in Europe, Africa and the Middle East increased by 3.4% on a like-for-like basis. In the high-growth markets of Africa and the Middle East, double-digit growth was achieved in Algeria, Egypt and Cameroon followed by the Middle East with good single-digit growth. Growth in Central and Eastern Europe was led by Russia and Turkey. In the mature markets of Western Europe, we saw very good momentum driven by France, the Netherlands, Belgium and Sweden.

The growth was driven by the Dairy, Savoury and Snacks segments.

North America

On a like-for-like basis, sales in North America increased by 2.8% driven by the good performance of global and local and regional Customers. From a segment perspective good growth was achieved in Beverages, Snacks and Sweet Goods.

Latin America

Sales in Latin America increased by 10.6% on a like-for-like basis, against a strong comparable of 22.8% growth in 2019. The strong growth was achieved across all markets and in the segments of Dairy, Beverage, Savoury and Sweet Goods.

The 2020 Half Year Report can be downloaded on www.givaudan.com. A conference call will be broadcast on www.givaudan.com on Tuesday 21 July 2020 at 15:00 CEST.

NOTES

1. Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c) excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period.

2. EBITDA defined as Earnings before interest (and other financial income (expense), net), Tax, Depreciation and Amortisation, corresponds to operating income before depreciation, amortisation and impairment of long-lived assets.

3. Comparable EBITDA is the reported EBITDA, as adjusted for significant items of a non-recurring nature which have an impact on the understanding of the underlying normal operating activities.

4. Free Cash Flow (FCF) refers to operating cash flow after net investments, interest paid and lease payments.

5. Leverage ratio is defined as net debt divided by the sum of net debt and equity (as defined for leverage ratio).

https://www.givaudan.com/media/media-releases/2020/2020-half-year-results#cnbc-interview

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Givaudan’s 2020 First Quarter Sales Good Start to Year

Christine Schott Ledes — Wed, 15 Apr 2020 02:08:09 +0000

In the first three months of 2020 Givaudan recorded sales of CHF 1,619 million, an increase of 5.4% on a like-for-like¹ basis and 6.1% in Swiss francs.

Fragrance Division sales were CHF 745 million, an increase of 6.3% on a like-for-like¹ basis and an increase of 9.9% in Swiss francs.

Flavor Division sales were CHF 874 million, an increase of 4.6% on a like-for-like¹ basis and an increase of 3.1% in Swiss francs.

As the COVID-19 virus continued to have an impact on a global level, Givaudan started the year with good business momentum whilst maintaining its operations and global supply chain with minimal disruption. The good growth was achieved across most product segments and geographies, with particularly strong performance in household and personal care segments within the Fragrance Division, as well as in packaged foods, savory, snacks and nutraceuticals in the Flavor Division.

Our good start to 2020 demonstrates the important role that we play in sustaining the global supply chain in food and beverage as well as in household, health and personal care products, said CEO Gilles Andrier. I am very proud of the entire Givaudan organization for their dedication during this challenging period and for enabling us to continue to support our customers to keep critical products available to consumers throughout the COVID-19 crisis.

In the current climate, and in line with the Company’s purpose, Givaudan is strongly focused on:

Protecting and supporting its employees, be it those on site or those who are working from home;
Meeting the demands of its customers, particularly for those products which support consumers throughout the pandemic;
Taking care of the communities in which it operates. The Company has established the Givaudan COVID-19 Communities Fund to enable Givaudan sites to support local communities that are being affected around the world and Givaudan is donating at least CHF 1 million to this fund.

As part of the Company’s 2020 strategy, Givaudan also seeks to create value through targeted acquisitions, which complement existing capabilities in providing winning solutions for its customers. Since 2014, Givaudan has completed fourteen acquisitions, which are fully in line with the growth pillars within the Company’s 2020 strategy.

Ambitious financial targets are a fundamental part of Givaudan’s strategy. The Company aims to outpace the market with 4-5% sales growth and a free cash flow² of 12-17% of sales, both measured as an average over the five-year period of our strategy cycle. It is Givaudan’s intention to maintain its current dividend practice as part of this ambition.

Sales January to March

	2019		2020	Change %			2020	Change %
in millions of Swiss francs	Sales as reported	Like-for-like development ¹	Sales like-for-like ¹	on like-for-like basis ¹	Acquisition impact ^a	Currency effects	Sales as reported	in Swiss francs
Group	1,525	82	1,607	5.4%	93	(81)	1,619	6.1%
– Fragrance	677	43	720	6.3%	63	(38)	745	9.9%
– Flavour	848	39	887	4.6%	30	(43)	874	3.1%

Acquisition impact
in millions of Swiss francs

Acquired company	Sales included from	Group	Fragrance	Flavour
Albert Vieille	May 2019	4	4
Golden Frog	September 2019	3		3
Drom	September 2019	31	31
Fragrance Oils	September 2019	16	16
Ungerer	February 2020	39	12	27
Total		93	63	30

Sales evolution by market – January to March

	2019		2020	Change %			2020	Change %
in millions of Swiss francs	Sales as reported	Like-for-like development ¹	Sales like-for-like ¹	on like-for-like basis ¹	Acquisition impact	Currency effects	Sales as reported	in Swiss francs
Mature markets	906	19	925	2.1%	54	(33)	946	4.3%
High growth markets	619	63	682	10.1%	39	(48)	673	8.9%

Sales evolution by region – January to March

	2019	2020	Change %	Change %
in millions of Swiss francs	Sales as reported	Sales as reported	on like-for-like basis ¹	in Swiss francs
LATAM	165	173	17.4%	4.8%
APAC	376	395	4.2%	4.9%
NA	422	452	3.1%	6.8%
EAME	562	599	4.3%	6.8%

Fragrance Division

The Fragrance Division recorded sales of CHF 745 million, a growth of 6.3% on a like-for-like basis and an increase of 9.9% in Swiss francs.

Sales growth was driven by strong volume increases in Consumer Products.

Total sales of Fragrance compounds (Fine Fragrances and Consumer Products combined) increased by 6.6% on a like-for-like basis. In Swiss francs, sales of compounds increased by 9.6% to CHF 638 million in 2020, compared with CHF 582 million in 2019.

Fine Fragrance sales increased by 1.9% on a like-for-like basis against a high comparable of 10.3% in 2019.

The Fine Fragrance business had a strong start to the year driven by both new wins and existing products but experienced a strong reduction in March as its customers experienced a lack of activity in retail stores and in travel retail due to the COVID-19 impact.

Consumer Products sales increased by 8.0% on a like-for-like basis with excellent growth across all customer groups and geographies.

On a regional basis, Latin America reported double-digit growth across all customer groups and most sub-regions. Asia Pacific recorded good growth led by strong double-digit growth with local and regional customers. Europe, Africa and the Middle East delivered a solid sales increase across all customer groups and product segments, driven by double-digit growth in the African and Middle East sub-region. North America recorded good growth, despite a high double-digit comparable in 2019, with strong performance of international customers.

On a product segment basis, the excellent sales growth was led by a double-digit increase in Fabric Care and solid performance in Home and Personal Care.

Sales of Fragrance Ingredients and Active Beauty increased by 4.5% on a like-for-like basis. Active Beauty delivered positive growth against a very strong comparable in 2019. Active Beauty delivered good growth in high growth markets, which was partially offset by lower growth in mature markets. Sales of Fragrance Ingredients delivered good growth against a strong comparable in 2019.

Flavor Division

The Flavor Division reported sales of CHF 874 million, a growth of 4.6% on a like-for-like basis and an increase of 3.1% in Swiss francs.

The sales performance was driven by new wins and good business momentum across all regions and customer groups. The key strategic focus areas of the 2020 strategy, namely Health and well-being and Naturals grew at double-digit and single-digit levels respectively.

From a segment perspective, Beverages, Snacks, Savory and Sweet Goods all contributed to the positive sales performance, driven by increased customer demand for existing products.

Asia Pacific

Sales in Asia Pacific increased by 2.5% on a like-for-like basis. In the high growth markets, Thailand delivered double-digit growth followed by solid single-digit growth in China. In the mature markets, Singapore delivered strong double-digit growth followed by strong single-digit growth in Japan and Korea.

The overall result of the region for the first three months of 2020 was impacted by the challenges related to the COVID-19 outbreak, however, the region recorded a strong recovery in March. From a segment perspective, the growth was led by Savory and Snacks.

Europe, Africa and the Middle East

Sales in Europe, Africa and the Middle East increased by 5.2% on a like-for-like basis. In the mature markets, double-digit growth was achieved in Spain, followed by strong single-digit growth in France, Switzerland and Northern Europe. In the high growth markets, excellent business momentum was driven by double-digit growth in Russia, Turkey and the Middle East.

The growth was mainly achieved in the Savory, Snacks, Dairy and Sweet Goods segments.

North America

Sales in North America increased by 1.7% on a like-for-like basis, with improved performance from large customers as well as continued growth from local and regional customers.

The performance was a result of new wins and the growth of existing business in the Beverage and Snacks segments.

Latin America

Sales in Latin America increased 18.6% on a like-for-like basis with excellent performance across all markets and segments, led by strong double-digit volume growth in Mexico, Colombia and Argentina.

¹ Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, and (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date.

² Free Cash Flow (FCF) refers to operating cash flow after net investments, interest paid and lease payments.

The post Givaudan’s 2020 First Quarter Sales Good Start to Year appeared first on The Beauty Influencers.

GillesAndrier – The Beauty Influencers

Fragrance Foundation Honors Givaudan CEO Gilles Andrier

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Givaudan unveils its new brand identity, ‘Human by nature’.

Gilles Andrier, Chief Executive Officer

Givaudan 2021 Half Year Results

Gross profit

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)2

Operating income

Financial performance

Net income

Cash flow

Financial position

2025 guidance: Committed to Growth, with Purpose

Givaudan’s purpose

Key figures

Sales performance – January to June

Sales performance – April to June (quarter only)

Sales evolution by market – January to June

Sales evolution by region – January to June

Givaudan Fragrance & Beauty

Fine Fragrances

Consumer Products

Fragrance Ingredients and Active Beauty

Givaudan Taste & Wellbeing

Asia Pacific

South Asia, Africa and the Middle East (SAMEA)

Europe

North America

Latin America

Givaudan’s Calice Becker receives prestigious Lifetime Achievement Perfumer Award from The Fragrance Foundation (TFF)

Givaudan Recognized for Second Year on Prestigious CDP A List for Leadership in Global Climate Action and Water Stewardship

Givaudan Awarded Platinum Medal in EcoVadis Corporate Social Responsibility Assessment

Givaudan Opens Fragrance Production Facility in Changzhou

Givaudan Posts Strong 2020 Half Year Results

Gross Profit

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)2

In millions of Swiss francs

Acquisition and restructuring expenses incurred of CHF 24 million (2019: CHF 11 million) are largely related to the acquisitions that the Group has undertaken and the ongoing optimisation of the manufacturing footprint.

Operating Income

Financial Performance

Net Income

Cash Flow

Financial Position

2020 guidance: Responsible growth. Shared success.

Givaudan’s purpose

Key Figures

For the six months ended 30 June in millions of Swiss francs except for earnings per share data

In millions of Swiss francs, except for employee data

Sales Performance – January to June

In millions of Swiss francs

Acquisition impact (net)

In millions of Swiss francs

Sales Performance – April to June (quarter only)

In millions of Swiss francs

Sales Evolution by Market – January to June

In millions of Swiss francs

Sales evolution by region – January to June

In millions of Swiss francs

Fragrance Division

Fine Fragrances

Consumer Products

Fragrance Ingredients and Active Beauty

Flavour Division

Asia Pacific

Europe, Africa and the Middle East

North America

Latin America

NOTES

2. EBITDA defined as Earnings before interest (and other financial income (expense), net), Tax, Depreciation and Amortisation, corresponds to operating income before depreciation, amortisation and impairment of long-lived assets.

3. Comparable EBITDA is the reported EBITDA, as adjusted for significant items of a non-recurring nature which have an impact on the understanding of the underlying normal operating activities.

4. Free Cash Flow (FCF) refers to operating cash flow after net investments, interest paid and lease payments.

5. Leverage ratio is defined as net debt divided by the sum of net debt and equity (as defined for leverage ratio).

Givaudan’s 2020 First Quarter Sales Good Start to Year

Sales January to March

Acquisition impact in millions of Swiss francs

Sales evolution by market – January to March

Sales evolution by region – January to March

Fragrance Division

Flavor Division

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)²

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)²

For the six months ended 30 June
in millions of Swiss francs except for earnings per share data

Acquisition impact
in millions of Swiss francs