Strong growth in emerging markets was a major driver of increased sales in the first nine months of 2012, according to Switzerland-based flavour and fragrance firm Givaudan.
The company reported a 6.1% increase in sales during the first nine months in local currencies and 8.8% in Swiss francs compared to the prior-year period. Sales were CHF3.2bn (about €2.64bn) for the nine months, and CHF 1.1bn (€900m) for the third quarter. The company did not report any profit figures, but reiterated its mid-term sales growth target of 4.5% to 5.5% a year.
Givaudan’s flavour division is slightly larger than its fragrance division, and the company said all segments expanded globally, with particularly strong growth in beverage, sweet goods and snacks on a global basis.
“Sales expansion in the developing markets continued while the mature markets continued their good performance during the first nine months against very strong comparables,” Givaudan said.
The company highlighted 12.9% growth in Latin American flavour markets, especially in Brazil, Argentina and Mexico. Beverage, dairy and savoury segments saw the biggest sales volume gains in that region.
Meanwhile, Asia Pacific sales were up 4.6%, “driven by particularly strong performances in Indonesia and Thailand.”
The mature markets of Western Europe and Great Britain saw ‘moderate’ growth, the company said, with sales increasing in all segments except savoury. For the EMEA region as a whole, sales were up 3.5% in local currencies.
In North America, sales increased 3.4%, and sales increased in all segments except dairy.
Beverage and new business in snacks were the major drivers of increased sales in both EMEA and North America, the company said.
In the fragrance division, higher overall sales were driven by a double digit increase in consumer products sales, such as toothpaste and other toiletries, and air and fabric care. Gains were largest in developing markets.
Meanwhile, sales of fragrance ingredients were down 5.7% on lower market demand, mainly in Europe and North America.