Givaudan accesses profit rise

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In a month when many companies in the food industry have reported a
downturn in profits Swiss flavour and fragrance company Givaudan
boasted healthy results.

In a month when companies across all industries have reported a downturn in profits, Swiss flavour and fragrance company Givaudan boasted healthy results this week with an increase in net profit by 16 per cent. The company claims that it maintained its momentum in the first half year 2001 while improving operating and net margins. The company recorded sales of CHF 1259 million (856 million euros) compared to CHF1203 million (818 million euros) in 2000, resulting in a healthy increase of 5.2 per cent in local currencies and 4.7 per cent in Swiss Francs. In a statement Givaudan stressed that the key growth drivers were the overall good performance of the Flavour Division and the Fragrance Consumer Products segment. On a regional basis, Asia Pacific outperformed all other regions, showing double-digit growth in both divisions, followed by Latin America. North America and Europe also showed positive growth in both divisions. Efforts to focus on core customers while further improving operational efficiency were successfully continued, the company claimed. The new online product offering, GivaudanAccessTM, which was launched mid-July in North America, aims to enable Givaudan to efficiently serve a broader customer base and generate accelerated profitable sales. GivaudanAccessTM operates as a self-contained unit. Capitalising on global purchasing leverage and the management of production facilitated a gross profit margin of 47.9 per cent. Major investments in its operating base and IT-based business systems over the last years have led to sustainable supply chain improvements, the company stated. The company added that good operating performance and the improvements in financial results led to the net income increase of16% to CHF 149 million (101 million euros).

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