Switzerland-based Givaudan has today reported a “satisfactory” full year 2009, despite the tough economy. It weathered the storm by a combination of cost control, price increases, efficiency improvements, and integration savings, and saw overall sales of CHF 3959m and net profit of CHF 199m.
Fifty-four per cent of sales were of flavours, with a value of CHF 2135m. Across the world, the flavour division fared better than fragrances, which were affected by consumers cutting back on fine fragrances and other luxuries.
However it was the developing markets that brought back good growth: Latin America saw a 14.1 per cent increase in sales in local currencies; and the equivalent growth for Asia Pacific was 8.2 per cent (driven especially by India and China).
The growth rates in both Latin America and Asia Pacific was said to be greater than the underlying markets. Givaudan did not break out the percentage of flavour sales to come from developing markets, but for its overall business they made up 38 per cent last year (CHF 1509m) last year.
Against this, the European, Africa and Middle East (EMEA) and US markets were treading water or shrinking slightly last year. EMEA saw sales decline by 0.3 per cent in local currencies. Good growth in Africa and the Middle East compensated for a drop off in Central and Eastern Europe, while Western Europe sustained sales at last year’s level.
In the US the economic climate caused de-stocking by customers, and a subsequent 3.3 per cent decline in sales.
Health and wellness king
Health and wellness trends continued to be the source of good business for Givaudan. Both dairy and beverages solutions gained ground, with health and wellness underscoring both.
Givaudan’s innovations have been driven by its TasteSolutions programme, which revolves around salt reduction, sweetness enhancement and bitterness masking. It has also made new moves in citrus flavours, with a raft of new lemon and lime flavours developed through its cooperation with the University of California, Riverside’s citrus grove.
Other iconic flavours, such as chicken, vanilla, tea, coffee and dairy, are also receiving revamps from Givaudan’s R&D team.