Givaudan flavours deliver strong six month performance
In terms of geography, the firm said sales expansion was driven by double digit growth in developing markets, particularly Latin America, and good gains in the mature markets of North America and Asia Pacific.
“All segments expanded globally with strong performance in beverage, sweet goods and snacks,” the company said in a statement on the first half of its financial year (H1). “Health & wellness sales continue to evolve strongly with double digit gains as our sweetness, salt and masking capabilities delivered improved taste solutions for our customers.”
Flavours sales grew by 4.4% in local currencies in Europe, Africa and the Middle East. There was double digit growth in the developing markets, particularly Africa and Eastern Europe and low single digit growth in western Europe, with a strong performance from the UK.
Latin America
In Latin America, Givaudan achieved flavours sales growth of 12.8% in local currencies, with increases coming from all major markets with the strongest performances in Argentina and Mexico. New wins and volume growth contributed to the upturn in beverage, savoury and sweet goods.
Flavours sales in Asia Pacific rose by 6.1% in local currencies, the company said.
The business’ flavours division clocked up sales growth of 5.6%, from CHF 1.08bn (€899.12m) to CHF 1.13bn (€942.4m) in the year to June 30. Comparable pre-tax profit grew by 5.1% to CHF227m (€188.98m).
Givaudan said construction of its CHF 170m (€141.53m) plant in Mako, Hungary had been completed. Commercial production is expected to start there in the second half of the year.
The company reported total sales for both flavours and fragrances up 6.9% in local currencies, from CHF 2bn (€1.67bn) to CHF 2.13bn (€1.77bn) and comparable pre tax profit up 12% to CHF 428m (€356.32m).
