Latin American appetite for snacks and beverages boosts Givaudan's 2012 results

Flavour and fragrance firm Givaudan said increased sales of its flavours for snacks, beverages and dairy products in Latin America boosted its sales during 2012, as it reported a 15% increase in overall net profit.

Latin America was the company's strongest performing region for its flavours division during the year, with sales growth of 13.2% in local currencies. Givaudan said there was particularly strong growth in Argentina, Brazil and Mexico, and its beverage, dairy and savoury segments all grew by double digits.

Overall, the company reported a 14.8% increase in net profit to CHF 870m (706m euros), while sales increase 6.6% in local currencies and 8.7% in Swiss francs, to CHF 4.257bn (3.45bn euros).

Emerging markets accounted for 44% of its sales in 2012, and the company said it was on track to have 50% of its sales from developing markets by 2015.

In Europe, the Middle East and Africa (EMEA), flavours sales increased 3.6%, with developing markets in Africa and Eastern Europe leading the way, although mature markets also increased, with gains mainly coming from Ireland and the UK, the company said. Meanwhile, local currency sales were up 4.4% in the Asia Pacific region and 4.1% in North America.

The company said that throughout all regions, the health and wellness segment saw particularly strong growth, following the commercialisation of sweetness and salt replacers.