(Reuters) – Swiss fragrance and flavour maker Givaudan on Wednesday reported better-than-expected earnings for a year characterized by high input costs and supply chain disruptions.
The group, which so far has successfully passed steep input cost increases on to customers, however saw a slowdown in sales during the latter half of 2022, particularly in its flavours business in North America.
Its annual profit rose 4.2% to 856 million Swiss francs ($927.5 million), compared with analysts’ average forecast of 806 million francs in a poll compiled by the company, leading the Geneva-based group to propose a dividend of 67 francs per share, 1.5% higher than last year.
Sales increased by 5.3% on a like-for-like basis to 7.1 billion Swiss francs in 2022, while growing only 2.9% organically in the final quarter.
Its comparable core profit (EBITDA) margin was 20.9%, down from 22.5% in 2021.
German rival Symrise on Monday reported a lower-than-expected 2022 EBITDA margin due to an impairment.
Givaudan and Symrise are the runners-up behind IFF Inc in the market share ranking for fragrances, flavours and ingredients for food and cosmetics. The industry, which has been expanding into functional food and health ingredients, typically offers strong growth, driven by consumers in emerging markets, with few cyclical swings.
Givaudan said it achieved good growth across the board in the year, with emerging markets increasing 9.9% organically.
It confirmed its mid-term target of 4-5% average organic sales growth per year on a like-for-like basis.
($1 = 0.9229 Swiss francs)
(Reporting by Jagoda Darlak and Bartosz Dabrowski in Gdansk; Editing by Milla Nissi)
