Givaudan Profit Beats Estimates as Latin American Demand Rises
Givaudan SA (GIVN), the world’s largest maker of flavorings, reported rising profits as Latin American consumers demanded more of its flavors and perfumes.
First-half net income gained 36 percent to 271 million francs ($289 million), the Geneva-based company said in a statement today. The average estimate by 10 analysts in a Bloomberg survey was for 229 million francs. Sales gained 5.7 percent to 2.2 billion francs, meeting analyst estimates.
Argentina and Brazil led flavorings sales and Latin Americans also mainly drove a rebounding performance in perfumes, Givaudan said in the statement. Sales of products at Givaudan’s Health and Wellness division with sweetness, salt and masking capabilities grew more than 10 percent.
Chief Executive Officer Gilles Andrier is targeting sales growth at about double the market rate even as Europe’s financial difficulties weigh on demand for snacks and perfumes. Andrier has presided over a share price rise of 35 percent this year, outgrowing the Swiss market index of Switzerland’s 20 largest listed companies which has grown 16 percent over the same period. Shares of Holzminden, Germany-based competitor Symrise AG (SY1) have risen 19 percent.
The company confirmed a mid-term objective to grow organically between 4.5 percent and 5.5 percent per year, assuming a market growth of 2 percent to 3 percent.
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