Givaudan says prices will continue to rise
THE WHAT? Givaudan said it will continue to implement price increases in conjunction with its customers to fully offset the increased input costs it is experiencing this year. The flavor and fragrance maker called its performance in the first three months of the fiscal year a “good start.”
THE DETAILS Sales increased by 4.6% on a comparable basis compared to the prior year period. Fragrance and Beauty sales reached CHF 810 million, up 2.7% year-on-year on a like-for-like basis. Fine Fragrance sales climbed 17.4% and Active Beauty 8.2%, while the Consumer Products unit fell 2.3%.
THE WHY ? Sales growth was driven by continued strong volume growth in Fine Fragrance with a strong and sustained level of new business, as well as continued double-digit growth in Active Beauty, said Givaudan. Demand for fragrance ingredients remained strong, while consumer products performance was impacted by strong comparable growth in the prior year.
Gilles Andrier, CEO, said: “We are very pleased with the strong start we have made to 2022, despite the challenging external environment affecting many areas of our business. Our strong like-for-like sales growth of 4.6% was achieved compared to strong like-for-like growth of 7.7% the previous year, and demonstrates the strength of our business and organization in support our customers around the world.