(AOF) – Swiss manufacturer of flavors and perfumes, Givaudan (-2.33% to 3,937 Swiss francs) is withdrawing to Zurich after the presentation of its sales in the first quarter of 2024. Over this period, the group generated for its flavors division a turnover lower than expectations of 922 million Swiss francs. This increased by 9.3% excluding exchange rate effects but fell by 1.5% after conversion into Swiss francs. The market anticipated sales at 931 million Swiss francs and Jefferies at 939 million.
However, in the first three months of 2024, Givaudan recorded sales of 1.82 billion Swiss francs, an increase of 12.6% on a like-for-like basis and 2.8% in Swiss francs. They exceed the Jefferies consensus (1.76 billion) and that of the market (1.77 billion).
The turnover of the perfume and beauty division amounted to 900 million Swiss francs, an increase of 16.3% year-on-year and 7.5% in Swiss francs. It also exceeds the market consensus (850 million) and the Jefferies estimate (823 million).
The broker, however, expected a slight positive reaction from the stock.
“We are satisfied with our very good start to 2024, driven by strong momentum in our established activities and a high level of new contracts. This strong growth was achieved across all markets and segments.”, comments Givaudan, following this quarterly publication.
By region, the strongest growth in sales went to Latin America with 5.8%, Europe advanced by 4.9% and North America by 1.2%. Only Asia-Pacific fell by 0.7%.
The group began the year with strong commercial momentum and maintained its operations and global supply chain at a high level, in the face of increased volume demand from customers and persistent challenges in production. supply chain.
In terms of outlook, the perfume manufacturer anticipates sales growth of 4 to 5% on a like-for-like basis for 2024 and free cash flow of at least 12%, both measured on average over the five-year strategic cycle.
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