Geneva (awp) – Givaudan saw its net profitability decline in the first half. Despite rising sales, the Geneva flavors and fragrances giant posted a net profit of 440 million Swiss francs, against 481 million twelve months earlier.
Turnover amounted to 3.65 billion Swiss francs, which represents an increase of 8.3% over one year, said Thursday Givaudan. Organic growth was 6.2%.
Sales of the Fragrances division increased by 4.7% to 1.64 billion Swiss francs, while the Flavors business generated sales of 2 billion, up 7.6%.
Gross operating income (Ebitda) rose only 0.8% to 816 million Swiss francs, for a related margin of 22.4%, the statement said.
Operating cash flow reached 131 million Swiss francs in the first half, compared to 415 million for the same period in 2021.
The figures revealed by the Geneva group are more or less in line with expectations. Apart from the net profit, the other indicators are at the high end of the AWP consensus forecast range.
The management of the verniolan group confirms this year again its medium-term objectives, i.e. for 2025. The organic growth target is set between 4% and 5% per year. The return on free cash flow is expected to exceed 12%.
vj/ib/al