Givaudan adds nice aroma to first quarter, leads the SMI trade
Givaudan SA reported sales of 1,152 million francs (€1,058.62 million), in the first three months of 2016. That represents an increase of 5.8% on a like‑for‑like basis, which translates into rise of 5.6% in Swiss francs compared to the previous year, according to company's earnings report released on Tuesday.
This compares to a relatively low growth through entire 2015, which has plagued producer of flavours and fragrances, and other cosmetic ingredients. The Vernier, Switzerland-based chemical company saw a healthy rise of 8.3% in fragrance sales, or 561 million francs (€515 million). This may indicate that perfumes and related luxury goods could see a rise in sales in the coming months. There was a notable rise of sales in Latin America, and North America, as opposed to Western Europe "where sales in were impacted by a weaker holiday sell through".
Givaudan acquired Induchem company on August 31, 2015, and its sales were 6.1 million francs (€5.6 million) for the first three months of 2016, adding almost 1% to company's Fragrance division.
In Flavour division, sales were 591 million francs (€542.85 million), a growth of 3.5% in the first quarter, despite what company calls "challenging economic conditions in the high growth markets of Africa and Eastern Europe".
While Givaudan S.A. is not widely recognised as a household name outside of Switzerland, where it employs over 9,000 people, the company's business - founded back in 1895 - is a good indicator in the field of chemical and flavour production.
Shares of Givaudan SA rose 1.11% to 1,905 francs by 11:45 a.m. CET; the stock gained 7.82% of value in the last three months and over 66% in the last three years.
In Zurich, where Givaudan is listed, the Swiss Market Index fell 0.20% to 7,736 points. Givaudan was the best performer, followed by financial companies: Swiss Life Holding AG 0.92%, Zurich Insurance 0.90%, UBS Group 0.62%. Swatch was down 2.14%, SGS lost 1.19% and LafargeHolcim dropped 1.16%.
The Swiss franc was 0.07% stronger compared to the euro, and as much as 0.53% versus the Japanese yen, but 0.23% weaker against the U.K. pound and 0.20% versus the U.S. dollar.
Image: Givaudan laboratories © EPA/Martin Ruetschi