Givaudan reports good sales momentum

Flavours and fragrances company Givaudan has reported a 6.1% (local currency) increase in sales for…

Flavours and fragrances company Givaudan has reported a 6.1% (local currency) increase in sales for the first nine months of 2012.

Sales of flavours were up by 4.8%, with fragrances growing by 7.6%.

In the most recent quarter, however, sales grew by only 4.6%, with flavours ahead by 3% and fragrances up by 6.3%.

Mid-term, the company said, its overall objective is to grow organically between 4.5% and 5.5% per annum, assuming a market growth of 2-3%, and to continue on the path of market share gains.

By delivering on the company's five pillar growth strategy - developing markets, Health and Wellness, market share gains with targeted customers and segments, research and sustainable sourcing - Givaudan expects to outgrow the underlying market.

Givaudan said that increased sales in flavours were as a result of new wins in key segments and volume growth of the existing business, while sales expansion in the developing markets continued and mature markets continued their good performance during the first nine months against very strong comparables. All segments continued to expand globally with strong performances in beverage, sweet goods and snacks.

North America sales increased by 3.4% in local currencies. All segments grew with the exception of dairy. High single digit gains in the beverage segment and double digit growth in Snacks were driven by new wins and existing business evolution.

Sales in Latin America increased by 12.9% in local currencies with strong performances in all of the major markets. Argentina and Mexico saw double digit growth and Brazil also experienced strong growth. Growth in Latin America was, said Givaudan, a result of new wins and volume gains in existing business, especially in the beverage, dairy and savoury segments.