The past year was marked by the strength of the Swiss franc and reduced consumer sentiment for Givaudan. However, in the final quarter, the Swiss company shows a clear dynamism once again. Price increases and cost savings contributed to improved profitability.

Despite a decline in revenue in Swiss francs of 2.8 percent to 6.92 billion Swiss francs, the company recorded organic growth of 4.1 percent, adjusted for acquisitions, sales, and currency effects. This is just within the medium-term target range of 4 to 5 percent.

Particularly the last quarter of the year was characterized by an increasing momentum. Organic growth was significantly above the target range at 7.9 percent. By comparison, it was still well below after nine months at 2.9 percent. The fragrance segment showed particularly strong performance compared to the flavors business.

Luxury perfumes once again drove growth and recorded an organic growth of 14 percent. Overall, sales in this area increased organically by 7.6 percent. In Swiss francs, revenue was 3.31 billion, representing a growth of 1.7 percent.

In addition to the successful luxury perfumery, accelerated volume growth in the consumer goods business and price increases in all areas of the business contributed to this result.

The flavor segment, on the other hand, only recorded organic growth of 1.1 percent. In Swiss Francs, the Geneva-based company even experienced a decline of 6.7 percent to 3.60 billion. The business area was affected by weaker volume in the health, culinary flavors, and dairy products segments, while snacks and confectionery continued to achieve positive results.

Despite the decline in sales, Givaudan was able to almost maintain its operating profit (EBITDA) at the same level as the previous year, thanks to currency-adjusted sales growth and successful cost management. It amounted to 1.47 billion Swiss francs, only 0.2 percent less than the previous year. The EBITDA margin increased from 20.7 percent to 21.3 percent. Net profit increased by 4.3 percent to 893 million Swiss francs. Shareholders can look forward to an increased dividend of 68 Swiss francs per share.

The business figures significantly exceed analysts' expectations in terms of organic growth. They had expected Givaudan not to reach its own target range. The EBITDA margin was slightly below expectations, while net profit was slightly above.

The company confirms the medium-term targets, which envisage organic growth of 4 to 5 percent per year and a minimum free cash flow yield of 12 percent. In 2023, Givaudan achieved a record free cash flow of 920 million, thus reaching a yield of 13.3 percent compared to 6.7 percent in the previous year.

The business figures were positively received in the stock exchange: The Givaudan share temporarily traded 5.00 percent higher at 3,483.00 Swiss Francs. Despite the challenges of the past year, the company remains resilient and successful in achieving its medium-term goals.