In Swiss francs, sales in the January-September period rose 7.7 percent to 5.46 billion francs. For organic, i.e. excluding acquisitions and sales and currency-adjusted, edible, home and care products, sales were up 6.1 percent, as the manufacturer of flavors and fragrances announced on Tuesday.
The organic growth calculated only for the months of July-September was 5.8 percent. The industry leader lost momentum compared to the previous quarter. Organic growth in the second quarter was still 7.9 percent.
Analysts’ expectations were also in vain. According to the AWP consensus, they assumed organic growth of 7.3 percent for the third quarter. As usual, Givaudan did not release profit figures at the end of the nine months.
However, growth must be based not only on increased volumes, but also on significant price increases. Because Givaudan constantly reflects the increasing raw material prices to its customers. The Geneva group is known for its pricing power and can usually recoup the increased costs within 12 to 18 months.
Given the rising costs in the current year, the group sees itself as “on the right track” to fully offset costs through price increases, as has been said. Givaudan is also committed to its medium-term goals: organic growth should be between 4 and 5 percent and free cash flow should account for at least 12 percent of sales.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
