By John Revill
ZURICH-- Givaudan SA reported a 15% rise in full-year earnings
and forecast more revenue growth this year underpinned by sales in
emerging markets where the world's largest fragrance and flavor
maker has continued to expand.
Givaudan is benefiting from increased demand for flavors for
snacks and ready-to-eat dishes, and for fragrances for perfumes and
cleaning products, particularly in emerging markets like
Brazil.
The Geneva-based company, whose customers include Nestlé SA and
Mondelez International Inc., said on Thursday that net profit rose
to 563 million Swiss francs ($619 million) from 490 million francs
a year earlier, broadly in line with analysts' expectations.
Revenue edged higher to 4.40 billion francs from 4.37 billion
francs a year earlier.
Adjusted for currency swings and acquisitions, revenue rose 7%
in developing markets during the year, outpacing the 1.1% rise in
Europe and North America.
Givauden expects so-called organic revenue growth, stripping out
the impact of currency fluctuations and acquisitions, of 4.5% to
5.5% a year, as long as the overall market grows between 2% and
3%.
Developing markets now make up 46% of the company's sales, up
from 45% a year earlier, with Latin America the standout performer,
increasing sales by 11%. In contrast, Givaudan struggled to eke out
gains in North America struggled, with revenue up just 0.6%, while
in Europe, revenue rose 2.5%.
Givaudan's performance provides some insight into the health of
the food-makers and perfume-makers that it supplies with
fragrances. The company, which currently holds a roughly 25% share
of the overall industry, makes perfumes such as Far Away Gold by
Avon, and Polo Red for Men by Ralph Lauren.
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