Givaudan First-Half Net Profit Fell Despite Sales Growth

By Joshua Kirby

Givaudan SA said Thursday that earnings fell slightly in the first half of the year despite higher sales, as input costs increased amid supply-chain disruption.

The Swiss flavor-and-fragrance company said sales rose 8.3% in the six-month period to 3.65 billion Swiss francs ($3.76 billion), driven by the taste and wellbeing division. In the second quarter alone, reported group sales accelerated to 10%, coming in at CHF1.87 billion.

However, net profit for the first half fell to CHF440 million from CHF481 million a year earlier, as the operating margin narrowed to 17.3% from 18.2%, Givaudan said. Earnings before interest, taxes, depreciation and amortization rose slightly to CHF816 million.

Givaudan meanwhile backed its mid-term goals, including 4%-5% organic sales growth and free cash flow of at least 12%. With input costs climbing, the company is implementing price increases to compensate, it said.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

July 21, 2022 01:23 ET (05:23 GMT)

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