Swiss food ingredients group Givaudan today (11 April) reported an increase in first-quarter sales as its flavours division was boosted by growth in Asia, Latin America and Africa.
The company booked a 4.7% rise in sales to CHF1.06bn (US$1.16bn) for the three months to the end of March. When measured in local currencies, sales were up 8.4%.
Givaudan manufactures flavours for use in industries including dairy and snacks. It said revenue from flavours increased 3% to CHF561.2m, or by 6.4% in local currencies.
It pointed to “double-digit” increases in sales of existing products in Asia Pacific, Latin America and Africa. It also secured new contracts in Asia Pacific, Latin America and North America.
Sales from its fragrance division, which supplies to manufacturers of home and personal care products, increased 6.8% to CHF499.1m, or by 10.7% when measured in local currencies.
“All in all, the reported sales figures are really strong and above expectations,” Kepler Capital Markets analyst Arne Rautenberg said. “Especially the fact that Givaudan was also able to show a reasonable volume growth is positive. Even if management gave no statement about margin development or raw material costs, we are still optimistic that the company also improved its profitability not only due to price increases but also due to a favourable product mix.”