Swiss food ingredients group Givaudan has booked an increase in first-half profits.

In the six months to the end of June, net profit increased 67.5% to CHF201m (US$207.9m). Operating profit amounted to CHF295m, a 27.7% increase on the prior-year period.

Price increases, cost control measures and the absence of last year’s one-off costs boosted profits, Givaudan said.

Sales grew 6.9% to CHF2.13bn. The firm’s flavours and fragrances divisions saw sales also increase in the period, by 5.6% and 8.3%, respectively.

Kepler analyst Markus Mayer said Givaudan’s revenue and EBITDA growth was “slightly below expectations”, but that its profit increase was “in line with expectations”. 

“The earnings miss will restart the discussion if Givaudan will be able to increase its payout ratio this year which was among the key reasons why [investors] hold Givaudan in their portfolio,” Mayer noted.