Givaudan has reported full year sales were CHF 5,527 million, an increase of 5.6% on a like-for-like basis and 9.4% in Swiss francs when compared to 2017. Fragrance Division sales were CHF 2,525 million, an increase of 6.6% on a like-for-like basis and 7.8% in Swiss francs. Flavour Division sales were CHF 3,002 million, an increase of 4.6% on a like-for-like basis and 10.8% in Swiss francs.

Givaudan says it completed the year with good business momentum and with the project pipeline and win rates being sustained at high levels. This good growth, the company says, was achieved across all product segments and geographies, with its key strategic focus areas of naturals, health and well-being, active beauty, integrated solutions and local and regional customers delivering strong growth, complemented by the recent acquisitions.

The company reports that it continues to implement price increases in collaboration with its customers to fully compensate for the increase in input costs.

“Our strong performance in 2018 demonstrates our continued ability to deliver on our short term objectives, whilst at the same time investing for the long term future success of our business,” said CEO Gilles Andrier. “I am very pleased with the results we have achieved in 2018 and with the significant progress that we have made towards our strategic objectives under the 2020 strategy.”

Gross profit increased by 3.5% from CHF 2,250 million in 2017 to CHF 2,329 million in 2018. Despite continued productivity gains and cost discipline, the gross margin declined to 42.1% in 2018 compared to 44.5% in 2017, as a result of the lower gross margin in the Fragrance Division, which was impacted by a sharp and broad based increase in raw material costs.

EBITDA was CHF 1,145 million in 2018 compared to CHF 1,089 million in 2017, an increase of 5.2% in Swiss francs and 4.3% in local currency. The EBITDA margin was 20.7% in 2018 compared to 21.6% in 2017. On a comparable basis, the EBITDA margin was 21.0% in 2018 compared to 23.3% in 2017.

Flavour Division sales were CHF 3,002 million, an increase of 4.6% on a like-for-like basis and 10.8% in Swiss francs. The sales of the Flavour Division include CHF 9 million from Centroflora Nutra, acquired in May 2018, and CHF 146 million from Naturex, acquired in September 2018.

The sales performance was driven by new wins and strong business momentum across all regions. The key strategic focus areas of the 2020 strategy, namely Health and Well-Being and Naturals grew at double-digit and high single-digit levels respectively.

From a segment perspective, beverages, dairy, sweet goods and snacks were the main contributors to the division growth.