In the first three months of 2017, Givaudan recorded sales of CHF 1,242 million, an increase of 3.5% on a like-for-like basis, and 7.7% in Swiss francs compared to the previous year.

Givaudan says it started the year with good business momentum and with the project pipeline and win rates being sustained at a high level. This good growth was achieved against strong prior year comparables for the same period in 2016, particularly in the Fragrance Division. The company says it continues to implement price increases in collaboration with its customers to compensate the increases in input costs.

Givaudan reaffirmed its 2020 ambition to create further value through profitable, responsible growth. Building on the first year of this strategic cycle in 2016, Givaudan’s 2020 ambition is built on the three strategic pillars of growing with its customers; delivering with excellence; and partnering for shared success.

Ambitious financial targets remain a fundamental part of Givaudan’s strategy, the company says. It aims to outpace the market with 4-5% sales growth and a free cash flow of 12-17% of sales, both measured as an average over the five-year period of its strategic cycle.

The Flavour Division reported sales of CHF 666 million, a growth of 4.8% on a like-for-like basis and an increase of 12.6% in Swiss francs. Including Spicetec, acquired in August 2016 and Activ International, acquired in January 2017, the growth was 14.1% in local currency.

The sales performance was driven by new wins and strong business momentum in North America, Europe and in the Middle East and Africa, Givaudan says.

Asia Pacific grew more modestly due to slower sales momentum in China whilst Latin America experienced a decline against a strong comparable in 2016.

From a segment perspective, Dairy, Beverages, Savoury and Sweet Goods all contributed to the positive sales performance.

Sales in Asia Pacific increased by 2.0% on a like-for-like basis. South East Asia had good growth thanks to new wins and existing business expansion which was offset by slower growth in China and India. The mature markets continued to grow with a particularly strong performance in Oceania and Japan.

Sales in Europe, Africa and Middle East increased by 6.1% on a like-for-like basis. Double-digit growth in the high growth markets of Africa and Middle East and good growth in Russia and Turkey contributed to the performance in the region. In the mature markets of Western Europe, the division experienced positive sales development in the UK, Germany and France.

Sales in Latin America decreased 3.4% on a like-for-like basis against a high comparable for the same period in 2016. Good sales momentum in Argentina and Mexico was offset by the impact of the high prior year comparable in Brazil.

Sales in North America increased by 9.2% on a like-for-like basis. The strong growth, against a weaker comparable in 2016, was led by Dairy and Beverages as a result of new wins and growth of the existing business.