Swiss fragrance maker Givaudan on Tuesday confirmed its medium-term targets and plans to raise prices this year.
Givaudan, the fragrance and flavour company, said it would continue to raise prices this year to offset rising input costs, after like-for-like sales increased by 4.6% in the first quarter.
The group is not, strictly speaking, impacted by the Russia/Ukraine conflict crisis, including for ingredients sourced from those countries, but wants to increase prices to offset rising raw material and energy costs.
“With higher input costs in 2022, the company continues to implement price increases in collaboration with its customers to fully compensate for input cost increases,” the Swiss group commented.
Sales of its taste and wellness business grew by 6.4%, while those of its fragrance and beauty unit, facing a more difficult comparison base, grew by 2.7%. The company noted strong demand for its fragrances for perfumes as well as flavours for beverages, dairy and snacks, whilst sales of fragrances for consumer products such as toothpaste and soap declined after benefiting strongly from the pandemic.
Givaudan confirmed its medium term objective of 4-5% underlying sales growth and free cash flow of at least 12% on average over a five year cycle. Group sales reached 1.78 billion Swiss francs ($1.91 billion), up 6.4% in Swiss francs.
Givaudan CEO Gilles Andrier said he was “very pleased with this good start in 2022, despite a complex and challenging external environment“.
Featured photo : © Givaudan
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Passionnée depuis son plus jeune âge par l’art et la mode, Hélène s’oriente vers une école de stylisme, l’Atelier Chardon-Savard à Paris, avec une option Communication. Afin d’ajouter des cordes à son arc, elle décide de compléter sa formation par un MBA en Management du Luxe et Marketing Expérientiel à l’Institut Supérieur de Gestion à Paris dont elle sort diplômée en 2020. Elle a notamment écrit des articles lifestyle et beauté pour le magazine Do it in Paris et se spécialise en rédaction d’articles concernant le luxe, l’art et la mode au sein du magazine Luxus Plus.********** [EN] Passionate about art and fashion from a young age, Hélène went to a fashion design school, Atelier Chardon-Savard in Paris, with a Communication option. In order to add more strings to her bow, she decided to complete her education with an MBA in Luxury Management and Experiential Marketing at the Institut Supérieur de Gestion in Paris from which she graduated in 2020. She has written lifestyle and beauty articles for Do it in Paris magazine and specializes in writing articles about luxury, art and fashion for Luxus Plus magazine.