Fragrance and flavor maker Givaudan beats third-quarter sales forecast on strong demand By Reuters

(Reuters) – Swiss perfume and flavor maker Givaudan on Thursday reported third-quarter sales above analysts’ expectations, driven by sustained and high demand in its markets.

Givaudan sales rose 10.2 percent to 1.91 million Swiss francs ($2.22 million) on a reported July-September basis, beating analysts’ average estimate of 1.86 billion francs in a survey conducted by the company.

While the rest of the European chemicals sector, and Germany in particular, is experiencing weak demand amid a sluggish economy, companies involved in the fragrance and flavor markets have seen strong sales growth.

A wave of stock cuts amid weaker demand hit Givaudan’s volumes last year, but strong sales growth has boosted its profitability since then.

“We are able to continue to support strong and broad volume demand from our customers,” CEO Gilles Andrier said in the statement.

On a like-for-like basis, Givaudan’s sales rose 14.1% in the third quarter, above the 10.4% increase expected by analysts. They have grown by a double-digit percentage since the beginning of 2024.

On a like-for-like basis, sales at the Taste & Wellbeing business, which accounts for more than half of Givaudan’s revenue, were up 12.4% from a year earlier, while sales at the Fragrance & Beauty unit were up 16, 0%

($1 = 0.8604 Swiss francs)