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“.
Read also > GIVAUDAN’S RESULTS EXCEED EXPECTATIONS FOR THE FIRST HALF OF 2021
Featured photo : © Givaudan
