ZURICH (Reuters) – Swiss fragrance and flavour maker Givaudan said on Tuesday it was on track to implement price increases to offset higher input costs after like-for-like sales rose 6.1% in the first nine months of 2022.
“With higher input costs in 2022, the company is fully on track in implementing price increases in collaboration with its customers to fully compensate for the increases in input costs,” the company that makes fragrances for perfumes and flavours for food and drinks said in a statement.
Sales were up 6.1% on a like-for-like basis and 7.7% in Swiss francs, reaching 5.458 billion Swiss francs ($5.45 billion) in the nine-month period, the Geneva-based company said.
Sales in Givaudan’s fragrance and beauty business rose 5.8% at 2.489 billion francs, helped by almost 15% higher fine fragrance sales, Givaudan said.
Sales in its taste and wellbeing unit increased by 6.4% to 2.969 billion francs despite a hit from COVID-19 measures in China, the company said.
The fragrance and flavour industry will have a new champion when Dutch DSM completes its merger with Switzerland’s Firmenich, but market experts still see Givaudan as No.1 in fine and consumer fragrances and as co-leader in flavours with IFF.
Givaudan confirmed its mid-term target of 4-5% average organic sales growth per year on a like-for-like basis.
(Reporting by Silke Koltrowitz, Editing by Miranda Murray)
