Swiss Givaudan's Q1 '05 sales drop 4.7% to SF668.7m

08 April 2005 12:15  [Source: ICIS news]

LONDON (CNI)--Swiss flavours and fragrances group Givaudan reported on Friday a 4.7% fall to SF668.7m ($558m/Euro431m) in first quarter (Q1) sales compared with the same period last year, down 1.6% in local currencies .


Givaudan, which does not disclose quarterly earnings, said that the fall in revenues compared with the same quarter of 2004 was due to the strong comparable performance last year, lower prices for some natural raw materials and the streamlining of non-core ingredients.


Despite a “challenging” first quarter performance, the company is confident that it can “deliver another good result for 2005”, it said in a statement.


The fragrances division achieved Q1 sales of SF273.1m, up 0.8% in local currencies and down 1.9% in Swiss francs. Fine fragrances sales were lower year-on-year due in part to several postponed launches.


The company said that the European fine fragrance markets had performed below Q1 2004 levels, reflecting destocking of distribution channels and slow consumer demand. North American sales were “sluggish” compared with the same period last year.


Consumer products maintained good sales growth in all regions, especially North America, Givaudan said. The fabric care and personal wash segment remained the largest category, while the strongest segment performance came from hair and skin care.


In fragrance ingredients, Givaudan said sales of specialties continued to grow at double digit rates in Q1 2005. Growth is expected to continue in specialty sales, while commodity ingredients will decline further.


Sales in the flavour division in Q1 2005 were SF395.6m – down 6.5% in Swiss francs and 3.2% in local currencies. Sales were affected by lower prices for naturals, such as citrus and vanilla, and the streamlining of non-core savoury ingredients relating to the Food Ingredients Specialities portfolio acquired from Nestle in 2002.


Sales in North America declined due to build-ups of customers’ inventories in 2004 and the effect of lower prices for some natural ingredients which particularly affected the beverage and dairy segments. The confectionery segment continued to post good growth, the company said.


Asia-Pacific sales were up strongly on Q1 2004, especially in China and South Asia. Sales growth in Latin America slowed against a strong comparable period in 2004.


Sales in Western Europe declined compared with Q1 2004, partially offset by a strong performance in Central and Eastern Europe, where the company has been investing. The confectionery and dairy segments recorded growth while savoury products declined.

By: Mark Whitfield
+44 20 8652 3214

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