07 October 2005 13:29 [Source: ICIS news]
By Nigel Davis
LONDON (ICIS news)--Switzerland-based flavours and fragrances producer Givaudan on Friday revealed a welcome return to growth in the third quarter supported by new launches in fragrances and its focus on flavour specialties.
After nine months Givaudan’s fragrance division sales were up 2.8% at SF851m. Fine fragrances produced goods sales growth in the third quarter, Givaudan said, backed by a number of new launches, particularly in North America, which helped narrow the fall in sales from these businesses after nine months compared with 2004.
The consumer products business unit continues to outperform the market, the company added, and produced strong sales growth after nine months driven by products for hair and skin care and by fabric and personal care fragrances.
Specialty ingredients sales increased at double digit rates but could not compensate for the sales decline in commodities. Givaudan is trying to move away from low margin commodity ingredients. It said it will support specialty ingredients by introducing a number of new patented molecules in the near term.
Flavours division sales after nine months were up 0.5% with growth in the third quarter, offsetting earlier weakness. The company reported solid growth for flavours in Asia-Pacific and a slight decline for the period in Europe, Africa and the Middle East. It is supporting sales growth with new creation and application centres in Europe, the Middle East and in China. In Europe and the Middle East, however, it said these developments could not compensate for the impact of lower vanilla prices and lower consumer consumption in western Europe.
Flavours sales in North America were down slightly but buoyed by strong growth in beverages and confectionary in the third quarter. Lower prices for vanilla and citrus, however, still impacted the beverages and dairy segments. Confectionary and beverage products also lifted sales growth in Latin America, the company said.
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