Givaudan’s 2011 net income falls by 25.9% on strong Swiss franc

16 February 2012 06:32  [Source: ICIS news]

SINGAPORE (ICIS)--Switzerland’s Givaudan said on Thursday its net income for the full year 2011 decreased 25.9% year on year to Swiss francs (Swfr) 252m ($274m) as a result of the strengthening of the Swiss franc.

The firm’s group sales totalled to Swfr 3.9bn, an increase of 5.2% in local currencies, but a decline of 7.6% in Swiss francs compared to the same period a year earlier, Givaudan said in a statement.

“The continued strengthening of the Swiss franc against all currencies, and in particularly the USD, as well as the increase in raw material costs, significantly impacted absolute levels of EBITDA,” it said.

Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to Swfr758m, from Swfr 887m last year, the statement said.

“During 2012, the company will continue to work in close collaboration with its customers to make the necessary adaptation of its prices to reflect the sharp increase in input costs,” it said.

Givaudan expects to improve its annual free cash flow to between 14-16% of sales by the year 2015, it added.

($1 = Swfr0.92)

By: Samuel Wong

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