Givaudan Exceeds Forecasts on Q1 Organic Sales Growth Driven by Fragrance Demand
Givaudan's Q1 Performance and Market Response
By Rafal Wojciech Nowak
April 14 (Reuters) - Swiss fragrance and flavour maker Givaudan reported higher than expected first-quarter like-for-like sales growth on Tuesday, as robust demand for perfumes and consumer products offset a decline in its food ingredients business.
Share Price Reaction
At 0728 GMT, shares in the company were up 5.6%, hitting their highest level in over a month.
Sales Growth Overview
Givaudan's quarterly sales rose 2.8% excluding the impact of currency changes, acquisitions and disposals. That was ahead of a company-compiled consensus forecast of 1.9%. The growth was driven almost entirely by volumes, analysts said.
Fragrance & Beauty Unit Performance
A slower start to 2026, with group organic growth decelerating from 7.4% a year ago, was cushioned by a strong performance in its fragrance & beauty unit where like-for-like sales grew 5.9%, beating a consensus estimate of 4.1%.
Key Drivers in Fragrance & Beauty
Growth in the division, which creates scents for perfumes and household products, was driven by strong performances in its perfumery and personal and home care businesses.
Analyst Insights
J.P. Morgan analyst Celine Pannuti said the results "signal a good start to the year for fragrances and beauty", adding they could offer a positive read-across for beauty players L'Oréal and Puig.
Taste & Wellbeing Unit Performance
But Givaudan's taste & wellbeing unit, which supplies flavours for food and drinks, saw its organic sales decline 0.4%, with the sharpest drop in South Asia, the Middle East and Africa, where sales fell 7.1%.
Financial Impact and Outlook
On a reported basis, sales fell 5.2% to 1.88 billion Swiss francs ($2.40 billion), as a 9.2% currency headwind from the strengthening franc weighed on its results.
Price Increases and Future Expectations
The company said it was implementing price increases to offset rising input costs in 2026, which Pannuti said pointed to "a progressive price acceleration in the coming quarters."
($1 = 0.7829 Swiss francs)
(Editing by Milla Nissi-Prussak and Matt Scuffham)
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