Givaudan profit for 2010 has sweet smell

The Swiss fragrance and flavour maker, Givaudan, has reported a net profit of SFr340 million ($356.7 million) for last year, a 71 per cent increase on 2009.

However, the Geneva-based company warned that it expected an “overall strong raw material price increase” this year and indicated product price rises.

Total sales were SFr4.24 billion in 2010, a rise of 7.1 per cent in Swiss francs.

Givaudan reported that sales in the fragrance division totalled almost SFr2 billion (up nine per cent), while in the flavours division they reached SFr2.25 billion (up 5.4 per cent).

It added that in 2010 it had successfully completed the integration of Quest International, which started in 2007. Annual savings of SFr230 million were being generated from the combined operations of the two companies, a statement said.

The board of directors is to propose a cash dividend of SFr21.50 per share for 2010, the tenth consecutive dividend increase in the past ten years.