The fine performance of the third quarter of 2001 is expected to carry through to the year-end for Geneva-based group Givaudan, as it expects a good result for the full year.This content was published on October 11, 2001 - 11:12
Sales at the world's second-largest flavours and fragrances company rose by 5.2 per cent in local currencies and 4.0 per cent in Swiss francs in the first nine months of 2001 to SFr1.86 billion ($1.14 billion).
"Barring unforeseen events, Givaudan expects an overall good result for the full year," it said.
The company cited a substantial number of projects with core customers that should ensure growth despite the current economic and political uncertainty.
Predictions proved accurate
The sales number was exactly in line with the expectations of analysts, who had thought a strong Swiss franc and the impact of suicide attacks on landmarks in the United States last month might have weighed on sales growth.
Givaudan, which was spun-off from Roche last year, had boosted sales by 4.7 per cent in the first half to SFr1.26 billion. First-half sales had risen 5.2 per cent in local currencies.
It had said in August that it expected good results for 2001 after first-half net profit rose 16 per cent to SFr149 million.
Second to sector leader International Flavours and Fragrances, Givaudan has expressed confidence it can consistently grow faster than the overall market, which is expanding by two to three per cent a year.
North American sales up
Givaudan sales nine-month sales of fragrances rose 2.4 per cent in local currencies and 1.4 per cent in Swiss francs to SFr868.2 million, while flavours turnover rose a brisk 7.9 per cent in local currencies and 6.4 per cent in Swiss francs to SFr993.1 million.
In flavours, sales in North America continued to grow well amid several product launches by food and beverage clients. European sales also grew, thanks in part to major new projects in the first half.
In fragrances, slowing economic growth in North America and Europe weighed on business. "Diminished consumer confidence translated into lower sales of fine fragrances," the company said in its statement.
swissinfo with agencies
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