(Reuters) -Swiss fragrance and flavour maker Givaudan reported third-quarter sales above analysts’ expectations on Thursday, driven by sustained high demand across its markets.
Givaudan’s sales rose 10.2% to 1.91 million Swiss francs ($2.22 million) on a reported basis in the July-September period, ahead of analysts’ average forecast of 1.86 billion francs in a poll compiled by the company.
While the rest of the European chemicals sector, and Germany in particular, is grappling with weak demand amid a sluggish economy, companies engaged in the fragrance and flavour markets have seen strong growth in sales.
A wave of destocking amid softer demand hit Givaudan’s volumes last year, but strong sales growth has boosted its profitability since then.
“We are able to continue to support the strong and broad based volume demand from our customers,” CEO Gilles Andrier said in the statement.
On a like-for-like basis, Givaudan’s sales rose 14.1% in the third quarter, above the 10.4% growth expected by analysts. They have been growing in a double-digit percentage since the beginning of 2024.
On the same basis, sales at the Taste & Wellbeing business, which make up more than half of Givaudan’s revenue, increased by 12.4% from a year earlier, while sales at the Fragrance & Beauty unit were up 16.0%.
($1 = 0.8604 Swiss francs)
(Reporting by Jagoda Darlak and Matteo Allievi in Gdansk; editing by Milla Nissi)
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