Agenda-setting intelligence, analysis and advice for the global fashion community.
Swiss fragrance and flavour maker missed expectations for yearly organic sales growth on Thursday, as a weaker performance of its flavours business outweighed resilient growth in fine fragrances.
As of yesterday, the company’s shares were down around 4.5 percent, trading at their lowest levels since October 2023.
Annual growth slowed to 5.1 percent, missing the 5.2 percent market forecast and Givaudan’s own 5.5 percent guidance. The miss was largely down to the Taste & Wellbeing business, which supplies flavours for food and drinks, analysts from Jefferies said in a note.
Notably, the flavours unit’s sales in the Asia Pacific fell 0.8 percent on a like-for-like basis, the only region to see no growth in 2025, Givaudan said.
ADVERTISEMENT
Annual sales growth moderated in several markets, following an exceptionally strong 2024, finance chief Stewart Harris told Reuters, adding the year was marked by tougher conditions for Taste & Wellbeing in some regions, including Southeast Asia and Mexico.
The Fragrance & Beauty business, which creates scents for perfumes and household products, saw its like-for-like sales rise 7.9 percent, driven by an 18.3 percent surge in fine fragrances that offset a decline in ingredients for fragrances and beauty products.
Chinese and Indian competition was fierce in parts of the fragrance ingredients portfolio, Harris said, but added Givaudan’s higher share of speciality products worked as a buffer.
The company expects a relatively limited impact from raw material costs in 2026, though tariff-related effects remain uncertain, he said.
Givaudan also faces pressure from the strengthening of the Swiss franc on its unadjusted results, as it generates most of its sales in foreign currencies that lose value when converted.
Its net profit fell 1.7 percent to 1.07 billion francs in 2025, as the strong reporting currency stripped 370 million francs from sales.
Givaudan proposed an annual dividend of 72 francs per share, up 2.9 percent from last year’s payout.
By Rafal Wojciech Nowakand Cian Muenster
ADVERTISEMENT
Learn more:
Givaudan Acquires US Perfume Manufacturer Belle Aire Creations
The purchase comes as the Swiss fragrance-maker seeks to strengthen its North American foothold by 2030.
