Givaudan perfume sales recover in first quarter

Swiss fragrance and flavor maker Givaudan has reported better than expected Q1 income, with progress driven by a return to growth in fine fragrances, a segment heavily affected by the closure of stores and airport boutiques last year. 

The Geneva-based group saw its net income rise 16.3% compared to the first quarter of the previous year, totaling 481 million Swiss francs (444 million euros), while revenue at the company grew 4.7% to 3.3 billion francs, as reported in a press release. 

By comparison, financial analysts surveyed by Swiss business news agency AWP had, on average, expected the company to achieve income of 453 million francs on revenues of 3.3 billion. 

Sales in the group's perfume and beauty division increased 10.1%, excluding the impact of exchange rate fluctuations and acquisitions, with fine fragrance, which was one of the segments most strongly affected by the health crisis, seeing its sales bounce back 34.5%, following a decline of 16.4% in the first quarter of last year. 

The cosmetic ingredients segment, which posted a slight decrease of 0.1% in the prior-year period, also saw its sales take off again, posting growth of 14.4%. 

In the company's flavor division, however, operations linked to fast food "continued to suffer the effects of the pandemic," although Givaudan has noted "strong recovery" in the second quarter as health restrictions have been relaxed. 

The flavor division nonetheless saw an increase of 6.1% in its sales, driven by progress in other segments, such as vegetable proteins, beverage flavorings and natural flavors. 

Despite Covid-19's impact on fine fragrance and restaurant services, Givaudan is one of a group of companies which have come out of the health crisis relatively unscathed, having even managed to achieve growth in its revenue and income in the first half of last year. 

Declines in fine fragrance were largely offset by demand for scents for soaps, hygiene products and detergents, while the slow-down in restaurant services was more than compensated for by demand for flavorings for food products consumed at home. 

Givaudan has confirmed its financial objectives for both the mid and the long term, and is still shooting for organic sales growth of between 4% and 5% in the period leading up to 2025.