Givaudan confirms 4-5% organic growth target for next 5 years

Credit: REUTERS/ARND WIEGMANN

Givaudan still aims to increase its organic sales by 4-5% on average per year until 2025, mainly due to smaller local customers and fast-growing China, the fragrance and flavour maker said on Thursday.

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ZURICH, Aug 27 (Reuters) - Givaudan GIVN.Sstill aims to increase its organic sales by 4-5% on average per year until 2025, mainly due to smaller local customers and fast-growing China, the fragrance and flavour maker said on Thursday.

Givaudan has weathered the COVID-19 pandemic relatively well so far as many consumers stocked up on packaged foods and household goods containing its flavours and fragrances during lockdowns.

The Swiss company made no mention of current trading conditions in a statement on Thursday ahead of an investor event in Zurich.

The Geneva-based company said it wanted to keep expanding beyond its current portfolio into nutrition, food ingredients and beauty, focus on the fast-growing business with smaller and local brands and keep investing in high-growth markets like China.

It renamed its flavour division, which makes flavours for food and drinks, to "Taste & Wellbeing" and relabelled its fragrance unit, which makes scents for perfumes and household goods like toothpaste and soap as "Fragrance & Beauty".

Givaudan slightly lowered its ambitions for cash flow to "at least 12%" from 12-17% of sales during the previous cycle ending at the end of 2020.

(Reporting by Silke Koltrowitz, editing by John Revill)

((silke.koltrowitz@thomsonreuters.com; +41 41 528 3638;))

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