In the first nine months of 2015 Givaudan recorded sales of CHF 3,296 million (US$3,440.67 million), an increase of 2.0% on a like‑for‑like basis and a decline of 0.5% in Swiss francs compared to the previous year.
The company’s guidance for the period 2010-2015 is to grow organically between 4.5% and 5.5% per annum, assuming a market growth of 2‑3%, and to continue on the path of market share gains.
It expects to outgrow the underlying market and to continue to achieve its industry‑leading EBITDA margin while targeting an annual free cash flow of between 14% and 16% of sales by 2015.
Givaudan confirms its intention to return above 60% of the company’s free cash flow to shareholders while maintaining a medium term leverage ratio target below 25%.
Flavor Division sales were CHF1,733 million (US$1,806.22 million) during the first nine months of 2015, an increase of 3.3% on a like‑for‑like basis and 0.4% in Swiss francs, driven by a continued good performance in North and Latin America and an improvement in the developing markets.
Growth in the beverage and dairy segments was as a result of new wins and a solid existing business.
The positive momentum of health and wellness in all regions continued with improved taste solutions being provided to the division’s customers.
Sales in Asia Pacific increased by 1.9% on a like‑for‑like basis.
New wins and existing business growth in China and India contributed to the growth.
The mature markets continued to grow reversing a slow start to the year with a particularly good performance in Japan.
The snacks and dairy segments demonstrated growth as a result of new wins.
Europe, Africa, Middle East
Sales were flat on a like‑for‑like basis with developing markets delivering a growth during the quarter driven by Africa and Middle East markets.
Challenging economic conditions continue to impact growth in Eastern Europe, particularly in Russia and Ukraine. Performance in the mature markets has evolved positively for the year with the dairy, snacks and savory segments increasing as a result of new wins and existing business growth.
Sales increased 6.7% on a like‑for‑like basis.
The strong momentum continued into the third quarter of the year.
The strong sales growth was attributed to existing business growth and new wins with a particularly good performance in the beverage, dairy and snacks segments.
Growth in Latin America was 10.4% on a like‑for‑like basis with strong sales coming from Argentina, Brazil and Mexico.
All segments grew with a particularly good performance in the beverage, savory and sweet goods segments as a result of new wins and existing business growth.