Linked to the Covid-19 pandemic, Givaudan’s Flavour Division experienced a shift in demand from foodservice and alcoholic beverages into established products in categories such as juice based beverages, culinary solutions, nutritional bars, savoury and snacks. This is in line with the company’s strong performance of high growth markets, which saw overall sales rise by 4 %, and Flavour Division sales increased 3.6 % (both on a like-for-like basis). According to the company, there was “excellent performance in parts of the portfolio that were not impacted by the pandemic.”
Good growth was achieved across most product segments and geographies, with a particularly strong performance in household, health and personal care segments within the Fragrance division, as well as in packaged foods, savoury, snacks and nutraceuticals in the Flavour Division.
According to Givaudan’s Flavour Division, sales were CHF 1,765 m, an increase of 3.6 % on a like-for-like basis. Both new and existing products drove the sales performance with strong business momentum across all regions coming from both global and local and regional customers. From a segment perspective, dairy, sweet goods, savoury and snacks were the main contributors to the division’s growth.
The EBITDA increased to CHF 401 m from CHF 390 m in 2019, an increase of 2.8 %, with continuing productivity gains and cost discipline contributing to the rise. The EBITDA margin was 22.7 % in 2020, up from 22.5 % in 2019. On a comparable basis, the Flavour Division’s EBITDA margin was 23.8 % in 2020 compared to 23.1 % in 2019. The operating income decreased to CHF 268 m in 2020 from CHF 278 m in 2019, a decrease of 3.5 %. The operating margin was 15.2 % in 2020, compared to 16 % in 2019.