Technology continues to be a major priority for Firmenich International SA, which has announced plans to continue investing for the long-term, notwithstanding any near-term challenges. In the release of its full year results ended 30 June 2020, the flavour powerhouse acknowledges that it is operating in a context of “unparalleled uncertainty.”
Despite facing significant global challenges as a result of Covid-19, Firmenich has seen growth of 2.8 % on a local currency basis, bringing group revenue up to CHF 3,878 m. The company has reported an adjusted Ebitda of CHF 859 m, representing a margin of 22.1 %. The company says that this margin is due to continued productivity gains and cost discipline. Meanwhile, free cash flow reached CHF 454 m, marking a nearly 8 % increase from FY 2019. This mainly stems from Firmenich’s focus on cost reduction and cash preservation measures in response to the Covid-19 crisis.
Notably, the Flavours arm of the company saw 3.8 % revenue growth, in comparison to 2.2 % growth in Perfumery & Ingredients. Worldwide lockdowns and travel bans affected some of the business segments, in particular Foodservice and Fine Fragrance, with a knock-on effect on perfumery ingredients. This impact was offset by a strong performance in Savoury, Sugar Reduction, Plant-Based Proteins, Personal Care, Body Care and Home Care.