Givaudan : 2022 Half year results

Ad hoc announcement pursuant to artwork. 53 LR.

Sales of CHF 3,652 million, a rise of 6.2% on a like-for-like1 foundation and eight.3% in Swiss francs

Good gross sales efficiency throughout the portfolio and markets, regardless of sturdy prior year comparables

Comparable EBITDA3 of CHF 820 million, a margin of twenty-two.5% in comparison with 24.2% in 2021

Net earnings of CHF 440 million

Free money flow4 of -4.0% of gross sales or CHF -147 million, pushed by increased working capital necessities and investments

First sustainable-linked financing occasion with renewal of the Group Committed Credit Facility

“We are very happy with our strong efficiency within the first half of 2022, regardless of the difficult setting that we’re persevering with to function in. I’m pleased with the way in which through which we’ve got once more demonstrated the resilience of our enterprise and our sturdy deal with supporting the expansion of our prospects world wide.”

Gilles Andrier, CEO

Sales efficiency

Givaudan Group gross sales for the primary six months of the year had been CHF 3,652 million, a rise of 6.2% on a like-for-like1 foundation and eight.3% in Swiss francs.

In a really difficult working setting, pushed by increased enter prices and inbound provide chain disruptions, Givaudan sustained good enterprise momentum while sustaining its operations and world outbound provide chain at a excessive stage. The good progress was achieved throughout product segments and geographies, with the mature markets rising at 5.4% and the excessive progress markets at 7.4% on a like-for-like foundation.

With increased enter prices in 2022, the Company is properly on monitor in implementing worth will increase in collaboration with its prospects to totally compensate for the will increase in enter prices.Fragrance & Beauty gross sales had been CHF 1,646 million, a rise of 4.7% on a like-for-like1 foundation and 5.3% in Swiss francs, towards sturdy comparable progress of 10.1% in 2021. The good progress was pushed by continued sturdy quantity will increase in Fine Fragrances with a sustained excessive stage of latest enterprise, in addition to double-digit progress in Fragrance Ingredients. Consumer Products returned to progress within the second quarter and the demand for Fragrance Ingredients continued to stay sturdy.

On a enterprise unit stage Fine Fragrance gross sales elevated by 17.9% on a like-for-like foundation, Consumer Products gross sales elevated by 0.4% on a like-for-like foundation, and gross sales of Fragrance Ingredients and Active Beauty delivered progress of 8.0% on a like-for-like foundation.Taste & Wellbeing gross sales had been CHF 2,006 million, a rise of seven.6% on a like-for-like1 foundation and a rise of 10.9% in Swiss francs.

On a regional foundation, gross sales in Asia Pacific elevated by 5.1% on a like-for-like foundation; in South Asia, Africa and the Middle East, gross sales elevated by 16.9% on a like-for-like foundation; in Europe, gross sales elevated by 14.0% on a like-for-like foundation; in North America gross sales decreased by 0.9% on a like-for-like foundation, and in Latin America, gross sales elevated 17.1% on a like-for-like foundation.

Whilst the gross sales efficiency was nonetheless affected by the impression of the COVID-19 pandemic throughout many international locations, in addition to provide chain challenges, good enterprise momentum was maintained throughout all areas. The foodservice phase continued to expertise a robust restoration and is now virtually again to pre-COVID ranges. In the important thing strategic focus areas, gross sales elevated double-digit in plant-based proteins and well being & wellness and strong single-digit in Naturals.  

Gross revenue

The gross revenue decreased by 1.4% from CHF 1,480 million in 2021 to CHF 1,459 million in 2022, though the gross revenue elevated by 0.4% when measured in native foreign money phrases. Due to the gross margin dilution impact of the pricing actions to compensate for increased enter prices, in addition to the upper uncooked materials, vitality and freight prices, the gross margin decreased to 40.0% in 2022 in comparison with 43.9% in 2021.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)2

The EBITDA elevated by 0.9% to CHF 816 million from CHF 809 million for a similar interval in 2021, while the EBITDA margin was 22.4% in 2022 in comparison with 24.0% in 2021. On a comparable foundation, the EBITDA margin was 22.5% in 2022 in comparison with 24.2% in 2021. The impacts of upper enter prices on the gross revenue stage, in addition to increased outbound freight prices, had been partly compensated by strict value management throughout the enterprise throughout the first half of 2022.

The EBITDA of Fragrance & Beauty decreased to CHF 362 million in 2022 in comparison with CHF 375 million for the primary six months of 2021, while the EBITDA margin decreased to 22.0% in 2022 from 24.0% in 2021. On a comparable foundation the EBITDA margin of Fragrance & Beauty was 22.2% in 2022 in comparison with 24.2% in 2021.

The EBITDA of Taste & Wellbeing elevated to CHF 454 million from CHF 434 million in 2021, a rise of 4.5%, while the EBITDA margin decreased to 22.6% in 2022, from 24.0% in 2021. On a comparable foundation the EBITDA margin of Taste & Wellbeing was 22.7% in 2022 in comparison with 24.3% in 2021.

Operating earnings

The working earnings elevated to CHF 631 million, in comparison with CHF 613 million in 2021, a rise of two.9%. When measured in native foreign money phrases, the working earnings elevated by 5.5%. The working margin decreased to 17.3% in 2022 from 18.2% in 2021.

The working earnings for Fragrance & Beauty decreased to CHF 291 million in 2022, versus CHF 301 million for a similar interval in 2021. The working margin decreased to 17.7% in 2022 from 19.2% in 2021.

In Taste & Wellbeing, the working earnings elevated to CHF 340 million in 2022 from CHF 312 million in 2021, a rise of 8.7%. The working margin decreased to 16.9% in 2022 in comparison with 17.3% in 2021.

Financial efficiency

Financing prices had been CHF 48 million within the first half of 2022, secure versus CHF 46 million for a similar interval in 2021. Other monetary expense, internet of earnings, was CHF 71 million in 2022 versus CHF 1 million in 2021, with the rise associated to mark-to-market changes on marketable securities and elevated international change losses.

The interim interval earnings tax expense as a proportion of earnings earlier than taxes was 14% in 2022, in contrast with 15% for a similar interval in 2021.

Net earnings

The internet earnings for the primary six months of 2022 was CHF 440 million in comparison with CHF 481 million in 2021, leading to a internet revenue margin of 12.1% versus 14.3% in 2021. Basic earnings per share had been CHF 47.74 versus CHF 52.19 for a similar interval in 2021.

Cash stream

Givaudan delivered an working money stream of CHF 131 million for the primary six months of 2022, in comparison with CHF 415 million in 2021.

Net working capital was 29.6% of gross sales in comparison with 28.3% in 2021, with increased accounts receivable and stock ranges associated to the nice gross sales progress and persevering with provide chain challenges, significantly on the inbound provide chain.Total internet investments in property, plant and gear had been CHF 130 million, in comparison with CHF 79 million in 2021. Intangible asset additions had been CHF 34 million in 2022, in comparison with CHF 41 million in 2021, because the Company continues to spend money on its IT and digital platform capabilities and in bringing all acquired entities on to the Givaudan working platforms.

Total internet investments in tangible and intangible property had been 4.5% of gross sales, in comparison with 3.6% in 2021.

Operating money stream after internet investments was CHF -33 million versus CHF 295 million recorded in 2021. Free money flow4 was CHF -147 million within the first half of 2022, versus CHF 186 million for the comparable interval in 2021. As a proportion of gross sales, free money stream within the first six months of 2022 was -4.0%, in comparison with 5.5% in 2021.

Financial place

Givaudan’s monetary place remained strong on the finish of June 2022, because the Company continues to speculate for future progress, while managing the brief time period working capital challenges. Net debt at June 2022 was CHF 5,129 million, up from CHF 4,394 million on the finish of December 2021 and CHF 4,727 million in June 2021. The internet debt to EBITDA ratio5 was 3.45, in comparison with 2.97 on the finish of December 2021.

In June 2022, the Group refinanced its multi-bank dedicated credit score facility within the quantity of CHF 1.25 billion for a interval of 5 years, with two-year extension choices and the likelihood to upsize the power throughout its time period. This renewed facility can be the primary financing occasion accomplished beneath the Group’s sustainable-linked financing framework.

Our mid and long run ambition

Our 2025 technique, ‘Committed to Growth, with Purpose’, is our intention to ship progress in partnership with our prospects, by means of creating inspiring merchandise for happier, more healthy lives and having a constructive impression on nature, folks and communities.

Ambitious targets are an integral a part of this technique, with the Company aiming to attain natural gross sales progress of 4-5% on a like-for-like basis1 and free money flow4 of at the very least 12%, each measured as a mean over the five-year interval technique cycle. In addition, we purpose to ship on key non-financial targets round sustainability, range and security, linked to Givaudan’s goal.

Our daring and impressive long-term goal targets are outlined in 4 domains: creations, nature, folks and communities. Our ambitions embody doubling our enterprise by means of creations that contribute to happier, more healthy lives by 2030, turning into local weather constructive earlier than 2050, turning into a number one employer for inclusion earlier than 2025 and sourcing all supplies and providers in a means that protects the setting and folks by 2030.

Further data

The 2022 Half Year Report could be downloaded on www.givaudan.com: 2022 Half Year Report, 2022 Half Year Financial Summary.

A convention name will likely be broadcast on www.givaudan.com on Thursday 21 July 2022 at 15:00 CEST.

Further data and reconciliations of the Group’s Alternative Performance Measures could be discovered within the Appendix of the 2022 Half Year Report.

Upcoming Company Events Half year convention – 30 August 2022Nine month gross sales – 11 October 2022Investor Day – 20 October 2022Full year results – 25 January 2023

ContactPierre Bénaich, Head of Investor and Media RelationsT +41 22 780 [email protected]

Key tables

Key figures

For the six months ended 30 June

In hundreds of thousands of Swiss francs apart from earnings per share knowledge

2022

2021

Group gross sales

3,652

3,373

– Fragrance & Beauty gross sales

1,646

1,564

– Taste & Wellbeing gross sales

2,006

1,809

Gross revenue

1,459

1,480

– As % of gross sales

40.0%

43.9%

EBITDA2

816

809

– As % of gross sales

22.4%

24.0%

Operating earnings

631

613

– As % of gross sales

17.3%

18.2%

Income attributable to fairness holders of the mum or dad

440

481

– As % of gross sales

12.1%

14.3%

Earnings per share – fundamental (CHF)

47.74

52.19

Operating money stream

131

415

– As % of gross sales

3.6%

12.3%

Free money stream

-147

186

– As % of gross sales

-4.0%

5.5%

In hundreds of thousands of Swiss francs besides for workers

30 June

2022

31 December2021

– Current property

3,942

3,407

– Non-current property

7,972

8,027

Total property

11,914

11,434

– Current liabilities

2,872

2,322

– Non-current liabilities

5,021

5,171

– Equity

4,021

3,941

Total liabilities and fairness

11,914

11,434

Number of workers

16,815

16,842

EBITDA

In hundreds of thousands of Swiss francs apart from earnings per share knowledge

2022

2021

Group

Fragrance& Beauty

Taste &Wellbeing

Group

Fragrance& Beauty

Taste &Wellbeing

EBITDA as revealed

816

362

454

809

375

434

EBITDA as revealed in %

22.4%

22.0%

22.6%

24.0%

24.0%

24.0%

– Givaudan Business Solutions (GBS) prices

-1

-1

– Acquisitions and restructuring bills a

-4

-3

-1

-7

-2

-5

Comparable EBITDA 3

820

365

455

817

378

439

Comparable EBITDA in %

22.5%

22.2%

22.7%

24.2%

24.2%

24.3%

Acquisition and restructuring bills incurred of CHF 4 million (2021: CHF 7 million) are largely associated to the acquisitions that the Group has undertaken and the continued optimisation of the manufacturing footprint.

Sales efficiency – January to June

In hundreds of thousands of Swiss francs

2021

2022

Change %

2022

Change %

Sales asreported

LFLdevelopment1

SalesLFL

LFL basis1

Acquisitionimpact (internet)*

Currencyeffects

Sales asReported

In Swissfrancs

Group

3,373

211

3,584

6.2%

92

-24

3,652

8.3%

– Fragrance& Beauty

1,564

74

1,638

4.7%

21

-13

1,646

5.3%

– Taste& Wellbeing

1,809

137

1,946

7.6%

71

-11

2,006

10.9%

* Acquisition impression (internet)in hundreds of thousands of Swiss francs

Acquired firm

Sales included from

Group

Fragrance & Beauty

Taste & Wellbeing

Custom Essence

December 2021

21

21

DDW

December 2021

77

77

Discontinued anddisposed enterprise

-6

-6

Total

92

21

71

Sales efficiency – April to June (quarter solely)

In hundreds of thousands of Swiss francs

2021

2022

Change %

2022

Change %

Sales asreported

LFLdevelopment1

SalesLFL

LFL basis1

Acquisitionimpact (internet)

Currencyeffects

Sales asReported

In Swissfrancs

Group

1,699

134

1,833

7.9%

46

-7

1,872

10.2%

– Fragrance& Beauty

776

54

830

6.9%

11

-5

836

7.7%

– Taste& Wellbeing

923

80

1,003

8.7%

35

-2

1,036

12.2%

Sales efficiency Fragrance & Beauty

In hundreds of thousands of Swiss francs

2021Sales growthLFL1

2022Sales growthLFL1

Fine Fragrances

34.5%

17.9%

Consumer Products

4.1%

0.4%

Fragrance Ingredients and Active Beauty

14.4%

8.0%

Sales efficiency Taste & Wellbeing

In hundreds of thousands of Swiss francs

2021Sales growthLFL1

2022Sales growthLFL1

Europe

1.7%

14.0%

South Asia, Middle East and Africa

3.5%

16.9%

North America

6.1%

-0.9%

Latin America

23.4%

17.1%

Asia Pacific

5.1%

5.1%

Sales evolution by market – January to June

In hundreds of thousands of Swiss francs

2021

2022

Change %

2022

Change %

Sales asreported

LFLdevelopment1

SalesLFL

LFL basis1

Acquisitionimpact (internet)

Currencyeffects

Sales asReported

In Swissfrancs

High progress market

1,435

106

1,541

7.4%

29

6

1,576

9.8%

Mature markets

1,938

105

2,043

5.4%

63

-30

2,076

7.1%

Sales evolution by area – January to June

In hundreds of thousands of Swiss francs

2022

2021

Change %

Change %

Sales as reported

Sales as reported

On LFL basis1

In Swiss francs

LATAM

420

365

9.0%

15.3%

APAC

883

851

2.7%

3.7%

NOAM

984

924

-1.5%

6.4%

EAME

1,365

1,233

13.7%

10.7%

Notes

Like-for-like (LFL) is outlined as: (a) gross sales calculated utilizing the invoicing change charges of the prior year, (b) excluding gross sales of companies acquired from the acquisition date till the interval finish date, as much as 12 months from the acquisition date, and (c) excluding gross sales of the companies disposed of from the disposal date till the interval finish date of the comparable prior interval.

EBITDA outlined as Earnings earlier than curiosity (and different monetary earnings (expense), internet), Tax, Depreciation and Amortisation, corresponds to working earnings earlier than depreciation, amortisation and impairment of long-lived property.

Comparable EBITDA is the reported EBITDA, as adjusted for important objects of a non-recurring nature which have an effect on the understanding of the underlying regular working actions.

Free money stream (FCF) refers to working money stream after internet investments, curiosity paid, lease funds and buy and sale of personal fairness devices.

Net debt to EBITDA ratio is outlined as follows:- Net debt is calculated as the overall of the consolidated short-term and long-term debt, much less money and money equivalents.- EBITDA is outlined as Earnings Before Interest (and different monetary earnings (expense), internet), Tax, Depreciation and Amortisation, corresponds to working earnings earlier than depreciation, amortisation and impairment of long-lived property.

https://www.marketscreener.com/quote/inventory/GIVAUDAN-SA-2956033/information/Givaudan-2022-Half-year-results-41039194/

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