Ad hoc announcement pursuant to article 53 LR
Sales of CHF 7.1 billion, a rise of 5.3% on a like-for-like1 foundation and 6.5% in Swiss francs
Strong efficiency in excessive progress markets with 9.9% progress on a like-for-like foundation
EBITDA2 of CHF 1,476 million and EBITDA margin of 20.7%, versus 22.2% in 2021
Comparable EBITDA3 margin of 20.9% in comparison with 22.5% in 2021
Net earnings of CHF 856 million, a rise of 4.2% over 2021
Free money flow4 of 6.7% of gross sales or CHF 479 million
Proposed dividend of CHF 67.00 per share, up 1.5% year-on-year
CDP Double A ranking for local weather and water for the fourth consecutive year
“We are very happy with our stable efficiency in 2022, regardless of the difficult atmosphere that we now have confronted all through the year. Once once more we now have demonstrated our sturdy give attention to supporting the expansion of our prospects by means of wonderful provide chain efficiency, while on the identical time delivering modern and impactful options that are a key a part of our 2025 technique. With the continuing challenges which the exterior atmosphere brings, I’m extraordinarily grateful to all Givaudan staff world wide for his or her continued dedication in supporting us in persevering with to ship trade main efficiency.”
CEO Gilles Andrier
Sales efficiency
Full year Group gross sales had been CHF 7,117 million, a rise of 5.3% on a like-for-like (LFL) foundation and 6.5% in Swiss francs when in comparison with 2021.
In a really difficult working atmosphere, 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 to help the expansion of our prospects. The good progress was achieved throughout product segments and geographies, with the mature markets rising at 1.9% and the excessive progress markets at 9.9% on an LFL foundation. The key strategic progress pillars of the Company’s 2025 technique all contributed positively to the expansion.
The Company continues to implement value will increase in collaboration with its prospects to totally compensate for the will increase in enter prices.
Fragrance & Beauty gross sales had been CHF 3,256 million, a rise of 5.5% LFL and 5.3% in Swiss francs. The good progress was pushed by the sustained sturdy efficiency of Fine Fragrances and Fragrance Ingredients mixed with the return to good progress momentum within the Consumer Products enterprise within the second half of 2022. In Active Beauty the single-digit progress was achieved towards a excessive double-digit comparable progress in 2021. Across all companies and buyer teams, the nice efficiency was supported by the elevated influence within the second half of the year of the pricing actions applied with prospects to compensate for the will increase in enter prices.
On a enterprise unit stage Fine Fragrance gross sales elevated by 14.3% LFL, Consumer Products gross sales elevated by 2.0% LFL, and gross sales of Fragrance Ingredients and Active Beauty delivered progress of 10.2% LFL.
Sales in Taste & Wellbeing had been CHF 3,861 million, a rise of 5.2% on a LFL foundation and a rise of seven.5% in Swiss francs.
On a regional foundation, gross sales in Asia Pacific elevated by 5.3% LFL; in South Asia, Africa and the Middle East, gross sales elevated by 17.6% LFL; in Europe, gross sales elevated by 11.1% LFL; in North America gross sales decreased by 6.4% LFL; and in Latin America, gross sales elevated by 16.7% LFL foundation.
In the important thing strategic focus areas, stable single-digit gross sales will increase had been recorded in plant-based proteins, well being & wellness and in Naturals.
Gross margin
The gross revenue decreased from CHF 2,855 million in 2021 to CHF 2,762 million in 2022. The gross margin decreased to 38.8% in 2022 in comparison with 42.7% in 2021 primarily because of the dilution impact of the pricing actions to compensate for increased enter prices, in addition to the upper uncooked materials, vitality and freight prices.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)2
The EBITDA2 decreased by 0.4% to CHF 1,476 million in 2022 in comparison with CHF 1,482 million in 2021, with sturdy working price self-discipline partially offsetting the decrease gross revenue stage. The EBITDA margin was 20.7% in 2022 in comparison with 22.2% in 2021, while on a comparable basis3, the EBITDA margin was 20.9% in 2022 in comparison with 22.5% in 2021.
The EBITDA of Fragrance & Beauty elevated to CHF 698 million in 2022 in comparison with CHF 696 million in 2021, while the EBITDA margin decreased to 21.4% in 2022 from 22.5% in 2021. On a comparable foundation the EBITDA margin of Fragrance & Beauty was 21.6% in 2022 in comparison with 22.6% in 2021.
The EBITDA of Taste & Wellbeing decreased to CHF 778 million from CHF 786 million in 2021, while the EBITDA margin decreased to twenty.1% in 2022, from 21.9% in 2021. On a comparable foundation the EBITDA margin of Taste & Wellbeing was 20.3% in 2022 in comparison with 22.4% in 2021.
Operating earnings
The working earnings was CHF 1,112 million in comparison with CHF 1,089 million, a rise of two.1% versus 2021. The working margin was 15.6% in 2022 in comparison with 16.3% in 2021.
The working earnings for Fragrance & Beauty elevated to CHF 558 million in 2022, versus CHF 547 million in 2021. The working margin decreased to 17.1% in 2022 from 17.7% in 2021.
In Taste & Wellbeing, the working earnings elevated to CHF 554 million in 2022 from CHF 542 million in 2021. The working margin decreased to 14.4% in 2022 in comparison with 15.1% in 2021.
Financial efficiency
Financing prices in 2022 had been CHF 100 million versus CHF 94 million in 2021. Other monetary expense, web of earnings, was CHF 84 million in 2022 in contrast with CHF 30 million in 2021, with the rise associated to mark-to-market changes on marketable securities and elevated international change losses.
The earnings tax expense as a proportion of earnings earlier than taxes was 8%, in comparison with 15% in 2021, with the discount largely as a result of one-time tax results of inside publish acquisition entity restructuring. Excluding these one-time results, the earnings tax expense as a proportion of gross sales earlier than tax would have been 15%.
Net earnings
The web earnings was CHF 856 million in 2022 in comparison with CHF 821 million in 2021, a rise of 4.2%, leading to a web revenue margin of 12.0% versus 12.3% in 2021. Basic earnings per share had been CHF 92.83 in comparison with CHF 89.03 for a similar interval in 2021.
Cash stream
Givaudan delivered an working money stream of CHF 948 million in 2022, in comparison with CHF 1,288 million in 2021.
Net working capital as a proportion of gross sales was 26.8%, in comparison with 24.0% in 2021.
Total web investments in property, plant and tools had been CHF 211 million, in comparison with CHF 177 million in 2021, with the easing of COVID-19 restrictions world wide supporting the next stage of venture exercise in 2022.
Intangible asset additions had been CHF 78 million in 2022, in comparison with CHF 70 million in 2021 because the Company continued to put money into its digital roadmap and in bringing all acquired entities on to the Givaudan working platform.
Total web investments in tangible and intangible belongings had been 4.1% of gross sales in 2022, in comparison with 3.7% in 2021.
Operating money stream after web investments was CHF 659 million in 2022, versus CHF 1,041 million in 2021. Free money flow4 was CHF 479 million in 2022, versus CHF 843 million for the comparable interval in 2021. As a proportion of gross sales, free money stream in 2022 was 6.7%, in comparison with 12.6% in 2021.
Financial place
Givaudan’s monetary place remained stable on the finish of the year. Net debt at December 2022 was CHF 4,530 million, in comparison with CHF 4,394 million at December 2021. The web debt to EBITDA ratio5 was 3.07, in comparison with 2.97 at December 2021.
Dividend proposal
At the Annual General Meeting on 23 March 2023, Givaudan’s Board of Directors will suggest a money dividend of CHF 67.00 per share for the monetary year 2022, a rise of 1.5% versus 2021. This is the twenty-second consecutive dividend enhance following Givaudan’s itemizing on the Swiss inventory change in 2000.
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 optimistic influence 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-like1 foundation and free money flow4 of not less than 12%, each measured as a median 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 function.
Our daring and bold long-term function objectives 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, changing into local weather optimistic earlier than 2050, changing into a number one employer for inclusion earlier than 2025 and sourcing all supplies and companies in a method that protects the atmosphere and other people by 2030.
Further info
At the Annual General Meeting on 23 March 2023, Prof. Dr-Ing. Werner Bauer, Lilian Biner and Michael Carlos will retire from the Board of Directors, with all different Board members standing for re-election. In addition, the Board of Directors will suggest to the Annual General Meeting of shareholders on 23 March 2023 to elect Roberto Guidetti as a brand new Board member, with impact as of the date of the Annual General Meeting of shareholders. All Board members can be elected for a time period of workplace ending on the Annual General Meeting.
The 2022 Full Year Report could be downloaded on www.givaudan.com: 2022 Integrated Annual Report, 2022 Governance, Compensation and Financial Report.
Further info and reconciliations of the Group’s Alternative Performance Measures could be discovered within the Appendix of the 2022 Financial Report.
A convention name can be broadcast on www.givaudan.com on Wednesday 25 January 2023 at 15:00 CET.
Upcoming Company occasions
AGM – 23 March 2023
First quarter gross sales and annual investor convention – 13 April 2023
Half year results – 20 July 2023
Half year convention – 30 August 2023
Nine month gross sales – 12 October 2023
Investor day – 19 October 2023
Full year results – 25 January 2024
Contact
Pierre Bénaich, Head of Investor and Media Relations
T +41 22 780 9053
Key tables
Key figures
For the twelve months ended 31 December
In hundreds of thousands of Swiss francs aside from earnings per share information
2022
2021
Group gross sales
7,117
6,684
– Fragrance & Beauty gross sales
3,256
3,091
– Taste & Wellbeing gross sales
3,861
3,593
Gross revenue
2,762
2,855
– As % of gross sales
38.8%
42.7%
EBITDA2
1,476
1,482
– As % of gross sales
20.7%
22.2%
Operating earnings
1,112
1,089
– As % of gross sales
15.6%
16.3%
Income attributable to fairness holders of the father or mother
856
821
– As % of gross sales
12.0%
12.3%
Earnings per share – primary (CHF)
92.83
89.03
Operating money stream
948
1,288
– As % of gross sales
13.3%
19.3%
Free money stream
479
843
– As % of gross sales
6.7%
12.6%
In hundreds of thousands of Swiss francs besides for workers
31 December
2022
31 December2021
– Current belongings
3,707
3,407
– Non-current belongings
7,802
8,027
Total belongings
11,509
11,434
– Current liabilities
1,971
2,322
– Non-current liabilities
5,301
5,171
– Equity
4,237
3,941
Total liabilities and fairness
11,509
11,434
Number of staff
16,676
16,842
EBITDA
In hundreds of thousands of Swiss francs
2022
2021
Group
Fragrance& Beauty
Taste &Wellbeing
Group
Fragrance& Beauty
Taste &Wellbeing
EBITDA as printed
1,476
698
778
1,482
696
786
EBITDA as printed in %
20.7%
21.4%
20.1%
22.2%
22.5%
21.9%
– Acquisitions and restructuring bills a
-10
-4
-6
-22
-2
-20
Comparable EBITDA 3
1,486
702
784
1,504
698
806
Comparable EBITDA in %
20.9%
21.6%
20.3%
22.5%
22.6%
22.4%
Sales efficiency – January to December
In hundreds of thousands of Swiss francs
2021
2022
Change %
2022
Change %
Sales asreported
LFLdevelopment1
SalesLFL1
LFLbasis1
Acquisitionimpact (web)*
Currencyeffects
Sales asreported
In Swissfrancs
Group
6,684
356
7,040
5.3%
167
-90
7,117
6.5%
– Fragrance & Beauty
3,091
170
3,261
5.5%
36
-41
3,256
5.3%
– Taste & Wellbeing
3,593
186
3,779
5.2%
131
-49
3,861
7.5%
* Acquisition influence (web)in hundreds of thousands of Swiss francs
Acquired firm
Sales included from
Group
Fragrance & Beauty
Taste &Wellbeing
Custom Essence
December 2021
36
36
DDW
December 2021
140
140
Discontinued anddisposed enterprise
-9
-9
Total
167
36
131
Sales efficiency – October to December (quarter solely)
In hundreds of thousands of Swiss francs
2021
2022
Change %
2022
Change %
Sales asreported
LFLdevelopment1
SalesLFL1
LFLbasis1
Acquisitionimpact (web)
Currencyeffects
Sales asreported
In Swissfrancs
Group
1,618
46
1,664
2.9%
27
-33
1,658
2.5%
– Fragrance& Beauty
740
34
774
4.5%
5
-12
767
3.6%
– Taste& Wellbeing
878
12
890
1.5%
22
-21
891
1.5%
Sales efficiency Fragrance & Beauty
In hundreds of thousands of Swiss francs
2021Sales growthLFL1
2022Sales growthLFL1
Fine Fragrances
22.5%
14.3%
Consumer Products
1.5%
2.0%
Fragrance Ingredients and Active Beauty
14.2%
10.2%
Sales efficiency Taste & Wellbeing
In hundreds of thousands of Swiss francs
2021Sales growthLFL1
2022Sales growthLFL1
Europe
6.3%
11.1%
South Asia, Middle East and Africa
6.1%
17.6%
North America
5.8%
-6.4%
Latin America
19.3%
16.7%
Asia Pacific
7.4%
5.3%
Sales evolution by market – January to December
In hundreds of thousands of Swiss francs
2021
2022
Change %
2022
Change %
Sales asreported
LFLdevelopment1
SalesLFL1
LFLbasis1
Acquisitionimpact (web)
Currencyeffects
Sales asreported
In Swissfrancs
High progress market
2,853
282
3,135
9.9%
49
-28
3,156
10.6%
Mature markets
3,831
74
3,905
1.9%
118
-62
3,961
3.4%
Sales evolution by area – January to December
In hundreds of thousands of Swiss francs
2022
2021
Change %
Change %
Sales as reported
Sales as reported
LFL basis1
In Swiss francs
LATAM
838
723
10.4%
15.9%
APAC
1,772
1,688
5.2%
5.0%
NOAM
1,881
1,824
-5.4%
3.1%
EAME
2,626
2,449
11.9%
7.2%
Notes
Interviews
CNBC interview
with CEO on
the 2022 full year results
Watch
Bloomberg interview
with CEO on
the 2022 full year results
Watch
https://information.google.com/__i/rss/rd/articles/CBMiSWh0dHBzOi8vd3d3LmdpdmF1ZGFuLmNvbS9tZWRpYS9tZWRpYS1yZWxlYXNlcy8yMDIzLzIwMjItZnVsbC15ZWFyLXJlc3VsdHPSAQA?oc=5
