Givaudan : 2022 Full Year Results

Givaudan : 2022 Full Year Results
Givaudan : 2022 Full Year Results

Company information

Ad hoc announcement pursuant to article 53 LR

Geneva, 25 January 2023

2022 Full 12 months outcomes

Solid enterprise efficiency in a difficult setting

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 development markets with 9.9% development 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 revenue 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 score for local weather and water for the fourth consecutive 12 months

“We are very happy with our stable efficiency in 2022, regardless of the difficult setting that we’ve confronted all year long. Once once more we’ve demonstrated our sturdy deal with supporting the expansion of our prospects via glorious provide chain efficiency, while on the identical time delivering progressive and impactful options that are a key a part of our 2025 technique,” mentioned CEO Gilles Andrier.

“With the continuing challenges which the exterior setting brings, I’m extraordinarily grateful to all

Givaudan workers all over the world for his or her continued dedication in supporting us in persevering with to

ship trade main efficiency.”

Sales efficiency

Full 12 months 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 setting, pushed by increased enter prices and inbound provide chain disruptions, Givaudan sustained good enterprise momentum while sustaining its operations and international outbound provide chain at a excessive stage to help the expansion of our prospects. The good development was achieved throughout product segments and geographies, with the mature markets rising at 1.9% and the excessive development markets at 9.9% on an LFL foundation. The key strategic development pillars of the Company’s 2025 technique all contributed positively to the expansion.

The Company continues to implement worth will increase in collaboration with its prospects to completely 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 development was pushed by the sustained sturdy efficiency of Fine Fragrances and Fragrance Ingredients mixed with the return to good development momentum within the Consumer Products enterprise within the second half of 2022. In Active Beauty the single-digit development was achieved in opposition to a excessive double-digit comparable development in 2021. Across all companies and buyer teams, the nice efficiency was

Givaudan International SA

Chemin de la Parfumerie 5 · 1214 Vernier · Switzerland

Phone +41 22 780 91 11 · www.givaudan.com

Ad hoc announcement pursuant to article 53 LR

Geneva, 25 January 2023

supported by the elevated affect within the second half of the 12 months of the pricing actions carried out 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 development 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 on account of the dilution impact of the pricing actions to compensate for increased enter prices, in addition to the upper uncooked materials, power 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 value 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 revenue

The working revenue 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 revenue 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.

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Ad hoc announcement pursuant to article 53 LR

Geneva, 25 January 2023

In Taste & Wellbeing, the working revenue 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 revenue, 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 revenue tax expense as a share of revenue earlier than taxes was 8%, in comparison with 15% in 2021, with the discount largely because of the one-time tax results of inner publish acquisition entity restructuring. Excluding these one-time results, the revenue tax expense as a share of gross sales earlier than tax would have been 15%.

Net revenue

The web revenue 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 circulate

Givaudan delivered an working money circulate of CHF 948 million in 2022, in comparison with CHF 1,288 million in 2021.

Net working capital as a share of gross sales was 26.8%, in comparison with 24.0% in 2021.

Total web investments in property, plant and gear had been CHF 211 million, in comparison with CHF 177 million in 2021, with the easing of COVID-19 restrictions all over the world supporting a better stage of undertaking 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 spend money on its digital roadmap and in bringing all acquired entities on to the Givaudan working platform.

Total web investments in tangible and intangible property had been 4.1% of gross sales in 2022, in comparison with 3.7% in 2021.

Operating money circulate 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 share of gross sales, free money circulate in 2022 was 6.7%, in comparison with 12.6% in 2021.

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Ad hoc announcement pursuant to article 53 LR

Geneva, 25 January 2023

Financial place

Givaudan’s monetary place remained stable on the finish of the 12 months. 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 12 months 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 development in partnership with our prospects, via creating inspiring merchandise for happier, more healthy lives and having a optimistic affect on nature, folks and communities.

Ambitious targets are an integral a part of this technique, with the Company aiming to attain natural gross sales development of 4-5% on a like-for-like1 foundation and free money flow4 of a minimum of 12%, each measured as a median over the five-year interval technique cycle. In addition, we intention to ship on key non-financial targets round sustainability, range and security, linked to Givaudan’s objective.

Our daring and impressive long-term objective objectives are outlined in 4 domains: creations, nature, folks and communities. Our ambitions embrace doubling our enterprise via creations that contribute to happier, more healthy lives by 2030, turning into local weather optimistic earlier than 2050, turning into a number one employer for inclusion earlier than 2025 and sourcing all supplies and companies in a approach that protects the setting and other people by 2030.

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Ad hoc announcement pursuant to article 53 LR

Geneva, 25 January 2023

Further data

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 shall be elected for a time period of workplace ending on the Annual General Meeting.

The 2022 Full Year Report will be downloaded on www.givaudan.com: 2022 Integrated Annual Report, 2022 Governance, Compensation and Financial Report.

Further data and reconciliations of the Group’s Alternative Performance Measures will be discovered within the Appendix of the 2022 Financial Report.

A convention name shall be broadcast on www.givaudan.com on Wednesday 25 January 2023 at 15:00 CET.

Upcoming Company Events

AGM – 23 March 2023

First quarter gross sales and annual investor convention – 13 April 2023

Half 12 months outcomes – 20 July 2023

Half 12 months convention – 30 August 2023

Nine month gross sales – 12 October 2023

Investor day – 19 October 2023

Full 12 months outcomes – 25 January 2024

Contact

Pierre Bénaich, Head of Investor and Media Relations

T +41 22 780 9053

[email protected]

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