Fragrance giant Givaudan has reported an improvement in outlook based on full year results for 2007.
Increased sales were recorded but depressed profit margins, inherited by the takeover of Quest for $2.44bn in 2007, took their toll with net profit slashed to CHF94m from CHF412m.
Total sales increased to CHF4,132m from CHF 2,909m in the previous year. This resulted in a growth of 42.2% in local currencies and 42.0% in Swiss francs.
The Fragrance division recorded sales of CHF1,899m, which represents a growth of 54.9% in local currencies and 55.3% in Swiss francs. Meanwhile the Flavour division reported sales of CHF2,233m, representing a growth of 33.0% in local currencies and 32.4% in Swiss francs.
Givaudan attributed the low profitability to CHF328m of integration costs and amortisation of acquisition related intangible assets as well as a one-off, non-cash tax adjustment of CHF28m.
There will be a conference call broadcast on Givaudan’s internet site (http://www.givaudan.com) on 19 February 2008 at 15.0CET.