Givaudan tops organic sales growth estimates driven by fragrance unit (updated)
14/04/2026 05:27
Rewrites headline, adds share move in paragraph 2, analysts volume attribution in paragraph 3, analyst comments in paragraph 6, 9, specifies South Asia, Middle East and Africa as the region with sharpest sales decline in paragraph 7
By Rafal Wojciech Nowak
April 14 (Reuters) - Swiss fragrance and flavour maker Givaudan GIVN.S reported higher than expected first-quarter like-for-like sales growth on Tuesday, as robust demand for perfumes and consumer products offset a decline in its food ingredients business.
At 0728 GMT, shares in the company were up 5.6%, hitting their highest level in over a month.
Givaudan's quarterly sales rose 2.8% excluding the impact of currency changes, acquisitions and disposals. That was ahead of a company-compiled consensus forecast of 1.9%. The growth was driven almost entirely by volumes, analysts said.
A slower start to 2026, with group organic growth decelerating from 7.4% a year ago, was cushioned by a strong performance in its fragrance & beauty unit where like-for-like sales grew 5.9%, beating a consensus estimate of 4.1%.
Growth in the division, which creates scents for perfumes and household products, was driven by strong performances in its perfumery and personal and home care businesses.
J.P. Morgan analyst Celine Pannuti said the results "signal a good start to the year for fragrances and beauty", adding they could offer a positive read-across for beauty players L'Oréal OREP.PA and Puig PUIGb.MC.
But Givaudan's taste & wellbeing unit, which supplies flavours for food and drinks, saw its organic sales decline 0.4%, with the sharpest drop in South Asia, the Middle East and Africa, where sales fell 7.1%.
On a reported basis, sales fell 5.2% to 1.88 billion Swiss francs ($2.40 billion), as a 9.2% currency headwind from the strengthening franc weighed on its results.
The company said it was implementing price increases to offset rising input costs in 2026, which Pannuti said pointed to "a progressive price acceleration in the coming quarters."
($1 = 0.7829 Swiss francs)
Givaudan's flavours business loses momentum as fragrances hold up https://www.reuters.com/graphics/GIVAUDAN-RESULTS/byvrnxyzmve/chart.png
(Editing by Milla Nissi-Prussak and Matt Scuffham)
((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))