Fragrance and flavour maker Givaudan said it was confident of delivering sales growth of between four per cent and five per cent this year, within its mid-term target range.
The company, which makes fragrances for products including laundry powders and high-end perfumes, said it will not have any new price increases, but will continue to see “good demand” in high-growth markets.
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“Confidence in the U.S. is good and a lot of the questions we had in Europe in 2019, like Brexit, are behind us,” Chief Financial Officer Tom Hallam said.
Givaudan, which develops tastes and scents for customers in the consumer and luxury goods industry, has benefitted from its focus on natural ingredients and health and wellness products. Flavourings for plant-based meat substitutes are also a growth area.
However, the company’s business with its global customers has slowed and more than half of its sales came from local and regional customers.
Sales in fragrance rose 7.3 per cent, boosted by strong demand for fragrances for consumer products in the Americas, while sales in the flavours unit were up 4.5 per cent, due to a weak performance in North America.
Shares in Givaudan, which hit a record high on Wednesday were down 2.1 per cent early this morning.
The company’s net profit rose 6.0 per cent to 702 million Swiss francs ($726m, £554m, £611m ) in 2019, while organic growth, excluding acquisitions rose to 5.8 per cent from 5.6 per cent a year ago.
The company has spent about 3.6 billion francs on acquisitions.