UPDATE 2-Givaudan sees good Q4 after 9-month sales rise

Published 10/08/2010, 07:11 AM
Updated 10/08/2010, 07:16 AM

* 9-month sales 3.28 Swiss francs vs 3.27 bln forecast

* Expects good Q4 performance, confirms FY goals

* Shares ease 0.3 percent, broadly in line with midcap index

(adds analysts comments, shares)

By Catherine Bosley

ZURICH, Oct 8 (Reuters) - Frangrance and flavour-maker Givaudan struck an upbeat note for the rest of the year after its sales rose in the first nine months thanks to strong demand in both emerging and developed markets.

The company, which makes artificial flavourings for food and the scents used in the perfumes of such fashion houses as Dior and Prada, said it was confident of achieving its full-year targets.

"The message is that the consumer is not quite as bad as you'd expect," said Kepler analyst Jon Cox, adding that the figures had been a positive surprise for him.

Shares in Givaudan were down 0.3 percent at 1106 GMT, broadly in line with the Swiss midcap index.

Givaudan's outlook is similar to those of rivals Symrise and International Flavors & Fragrances, which also have experienced a boost to business due to better consumer spending.

The traditional chemical industry overall is projecting a positive end to 2010 after a tough few years of restructuring to cope with competition from Asia.

Givaudan and its rivals have not been hit as hard because their products are more consumer focused and people are starting to spend more on higher end food and luxury items.

Givaudan is aiming for sales growth above 5 percent in local currencies and an EBTIDA-margin of 22.7 percent, which Cox said were somewhat conservative goals given trading thus far.

"They will be above that 5 percent level, probably closer to 8 or so percent," Kepler analyst Cox said.

Givaudan said nine-month sales rose 8.5 percent in Swiss franc terms to 3.28 billion francs, against 3.27 billion Swiss francs in a Reuters poll of analysts. (Editing by Karen Foster)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.