Givaudan has revealed an ambitious strategy for responsible growth during the next five years, which it will achieve by decoupling growth and environmental impact through new eco-efficiency targets.
The flavours and fragrances producer wants to achieve average organic sales growth of between 4% and 5%, and free cash flow of between 12% and 17% of sales. It will concentrate more of its efforts on high-growth markets such as China and India, and capitalise on opportunities that present themselves as a result of shifting consumer preferences – even if it means diversifying from its core flavour and fragrance platform.
But Givaudan’s growth will be measured against a number of new eco-efficiency targets in line with the progress being made against an earlier set of objectives for 2020, which it mapped out five years ago and expects to achieve “ahead of schedule”. The Swiss-based company will implement initiatives to reduces its annual carbon dioxide (CO2) footprint by at least 4%, reduce its waste production and energy consumption per tonne of product by around the same amount each year, and reiterate its commitment to water reduction by using 15% less per tonne of product in 2020 than in 2010.
Additionally, it will target “incremental value through acquisitions in the areas of integrated solutions for food and beverages, as well as health and wellbeing”.
Givaudan CFO Matthias Währen said: “We will drive both a deep customer focus and further efficiency improvements throughout the organisation to strengthen our value proposition while controlling our costs. The company remains committed to returning a significant portion of its free cash flow to shareholders and maintaining our current dividend practice over the next five years.”
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