Group operating income increased to SFr245m from SFr238m in the same period last year. The operating margin on a comparable basis increased to 14.1% from 13.0%, mainly as a result of lower amortisation of intangible assets, as well as integration savings and other cost containment measures. Net income increased to SFr95, resulting in a margin of 4.8%, and the Ebitda margin was 21.2%.
Flavours Division sales grew by 0.9% in local currencies in the second quarter of 2009, compared to a decline of 2.1% in the first quarter of this year. In June, Givaudan successfully completed its SFr420m rights issue, with 99.7% of rights being exercised.
Integration activities continued on track, with further progress made in aligning the combined supply chains of the former Quest International and Givaudan.
In a challenging environment, Givaudan continues to focus on its growth initiatives to increase its share in developing countries and key market segments. Flavour Division sales in Asia Pacific increased at a single-digit rate supported by double-digit growth in developing markets. Sales in Latin America increased at a double-digit rate, and Brazil, Argentina and Mexico continued to post strong growth. Sales in the mature markets of Europe and North America also showed encouraging signs of recovery towards the end of the reporting period.
Gilles Andrier, CEO of Givaudan, said: “Givaudan is on track to achieve SFr170m and SFr200m of sustainable synergies at the end of 2009 and 2010 respectively. For the full-year 2009, Givaudan is confident to outgrow the underlying market, based on a solid briefs pipeline and new wins.”
Source: Razor PR
© FoodBev Media Ltd 2019