Givaudan AG (GVDBF.PK), a Swiss maker of flavors, fragrances, and cosmetic ingredients, reported Tuesday a 5.2 percent drop in its first-quarter sales with weak performance in both segments, mainly Taste & Wellbeing. However, like-for-like sales grew 2.8 percent, against strong prior year comparable growth of 7.4 percent.
Regarding the mid and long term ambitions, its 2030 strategy, the firm projects 4 percent to 6 percent average like-for-like or LFL sales growth and over 12 percent average free cash flow over the five-year period.
In the first three months of 2026, Givaudan recorded sales of 1.875 billion Swiss francs.
Fragrance & Beauty sales were 1.004 billion francs, down 0.6 percent from last year on a reported basis, but up 5.9 percent on LFL basis, compared to prior year LFL growth of 9.8 percent.
On a business unit basis, Fine Fragrance sales increased 9.6 percent and Consumer Products sales increased 7.8 percent, both on LFL basis. Meanwhile, sales of Fragrance Ingredients and Active Beauty decreased 5.9 percent LFL, against comparable growth of 7.7 percent LFL in the prior year.
Further, Taste & Wellbeing sales were 871 million francs, down 10 percent on a reported basis and 0.4 percent on LFL basis.
LFL sales in high growth markets increased 4.0 percent, compared to prior year's growth of 12.8 percent, while sales in mature markets increased 1.7 percent versus 2.6 percent increase last year. The company noted that all customer groups and most regions contributed to the sales growth.
On a regional basis, Asia Pacific sales increased 4.1 percent LFL, compared to a growth of 6.1 percent last year. North America sales slightly increased by 0.1 percent LFL, while Europe sales decreased 0.4 percent, compared to prior year's growth of 7.1 percent.
South Asia, Africa and the Middle East sales decreased 7.1 percent LFL against prior year comparable growth of 10.4 percent.
In Latin America, sales decreased 3.1 percent LFL.
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