Givaudan (GIVN) H1 2024 earnings summary

Executive summary

• Sales reached CHF 3,737 million, up 12.5% like-for-like and 5.7% in Swiss francs year-over-year, with robust growth across all segments, geographies, and customer groups.

• Net income rose 30.9% to CHF 588 million, with a net profit margin of 15.7% compared to 12.7% in the prior year.

• Free cash flow increased to CHF 197 million, representing 5.3% of sales, up from 2.9% in 2023.

• Stewart Harris appointed as CFO effective 1 August 2024, succeeding Tom Hallam.

• Continued commitment to sustainability, ESG leadership, and purpose-driven growth, with multiple external recognitions for climate action and water stewardship.

Financial highlights

• Comparable EBITDA was CHF 929 million, margin improved to 24.8% from 22.7% year-over-year; reported EBITDA CHF 906 million, margin 24.2%.

• Gross profit rose 13.7% to CHF 1,646 million, with gross margin up to 44.1% from 41.0%.

• Operating income increased 24.4% to CHF 729 million, with margin at 19.5% versus 16.6% last year.

• Basic EPS was CHF 63.76, up from CHF 48.69.

• Net debt at CHF 4,718 million, net debt/EBITDA ratio improved to 2.9 from 3.7.

Outlook and guidance

• Strategy targets organic sales growth of 4-5% like-for-like and free cash flow of at least 12% as an average over the five-year cycle.

• Long-term ambitions include doubling business by 2030 and becoming climate positive before 2050.

• 2024 input cost increases expected to be minor, with some pressure in Naturals.

• Ongoing performance improvement program, with CHF 50 million in associated costs for 2024.

• Margin improvement in Taste & Wellbeing expected over next 18 months, aiming for 22%-24% range.