Givaudan (GIVN) H1 2025 earnings summary

Executive summary

• Achieved strong financial performance in H1 2025, with sales of CHF 3,864 million, up 6.3% like-for-like and 3.4% in Swiss francs, despite challenging macroeconomic and geopolitical conditions.

• Net income was CHF 592 million, with a net profit margin of 15.3%.

• Strong growth across all business segments and geographies, with high-growth markets up 10% like-for-like and Fine Fragrance segment up 18%.

• Strategic expansion included the acquisition of a majority stake in Vollmens Fragrances to strengthen LATAM presence.

• Price increases were implemented to offset higher input costs and currency headwinds.

Financial highlights

• Comparable EBITDA was CHF 973 million, with a record margin of 25.2% (up from 24.8%).

• Reported EBITDA was CHF 945 million (24.5% margin), up from CHF 906 million (24.2%).

• Free cash flow was CHF -16 million (-0.4% of sales), mainly due to timing of investments and tax payments.

• Net debt to EBITDA improved to 2.5x from 2.9x in June 2024; net debt at CHF 4,490 million.

• Basic EPS was CHF 64.18, up from CHF 63.76 in H1 2024.

Outlook and guidance

• On track to exceed the upper end of the five-year average like-for-like sales growth target (4-5%) for 2021-2025.

• Confident in achieving average free cash flow margin >12% for the strategic cycle ending 2025.

• 2030 strategy to be announced at the August 2025 investor conference.

• Input cost increases for 2025 expected at around 3%; price increases to be implemented to offset costs.

• Anticipates CHF 30 million in non-recurring costs for 2025, including up to CHF 20 million related to the Louisville accident.