Givaudan (GIVN) H2 2024 earnings summary

Executive summary

• Achieved record financial performance in 2024, with sales of CHF 7.4 billion, up 12.3% like-for-like and 7.2% in Swiss francs year-over-year, and strong growth across all markets and segments.

• High-growth markets expanded 19.5% like-for-like, while mature markets grew 6.4% like-for-like.

• Net income rose 22.1% to CHF 1,090 million, with a net profit margin of 14.7%.

• Free cash flow hit a record CHF 1,158 million, up 25.9% from 2023 and representing 15.6% of sales.

• Proposed dividend of CHF 70.00 per share, a 2.9% increase and the 24th consecutive annual increase.

Financial highlights

• EBITDA increased 19.8% to CHF 1,765 million; EBITDA margin improved to 23.8% (reported) and 24.5% (comparable).

• Gross margin improved to 44.1% from 41.2% in 2023; gross profit rose 14.9% to CHF 3,271 million.

• Basic EPS increased 22.1% to CHF 118.17.

• Net debt to EBITDA improved to 2.3 from 2.9 at year-end 2023.

• Operating income increased 24.9% to CHF 1,394 million; operating margin at 18.8%.

Outlook and guidance

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

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

• Expecting approximately 4% increase in input costs in 2025, especially in naturals; non-recurring costs of CHF 30 million expected.

• Continued focus on sustainability, diversity, and responsible sourcing.

• 2025 strategy commitments fully on track; confident in portfolio and market position.