Givaudan (GIVN) Investor Presentation summary

Business overview and strategy

• Operates in Fragrance & Beauty and Taste & Wellbeing, providing compounds, ingredients, and integrated solutions for diverse consumer products including food, beverages, personal care, and home care.

• Business model centers on co-creation with customers, high entry barriers, research-driven innovation, and strong intellectual property protection.

• Portfolio is naturally hedged across products, geographies, and customer segments, with 54% of sales in mature markets and 46% in high-growth markets as of end 2023.

• 2025 strategy focuses on growth with purpose, expanding the portfolio, extending customer reach, and driving excellence, innovation, and simplicity.

• Committed to ESG leadership, with purpose-linked targets for climate, diversity, and community impact.

Financial performance

• 2023 sales reached CHF 6.9 billion, up 4.1% like-for-like, with record free cash flow of CHF 920 million (13.3% of sales).

• EBITDA for 2023 was CHF 1,473 million, with a margin of 21.3% (comparable margin 22.4%), and a proposed dividend of CHF 68 per share, marking the 23rd consecutive increase.

• Fragrance & Beauty segment grew 7.6% like-for-like in 2023, while Taste & Wellbeing grew 1.1%.

• H1 2024 sales were CHF 3,737 million, up 12.5% like-for-like, with comparable EBITDA margin rising to 24.8% and net income up 30.9% to CHF 588 million.

• Net debt to EBITDA ratio improved to 2.9 as of June 2024, with a weighted average effective interest rate of 1.96%.

Innovation and sustainability

• Invested CHF 519 million in R&D in 2023 (7.5% of sales), with over 5,000 active patents and 64 creation/application centers.

• Launched PlanetCaps, the world’s first biodegradable fragrance encapsulation technology, supporting regulatory compliance and sustainability.

• Targets include halving operational carbon emissions by 2030, achieving climate-positive operations by 2040, and climate-positive supply chain by 2050.

• Sourcing4Good program ensures responsible sourcing, with 54% of raw materials renewable and a goal of 100% responsible sourcing by 2030.

• Recognized for ESG leadership: AAA MSCI ESG rating since 2017, EcoVadis Gold, and top 4% ranking globally.