In This Article:
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Revenue: CHF7.4 billion, a 12.3% increase on a like-for-like basis and 7.2% in Swiss francs.
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EBITDA: CHF1,765 million, an increase of nearly 20% with a margin of 24.5% compared to 22.4% in 2023.
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Net Income: CHF1,090 million, a 22% increase over 2023, with a net profit margin of 14.7%.
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Free Cash Flow: CHF1,158 million, representing 15.6% of sales.
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Dividend Proposal: CHF70 per share, marking the 24th consecutive increase.
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Fragrance and Beauty Sales: CHF3,660 million, up 14.1% like-for-like and 10.5% in Swiss francs.
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Taste and Wellbeing Sales: CHF3,752 million, up 10.7% like-for-like and 4.1% in Swiss francs.
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Gross Margin: Increased to 44.1% from 41.2% in 2023.
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Net Debt to EBITDA Ratio: Improved to 2.3 times from 2.9 times in December 2023.
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R&D Investment: Almost 8% of sales.
Release Date: January 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Givaudan SA (GVDBF) reported a strong top-line growth with sales amounting to CHF7.4 billion, marking a 12.3% increase on a like-for-like basis.
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The company achieved a record free cash flow of CHF1,158 million, representing 15.6% of sales.
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Net income increased by 22% over 2023, reaching CHF1,090 million, with a net profit margin of 14.7%.
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Fragrance and beauty division sales grew by 14.1% on a like-for-like basis, driven by a significant 18.4% increase in fine fragrances.
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Givaudan SA (GVDBF) has made substantial progress in its non-financial targets, including a 48% reduction in Scope 1 and 2 emissions compared to the 2015 baseline.
Negative Points
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The effective tax rate increased to 17% in 2024 compared to 10% in 2023, due to one-time effects of tax changes in Switzerland.
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Taste and wellbeing division's EBITDA margin is still below the target range of 22% to 24%, despite improvements.
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The company faces a firmer outlook for input costs in 2025, with an expected increase of around 4% at the group level.
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There was a tragic accident at the Kentucky facility, resulting in a CHF10 million financial impact in 2024.
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The mature markets in Asia Pacific, including Japan and Korea, showed low single-digit growth, indicating slower performance in these regions.
Q & A Highlights
Q: Can you explain the drivers behind the strong growth in consumer products despite a slower Q4? A: The perceived slowdown in Q4 is due to comparables. Overall, growth is driven by increased fragrance dosage and innovation, with no significant inventory build-up. We also gained market share, particularly with local and regional (L&R) clients, which make up 57% of our sales. (Gilles Andrier, CEO)