(Reuters) -Swiss fragrance and flavour maker Givaudan on Thursday reported quarterly sales slightly above market forecasts as organic growth held strong outside of North America, and said it was highly likely to exceed its five-year growth target until end-2025.
Revenue rose 7.4% on a like-for-like, or organic, basis to 1.98 billion Swiss francs ($2.32 billion) in the first quarter, beating analysts’ average forecast of 6% organic growth to 1.93 billion francs in a poll compiled by the company.
Among its markets, Latin America recorded the biggest rise in organic sales, while previously muted growth in North America halted, resulting in a 0.5% organic decrease.
“With ongoing uncertainty in relation to global trade tariffs, we remain focused on our strategy and on delivering innovative solutions to help drive the growth of our customers,” CEO Gilles Andrier said in a statement.
Givaudan, whose customers include cosmetics firms and beverage makers, said it would increase its prices to compensate for higher input costs in 2025, partially including tariffs.
The company saw its profitability improve last year on the back of robust sales growth especially in its fragrance business, despite a challenging economic environment.
January-March sales in the Taste & Wellbeing business, which makes up more than a half of Givaudan’s revenue, increased by 5% like-for-like from a year earlier. Sales in the Fragrance & Beauty business were up 9.8% on the same basis.
Givaudan reiterated that its average organic sales growth was set to exceed its target range of 4% to 5% in the years between 2021 and 2025. The average growth stood at 7.2% at the end of 2024.
($1 = 0.8521 Swiss francs)
(Reporting by Jagoda Darlak and Rafal Wojciech Nowak in Gdansk; editing by Milla Nissi)
