July 23 (Reuters) – Swiss fragrance and flavour maker Givaudan (GIVN.S), reported second-quarter organic sales that beat market estimates on Thursday, driven by stronger-than-expected growth in its fragrance division, while its flavours arm recovered from a first-quarter decline.
Group organic sales grew 4.3%, ahead of a company-compiled consensus of 3.7%, marking the first acceleration in Givaudan’s organic sales growth since late 2024, when it peaked as customers restocked ingredients, having worked through their pandemic-time stockpiles.
Growth had since slowed, as clients finished rebuilding stocks and demand for packaged food weakened.
The fragrance division, which creates scents for prestige perfumes and everyday household goods, posted organic growth of 7.1% in the quarter, topping a 5.8% consensus, as strong demand for consumer-goods scents offset a slowdown in fine fragrances.
Its flavours division, which makes flavourings for food and drink, grew 1.5%, roughly in line with expectations, as a rebound in South Asia, Middle East and Africa was tempered by continued weakness in Latin America.
First-half net income fell nearly 20% from a year ago to 475 million Swiss francs ($584 million) and missed the 554 million franc consensus, hit by one-off charges including costs related to the competition authorities’ investigation into the fragrance industry, Givaudan said.
Stripping out the charges, adjusted core earnings slipped by 50 million to 923 million francs, in line with market expectations.
Givaudan said it expected input costs to rise by a low single-digit percentage in the second half of 2026 and was raising prices to offset them in full.
It also said that partially recovered U.S. tariffs would be repaid to customers during the second half, which will weigh on organic sales growth.
($1 = 0.8130 Swiss francs)
Reporting by Rafal Nowak in Gdansk; Editing by Milla Nissi-Prussak.
