Latest news with #GivaudanSA
Yahoo
23-07-2025
- Business
- Yahoo
Givaudan SA (GVDBF) (Q2 2025) Earnings Call Highlights: Strong Sales Growth and Strategic ...
Sales: CHF3.864 billion, an increase of 6.3% on a like-for-like basis and 3.4% in Swiss francs. Comparable EBITDA: CHF973 million, with a margin of 25.2%, up from 24.8% in 2024. Net Income: CHF592 million, compared to CHF588 million last year. Free Cash Flow: Slightly negative due to timing effects of capital expenditures and tax payments. Fragrance & Beauty Sales: CHF1.955 billion, up 8.6% on a like-for-like basis. Taste & Wellbeing Sales: CHF1.909 billion, up 4.1% on a like-for-like basis. Gross Margin: Stable at 44% compared to 44.1% in the first half of 2024. Net Debt to EBITDA: 2.5 times at the end of June 2025, compared to 2.9 times in June 2024. Basic Earnings Per Share: CHF64.18, compared to CHF63.76 in 2024. Net Investments: CHF169 million, representing 4.4% of sales. Warning! GuruFocus has detected 2 Warning Signs with NSE:MAHLOG. Release Date: July 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Givaudan SA (GVDBF) reported a strong financial performance with sales of CHF3.864 billion, marking a 6.3% increase on a like-for-like basis. The company achieved a record comparable EBITDA margin of 25.2%, up from 24.8% in the previous year. Fragrance & Beauty sales increased by 8.6% on a like-for-like basis, with Fine Fragrances showing an impressive 18% growth. High-growth markets outpaced mature markets, with significant contributions from India, Brazil, the Middle East, and China. Givaudan SA (GVDBF) is on track to exceed its five-year sales growth target and achieve a free cash flow margin target greater than 12% by the end of the strategic cycle. Negative Points The free cash flow for the first half was slightly negative due to timing effects of capital expenditures and tax payments. Fragrance Ingredients experienced a softer performance, reflecting an overall softer demand from the market. North America showed volatility, with only a 1.7% increase in like-for-like sales for the first half. The net debt-to-EBITDA ratio increased to 2.5 times at the end of June 2025, compared to 2.3 times in December 2024. The company anticipates nonrecurring costs of CHF30 million associated with acquisition and restructuring efforts in 2025. Q & A Highlights Q: Can you explain the deceleration in growth and the impact of pricing and volume performance, particularly in the US and Asia Pacific? A: Pricing is not a growth strategy for Givaudan; it's a response to input costs. In the first half, pricing, including FX and tariffs, was slightly below 1%. The US showed improvement with a 4% growth in Q2, driven by Taste & Wellbeing. Asia Pacific faced high comparables, particularly in Southeast Asia, but we expect a positive trend in the second half. Gilles Andrier, CEO Q: Can you provide insights into the growth drivers for Fine Fragrances and the impact of growth investments on EBITDA margin? A: Fine Fragrances growth is driven by market outperformance and new business wins, with no phasing effects. Growth investments are mainly operational, such as increasing resources to support client relationships and future growth. The EBITDA margin contraction is minimal, reflecting these strategic investments. Gilles Andrier, CEO Q: What is the status of the antitrust investigation and the US accident's financial impact? A: The antitrust investigation is ongoing with no updates on timing or findings. Regarding the US accident, we incurred CHF9 million in costs in H1 2025, with a similar amount expected in H2. We anticipate full insurance coverage for remaining costs beyond 2025. Gilles Andrier, CEO & Stewart Harris, CFO Q: How is Givaudan positioned in the natural colors market, and what is the outlook for Fragrance Ingredients? A: Givaudan is well-positioned with a full spectrum of natural colors, thanks to Naturex and recent innovations. In Fragrance Ingredients, the slower performance is not indicative of end-market demand but reflects sales to competitors. We focus on maintaining a strategic balance in production to protect IP and manage costs. Gilles Andrier, CEO Q: Can you elaborate on the cash flow performance and strategic approach to Fragrance Ingredients? A: The negative free cash flow is due to higher investments and tax payments, with confidence in achieving our 12% target over the strategic cycle. For Fragrance Ingredients, we focus on innovation and maintaining a competitive edge, balancing internal production with market dynamics to manage volatility. Stewart Harris, CFO & Gilles Andrier, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
27-06-2025
- Business
- Business Insider
New Buy Rating for Givaudan SA (GVDNY), the Basic Materials Giant
In a report released yesterday, from Berenberg Bank maintained a Buy rating on Givaudan SA (GVDNY – Research Report), with a price target of $116.30. The company's shares closed yesterday at $97.27. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Currently, the analyst consensus on Givaudan SA is a Moderate Buy with an average price target of $111.10. Based on Givaudan SA's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $3.68 billion and a net profit of $502 million. In comparison, last year the company earned a revenue of $3.38 billion and had a net profit of $444 million
Business Insider
20-06-2025
- Business
- Business Insider
Givaudan SA (GIVN) Gets a Buy from Berenberg Bank
In a report released yesterday, Sam Darbyshire from Berenberg Bank maintained a Buy rating on Givaudan SA (GIVN – Research Report), with a price target of CHF4,750.00. The company's shares closed yesterday at CHF4,035.00. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Darbyshire covers the Consumer Defensive sector, focusing on stocks such as Mondelez International, Givaudan SA, and Barry Callebaut AG. According to TipRanks, Darbyshire has an average return of -1.2% and a 48.08% success rate on recommended stocks. In addition to Berenberg Bank, Givaudan SA also received a Buy from J.P. Morgan's Celine Pannuti CFA in a report issued on June 18. However, yesterday, Morgan Stanley maintained a Sell rating on Givaudan SA (Six Swiss: GIVN).
Business Insider
20-06-2025
- Business
- Business Insider
Givaudan SA (GIVN) Gets a Sell from Morgan Stanley
In a report released today, Lisa De Neve from Morgan Stanley maintained a Sell rating on Givaudan SA (GIVN – Research Report), with a price target of CHF3,650.00. The company's shares closed today at CHF4,035.00. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, De Neve is a 3-star analyst with an average return of 3.3% and a 46.00% success rate. De Neve covers the Basic Materials sector, focusing on stocks such as International Flavors & Fragrances, Icl, and Yara International. Currently, the analyst consensus on Givaudan SA is a Hold with an average price target of CHF4,194.23, a 3.95% upside from current levels. In a report released today, Barclays also maintained a Sell rating on the stock with a CHF3,800.00 price target. Based on Givaudan SA's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of CHF3.68 billion and a net profit of CHF502 million. In comparison, last year the company earned a revenue of CHF3.38 billion and had a net profit of CHF444 million
Yahoo
17-02-2025
- Business
- Yahoo
Givaudan's (VTX:GIVN) Dividend Will Be Increased To CHF70.00
The board of Givaudan SA (VTX:GIVN) has announced that it will be paying its dividend of CHF70.00 on the 26th of March, an increased payment from last year's comparable dividend. Even though the dividend went up, the yield is still quite low at only 1.7%. Check out our latest analysis for Givaudan If it is predictable over a long period, even low dividend yields can be attractive. The last dividend was quite easily covered by Givaudan's earnings. This indicates that quite a large proportion of earnings is being invested back into the business. Over the next year, EPS is forecast to expand by 22.8%. If the dividend continues on this path, the payout ratio could be 50% by next year, which we think can be pretty sustainable going forward. The company has an extended history of paying stable dividends. Since 2015, the dividend has gone from CHF50.00 total annually to CHF70.00. This means that it has been growing its distributions at 3.4% per annum over that time. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Givaudan has seen EPS rising for the last five years, at 9.2% per annum. The company is paying a reasonable amount of earnings to shareholders, and is growing earnings at a decent rate so we think it could be a decent dividend stock. Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity. It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for Givaudan that you should be aware of before investing. Is Givaudan not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
