GENEVA—Givaudan released its 2Q09 financial results that showed improved momentum and strong cash flow during a difficult economic environment. According to its 2Q09 report, it remains difficult to reliably forecast the market growth in a continuing weak economy; however, its Flavor Division is expected to remain resilient.
Companywide sales for the first six months of the year totaled CHF 1,996 million, a decrease of 0.9 percent in local currencies and 4.7 percent in Swiss francs. Excluding the impact of the divested business in the Flavors division, sales to June 2009 decreased by 0.6 percent in local currencies versus the same period in 2008. 2Q09 sales posted a slight growth of 0.9 percent in local currencies compared to a decline of 2.1 percent in 1Q09. Operating income margin increased by 1.1 percentage points, mainly as a result of the lower amortization of intangible assets, while EBITDA declined by 1.3 percentage points, driven by continued pressure on the gross margin.
The Flavor Division recorded sales of CHF 1,097 million, an increase of 0.2 percent in local currencies and a decrease of 3.2 percent in Swiss francs. Excluding the impact of the divested St Louis business, sales in the first half year 2009 increased by 0.8 percent in local currencies versus the same period in 2008.
Sources: Givaudan: Half Year Results 2009: Improved momentum and strong cash flow
|