Flavours group Givaudan reports major annual sales growth, as it enhances eco performance

Global flavours and fragrances business, Givaudan has reported a key upturn in sales, increasing 12.3% to CHF7,412 million, against its performance in 2023, reports Neill Barston.
The company’s latest results come as it also enhances its environmental performance, with its goals aligning with the Science Based Targets Initiative SBTi’s Net-Zero Standard for markedly reducing emissions over the coming years. It has also set out strategies that it believes will help double its present business size within the next five years in a sustainable manner.
Significantly, sales in Taste & Wellbeing were reported at CHF,752 million for the past year, an increase of 10.7% on a like-for-like basis and an increase of 4.1% in Swiss francs, against a comparable growth of 1.1% LFL in 2023.
As the company stated, its net income stood at CHF1,090 million in 2024 compared to CHF 893 million in 2023, an increase of 22.1% in Swiss francs, resulting in a net profit margin of 14.7% versus 12.9% in 2023.
Moreover, as the business observed, it finished the year strongly and maintained its operations and global supply chain at a high level. The strong growth was achieved across product segments and geographies, with the high-growth markets growing at 19.5% on a LFL basis and the mature markets at 6.4%.
In terms of its regional performance, sales in Latin America increased by 27.3% LFL. In South Asia, Africa and the Middle East, sales increased by 20.9%. In Europe, sales increased by 5.9% against the previous year. Meanwhile, in Asia Pacific, sales increased by 8.8% LFL and in North America sales increased by 5.5% LFL. Within the product segments, there was strong double-digit growth in snacks, beverages and dairy, as well as good momentum in sweet goods and savoury.
Financing costs in 2024 were reported at CHF121 million versus CHF 120 million in 2023. Other financial income, net of expenses, was CHF 40 million in 2024 compared with CHF 7 million of other financial expenses, net of income in 2023. The increase in income was largely related to lower mark-to-market adjustments on marketable securities and a reduction in foreign exchange losses compared to the prior year.
Environmental performance
As the business has reported, it has made progress towards its ESG targets, which have set an official target to be climate positive before 2050, which has included a number of core actions.
Notably, the business reported that its core scope 1+2 emissions have been reduced by 48% compared with the 2015 baseline and reduced by 8% compared to 2023. Additionally, in 2024 Givaudan has already met its 2025 target of converting its entire electricity supply to fully renewable sources.
Furthermore, in accordance with new Swiss climate reporting regulations, Givaudan has included, for the first time in its integrated report, its Climate-related Financial Disclosure in alignment with the Task Force on Climate-related Financial Disclosures, which includes a comprehensive climate scenario analysis.
In another key development, the group also continues to make progress on its people related targets in diversity and inclusion, and in 2024 has 32% of senior leadership positions held by women. Finally, Givaudan is advancing towards its goal of sourcing all materials and services responsibly by 2030, achieving 85% of its naturals portfolio sourced responsibly, up from 76% in 2023.
For 2025, its strategy is ‘Committed to Growth, with Purpose’, setting out to deliver growth in partnership with its customers, through delivering new product innovation with a focus on healthier profiles that have a positive impact on nature, people and communities.
It has set out a target for sales growth of 4 to 5% on a like-for-like1 basis and free cash flow4 of at least 12%, both measured as an average over the five-year period strategy cycle. It has also set markers to deliver on non-financial targets around sustainability, diversity and safety.
With average like-for-like sales growth of 7.2% for the period 2021-2024, Givaudan is highly likely to exceed the upper end of its average five-year sales growth target of 4-5% on a like-for-like basis for the period 2021-2025.
Significantly, as well as targeting a doubling of its business by 2030, it also aims to be climate positive before 2050, becoming a leading employer for inclusion before 2025 and sourcing all materials and services in a way that protects the environment and people by 2030.
Gilles Andrier, CEO of Givaudan, commented: “The validation of our net-zero targets represents a significant new milestone in our climate journey. The world is changing fast and the impacts of climate change are becoming more visible every day. Climate action has never mattered more and while we can be proud of the progress we’re making, we must be clear that there is a long road ahead. We’re committed to continuing to accelerate progress with our customers, our suppliers and our partners as we work together to deliver concretely on our ambitions.”