Givaudan reports stronger-than-expected sales in first quarter

(Sharecast News) - Shares in Givaudan were in the green on Tuesday after the group reported stronger-than-expected first-quarter sales growth, driven by robust demand for fragrances and consumer products despite ongoing weakness in its food ingredients business and currency headwinds. The Swiss manufacturer posted like-for-like sales growth of 2.8% for the three months to March, ahead of consensus forecasts of around 2% to 2.2%, with analysts noting that the increase was driven largely by volumes, signalling resilient underlying demand.

However, reported sales declined 5.2% to CHF 1.88bn (£1.78bn), reflecting a 9.2% drag from the strengthening Swiss franc.

Performance was led by the fragrance and beauty division, where like-for-like sales rose 5.9%, comfortably beating expectations.

Growth was supported by strong demand across fine fragrances and consumer products such as personal and home care, reinforcing a broader trend of resilient spending on premium beauty and household items.

Chief executive Christian Stammkoetter said the group had made a "solid start" to 2026, adding that its diversified business model continued to support resilience amid geopolitical uncertainty and uneven end-market conditions.

In contrast, the Taste & Wellbeing division, which supplies flavours for food and beverages, saw like-for-like sales fall 0.4%, missing expectations for modest growth.

The decline was most pronounced in South Asia, the Middle East and Africa, where sales dropped 7.1%, highlighting continued regional and category-specific weakness, particularly in beverages and savoury products.

Looking ahead, Givaudan said it was implementing price increases in 2026 to offset rising input, freight and logistics costs, with analysts expecting pricing to become a more important driver of growth in the coming quarters.

The company reiterated its medium-term targets, including average like-for-like sales growth of 4% to 6% and free cash flow conversion above 12%.

At 1216 CEST (1116 BST), shares in Givaudan were up 4.33% in Zurich at CHF 2,915.

Reporting by Josh White for Sharecast.com.