Givaudan Surpasses Expectations with Strong Q4 Sales and Full-Year Profit

Shares of Givaudan, the Swiss chemicals company, saw an impressive increase after reporting its fourth-quarter sales and full-year profit figures, surpassing analysts' expectations.

Q4 Sales and Full-Year Profit Figures

At 0825 GMT on Thursday, Givaudan's shares traded 4.5% higher at CHF3,467, marking a 22% gain over the last three months.

The supplier of ingredients to the food and cosmetics industry reported fourth-quarter sales of 1.65 billion Swiss francs ($1.91 billion). Although this was a 0.5% decrease compared to the previous year, it showed a notable 7.9% growth on a like-for-like basis.

Analysts had projected Givaudan's quarterly sales to be at CHF1.64 billion, with a like-for-like growth estimate of 5.9%, according to consensus estimates provided by the company.

For the entire year, Givaudan reported a rise in net profit to CHF893 million from CHF856 million in 2022. This increase in profit came despite a decline in sales to CHF6.915 billion from CHF7.12 billion.

Analysts had forecasted a full-year net profit of CHF842 million on sales of CHF6.92 billion, based on the consensus provided by the company.

Positive Prospects Amidst Challenging Times

Givaudan's robust results demonstrate its strength amidst ongoing challenges in the industry. The company was able to benefit from customers' efforts to replenish inventories during this period, according to Baader Helvea analysts Andreas von Arx and Konstantin Wiechert.

These findings indicate a positive outlook for Givaudan and reinforce its commitment to regaining profitability.