Company news

Ad hoc announcement pursuant to article 53 LR

Geneva, 28 January 2022

2021 Full Year Results

Strong start to the 2025 strategic cycle

  • Sales of CHF 6.7 billion, up 7.1% on a like-for-like1 basis and 5.7% in Swiss francs
  • Strong sales across all markets and with all customer groups
  • All 2025 strategic focus areas on track and contributing to the results
  • EBITDA2 of CHF 1,482 million, an increase of 6.0% over 2020
  • EBITDA margin of 22.2%, versus 22.1% in 2020
  • Comparable EBITDA3 margin of 22.5% compared to 22.8% in 2020
  • Net income of CHF 821 million, an increase of 10.5% over 2020
  • Free cash flow4 of 12.6% of sales or CHF 843 million
  • Proposed dividend of CHF 66.00 per share, up 3.1% year-on-year

Business Performance

Givaudan Group full year sales were CHF 6,684 million, an increase of 7.1% on a like-for-like basis and 5.7% in Swiss francs when compared to 2020.

Fragrance & Beauty sales were CHF 3,091 million, an increase of 6.6% on a like-for-like basis and 5.8% in Swiss francs.

Taste & Wellbeing sales were CHF 3,593 million, an increase of 7.6% on a like-for-like basis and 5.7% in Swiss francs.

As the COVID-19 pandemic continued to have an impact on a global level, Givaudan sustained good business momentum whilst maintaining its operations and global supply chain at a high level, despite ongoing challenges in certain parts of the supply chain. The strong sales growth was achieved across all product segments and geographies, with the mature markets growing at 6.3% and the high growth markets at 8.3% on a like-for-like basis. In Fragrance & Beauty the product segments most affected in the first phases of the COVID-19 pandemic, namely Fine Fragrances and to a lesser extent Active Beauty, delivered excellent double-digit growth in 2021, demonstrating strong consumer demand for these product categories. In Taste & Wellbeing, there was excellent sales growth in the beverage, savoury and snacks categories, as well as in the strategic focus areas of plant-based proteins, health and wellness and naturals. In addition, there was a progressive recovery in the foodservice segment, as restrictions in relation to out-of-home food and beverage consumption started to be eased in certain markets.

With higher input costs in 2022, the company is implementing price increases in collaboration with its customers to fully compensate for the increases in input costs.

Givaudan International SA, Chemin de la Parfumerie 5, 1214 Vernier, Switzerland

Phone: +41 22 780 91 11, Web: www.givaudan.com

1/11

Ad hoc announcement pursuant to article 53 LR

Geneva, 28 January 2022

"I am very pleased with the successful start that we have made into our 2025 strategic cycle, with all parts of our business and our strategic focus areas contributing to the strong financial results that we have achieved in 2021," said CEO Gilles Andrier. "With the continuing challenges of the COVID-19 pandemic during 2021, I am extremely grateful to all of the Givaudan employees around the world for their continued focus and commitment in supporting our customers throughout the difficult conditions we have faced over the last two years."

Gross Margin

The gross profit increased by 7.4% from CHF 2,659 million in 2020 to CHF 2,855 million in 2021. Due to the operating leverage related to the strong sales volume growth and continued cost discipline, the gross margin increased to 42.7% in 2021 compared to 42.1% in 2020.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)

The EBITDA2 increased by 6.0% to CHF 1,482 million in 2021 compared to CHF 1,397 million in 2020, whilst the EBITDA margin was 22.2% in 2021 compared to 22.1% in 2020. On a comparable basis3, the EBITDA margin was 22.5% in 2021 compared to 22.8% in 2020.

in millions of

2021

2020

Fragrance

Taste &

Fragrance

Taste &

Swiss francs

Group

& Beauty

Wellbeing

Group

& Beauty

Wellbeing

EBITDA as published

1,482

696

786

1,397

677

720

EBITDA as published in %

22.2

22.5

21.9

22.1

23.2

21.2

Givaudan Business Solutions (GBS) costsa

0

0

-6

-6

Acquisition and restructuring expensesb

-22

-2

-20

-39

-7

-32

Comparable EBITDA

1,504

698

806

1,442

690

752

Comparable EBITDA in %

22.5

22.6

22.4

22.8

23.6

22.1

  1. In 2020 the Group incurred costs of CHF 6 million in relation to the finalisation of the implementation of the Givaudan Business Solutions organisation. No further costs were incurred in 2021.
  2. Acquisition and restructuring expenses incurred of CHF 22 million (2020: CHF 39 million) are largely related to the acquisitions that the Group has undertaken and the ongoing optimisation of the manufacturing footprint.

Operating Income

The operating income was CHF 1,089 million compared to CHF 996 million, an increase of 9.3% versus 2020. The operating margin was 16.3% in 2021 compared to 15.8% in 2020.

2/11

Ad hoc announcement pursuant to article 53 LR

Geneva, 28 January 2022

Financial Performance

Financing costs in 2021 were CHF 94 million versus CHF 86 million in 2020, largely related to the increase in the net debt of the Group in connection with the acquisitions that the Group has made. Other financial expense, net of income, was CHF 30 million in 2021 compared with CHF 34 million in 2020.

The income tax expense as a percentage of income before taxes was 15%, compared to 15% in 2020.

Net Income

The net income was CHF 821 million in 2021 compared to CHF 743 million in 2020, an increase of 10.5%, resulting in a net profit margin of 12.3% versus 11.8% in 2020. Basic earnings per share were CHF 89.03 compared to CHF 80.59 for the same period in 2020.

Cash Flow

Givaudan delivered an operating cash flow of CHF 1,288 million in 2021, compared to CHF 1,189 million in 2020.

Net working capital as a percentage of sales was 24.0%, compared to 24.4% in 2020.

Total net investments in property, plant and equipment were CHF 177 million, compared to CHF 180 million in 2020, as the Group continues to invest in expanding its capabilities in high growth markets.

Intangible asset additions were CHF 70 million in 2021, compared to CHF 37 million in 2020 as the Company continued to invest in its IT platform capabilities, including those related to the integration of the acquisitions that the Group has made.

Total net investments in tangible and intangible assets were 3.7% of sales in 2021, compared to 3.4% in 2020.

Operating cash flow after net investments was CHF 1,041 million in 2021, versus CHF 972 million in 2020. Free cash flow4 was CHF 843 million in 2021, versus CHF 811 million for the comparable period in 2020. As a percentage of sales, free cash flow in 2021 was 12.6%, compared to 12.8% in 2020.

Financial Position

Givaudan's financial position remained solid at the end of the year. Net debt at December 2021 was CHF 4,394 million, compared to CHF 4,040 million at December 2020, with the increase driven by the acquisitions of DDW and Custom Essence. At the end of December 2021 the leverage ratio5 was 51%, compared to 50% at the end of 2020. The net debt to EBITDA ratio6 was 2.97, compared to 2.89 at December 2020.

3/11

Ad hoc announcement pursuant to article 53 LR

Geneva, 28 January 2022

Dividend Proposal

At the Annual General Meeting on 24 March 2022, Givaudan's Board of Directors will propose a cash dividend of CHF 66.00 per share for the financial year 2021, an increase of 3.1% versus 2020. This is the twenty-first consecutive dividend increase following Givaudan's listing at the Swiss stock exchange in 2000.

2025 guidance: Committed to Growth, with Purpose

The Company's 2025 ambition is to deliver sustainable value creation for all stakeholders. Givaudan's 2025 strategy is fully in line with its purpose and places customers at the heart of its business, supporting them to grow and create products that are loved by consumers.

The 2025 strategy is focussed around three growth drivers, 'Expand the portfolio', 'Extend customer reach' and 'Focussed market strategies' and is supported by four growth enablers, which are aligned with the Company's purpose domains, namely creations, nature, people and communities. These three growth drivers and four enablers are all underpinned by a commitment to 'Excellence, Innovation & Simplicity - in everything we do'.

Ambitious targets are an integral part of Givaudan's 2025 strategy, with the Company aiming to achieve organic sales growth of 4-5% on a like-for-like basis and free cash flow4 of at least 12%, both measured as an average over the five-year period strategy cycle. In addition, the Company aims to deliver on key non-financial targets around sustainability, diversity and safety, linked to Givaudan's purpose.

Givaudan's purpose

The Company's purpose, 'Creating for happier, healthier lives with love for nature. Let's imagine together', is at the heart of its strategy. Under the purpose, Givaudan has defined bold and ambitious goals in four domains, namely creations, nature, people and communities. These ambitions include doubling its business through creations that contribute to happier, healthier lives by 2030, becoming 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.

4/11

Ad hoc announcement pursuant to article 53 LR

Geneva, 28 January 2022

Key Figures

For the twelve months ended 31 December,

in millions of Swiss francs except per share data

2021

2020

Group Sales

6,684

6,322

Fragrance & Beauty sales

3,091

2,924

3,593

Taste & Wellbeing sales

3,398

Gross profit

2,855

2,659

as % of sales

42.7%

42.1%

1,397

EBITDA2

1,482

as % of sales

22.2%

22.1%

Operating income

1,089

996

as % of sales

16.3%

15.8%

Income attributable to equity holders of the parent

821

743

as % of sales

12.3%

11.8%

Earnings per share − basic (CHF)

89.03

80.59

Operating cash flow a

1,288

1,189

as % of sales

19.3%

18.8%

Free cash flow

843

811

as % of sales

12.6%

12.8%

  1. After careful consideration with the Group auditors, the Group has determined that purchase and sale of own equity instruments relates to financing activities and has been reclassified from cash flows from (for) operating activities into cash flows from (for) financing activities.

in millions of Swiss francs, except for

31 December

31 December

employee data

2021

2020

- Current assets

3,299

3,406

- Non-current assets

7,359

8,014

Total assets

10,658

11,420

- Current liabilities

1,796

2,318

- Non-current liabilities

5,354

5,161

- Equity

3,508

3,941

Total liabilities and equity

10,658

11,420

Number of employees

15,852

16,842

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Disclaimer

Givaudan SA published this content on 28 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2022 05:15:02 UTC.