VERNIER (dpa-AFX) - Demand for expensive perfumes and flavors for snacks and beverages gave Givaudan a tailwind in the first half of the year. In addition, more of its sales were retained as operating profit than in the same period last year. Analyst Charlie Bentley from investment house Jefferies nevertheless sees both light and shade in the results. In the course of the publication of the business figures on Tuesday, the competitor of the Dax group Symrise also announced the appointment of Stewart Harris as Chief Financial Officer as of August 1. The manager succeeds Tom Hallam, who will retire at the end of January 2025 and will provide support and advice until then.

Givaudan increased its sales by 5.7 percent to 3.37 billion Swiss francs (3.48 billion euros) from January to the end of June compared to the same period last year. The supplier of flavors and fragrances for food, perfumes, household and personal care products grew by 12.5 percent on its own - i.e. adjusted for acquisitions and disposals of business units and currency effects - which is more than analysts had expected on average.

Profitability also increased as a result of the sales growth and thanks to cost measures. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew by almost 19 percent to 906 million Swiss francs. The corresponding margin improved from 21.6 to 24.2 percent. At the bottom line, Givaudan earned 588 million, 31 percent more than a year ago.

Overall, the fragrances and cosmetic additives business performed better than expected, while the Taste & Wellbeing division, which focuses on food additives, fell short of expectations, explained Jefferies analyst Charlie Bentley. The growth of Taste and Wellbeing in the second quarter in North and Latin America had apparently slowed compared to the first quarter of the year.

As usual, Givaudan is not giving a concrete outlook for the current year. However, the medium-term targets remain unchanged. Accordingly, the Group is aiming for organic sales growth of at least 4 to 5 percent per year./mis/AWP/jl/ra/