Givaudan S.A. stands as a global powerhouse, deeply rooted in creating innovative solutions that enhance everyday life. Known for its commitment to excellence, the company thrives by blending human creativity with nature’s inspiration.
Business Segments
Givaudan operates through two primary business segments, each contributing significantly to its revenue and global reputation.
Taste & Wellbeing
This segment focuses on delivering flavor and wellbeing solutions, catering to a wide range of consumer needs. It encompasses:
- Snacks: Innovative flavor profiles for snack foods, contributing to a substantial portion of the segment’s growth.
- Fine Fragrances: High-end fragrance creation for luxury markets.
- Sweet Goods: Flavor solutions for confectionery and desserts.
- Oral Care: Ingredients enhancing oral hygiene products.
- Home Care: Fragrances for household cleaning and air freshening products.
- Savoury: Flavor enhancements for savory dishes and ready meals.
- Personal Care: Ingredients for personal hygiene and cosmetic products.
- Beverages: Flavor systems for a variety of drinks.
- Beauty & Skin Care: Active ingredients for skincare formulations.
- Fabric Care: Fragrances for laundry and fabric softeners.
- Neutraceuticals: Nutritional supplements supporting health and wellness.
- Dairy: Flavor and texture solutions for dairy products.
The Taste & Wellbeing segment drives innovation in food and nutrition, aligning with evolving consumer preferences for healthier and tastier options. This segment’s growth is anchored in double-digit increases in categories like snacks, beverages, and dairy, reflecting a robust response to market demands.
Fragrance & Beauty
This segment specializes in creating captivating fragrances and beauty solutions, including:
- Fine Fragrances: Premium scents for perfumes and colognes.
- Beauty & Skin Care: Advanced ingredients for cosmetic and skincare applications.
- Oral Care: Specialized formulations for oral health products.
- Home Care: Aromatic solutions for home environments.
- Fabric Care: Scented products for textiles.
Fragrance & Beauty leverages cutting-edge research and scientific breakthroughs to meet the demands of both luxury and mass-market beauty industries. The segment’s leadership is evident in the 18.4% growth of Fine Fragrances, showcasing its dominance in high-value fragrance creation.
Revenue Breakup
- Taste & Wellbeing: Approximately 50% of total group sales, reflecting strong double-digit growth in key categories such as snacks, beverages, and dairy. This segment’s success is driven by its ability to innovate across a broad array of products, meeting evolving consumer expectations for taste and nutrition.
- Fragrance & Beauty: Approximately 50% of total group sales, with Fine Fragrances leading at an impressive 18.4% growth rate. This segment’s performance is bolstered by its focus on luxury markets and the integration of advanced beauty ingredients.
The balanced revenue split highlights Givaudan’s diversified approach, ensuring stability and growth across both segments.
Products and Services
Givaudan offers an extensive portfolio of products and services designed to meet diverse consumer needs, with a revenue breakup as follows:
- Snacks: Flavor innovations that enhance the taste of snack foods, contributing significantly to the Taste & Wellbeing segment’s growth. This category benefits from high double-digit volume increases, reflecting consumer demand for innovative snack options.
- Fine Fragrances: Luxury scents crafted for perfumes and colognes, a key driver in the Fragrance & Beauty segment with a notable 18.4% growth rate. This product line caters to premium markets, solidifying Givaudan’s reputation in high-end fragrance creation.
- Sweet Goods: Confectionery flavors that add value to desserts and sweets, showing good momentum and supporting the segment’s diverse offerings.
- Oral Care: Ingredients that enhance oral hygiene products, ensuring quality and effectiveness in personal care solutions.
- Home Care: Fragrances designed for household cleaning and air freshening products, improving living environments with aromatic solutions.
- Savoury: Flavor enhancements for savory dishes and ready meals, catering to the growing demand for convenient yet tasty food options.
- Personal Care: Ingredients for personal hygiene and cosmetic products, supporting a wide range of consumer health and beauty needs.
- Beverages: Flavor systems for a variety of drinks, driving double-digit growth in the Taste & Wellbeing segment.
- Beauty & Skin Care: Biotech beauty ingredients, positioning Givaudan as the leading benchmark in Active Beauty with high-precision formulations.
- Fabric Care: Laundry scents that enhance textile products, contributing to the Fragrance & Beauty segment’s diversity.
- Neutraceuticals: Health supplements like Svetol™, which supports weight management and cardiovascular health, demonstrating Givaudan’s focus on wellbeing.
- Dairy: Flavor and texture solutions for dairy products, enhancing taste and quality in this growing category.
Revenue Breakup %
- Snacks, Beverages, Dairy: High double-digit growth, forming a significant portion of Taste & Wellbeing revenue. These categories collectively drive the segment’s 50% share of group sales, with snacks and beverages leading the charge.
- Fine Fragrances: 18.4% growth, a major contributor to Fragrance & Beauty’s revenue, reflecting its strong performance in the luxury market.
- Other Categories: Varied contributions from Oral Care, Home Care, and Fabric Care support overall revenue diversity, with each category adding to the segment’s balanced growth.
Services
Beyond products, Givaudan provides comprehensive services, including:
- Research and Development: Investing around 8% of sales in R&D to innovate in Taste, Sense, Nutrition, and protein alternatives, as well as ingredients and delivery systems.
- Co-Creation: Partnering with customers, industry leaders, academia, start-ups, and technology providers to develop tailored solutions.
- Integrated Solutions: High added-value offerings in Taste & Wellbeing, enhancing customer partnerships and product development.
These services underscore Givaudan’s commitment to meeting evolving consumer needs and maintaining its position as an industry leader.
Company History
Givaudan’s journey began with a legacy of craftsmanship and innovation, evolving into a global leader in fragrance and flavor creation. The company’s origins lie in its early focus on blending artistry with scientific advancements, a tradition that has propelled its growth over the decades. Through strategic acquisitions and a steadfast commitment to sustainability, Givaudan has expanded its portfolio to include wellbeing and beauty solutions. This evolution reflects its ability to adapt to changing market dynamics, forging partnerships to support innovation and growth. The company’s history is a testament to its resilience, marked by a continuous pursuit of excellence and responsible value creation.
Brands
Givaudan’s brand portfolio reflects its diverse offerings, with revenue contributions integrated into its segment performance. Key brands include:
- PrimalHyal™ 50 Life: A low molecular weight hyaluronic acid designed for skincare, representing a revolutionary production method that reduces environmental impact by 91%. This brand supports the Beauty & Skin Care category with innovative solutions.
- SunThesis®: A sustainable alternative to natural citrus oils, crucial for mitigating environmental impact amid declining and volatile supplies due to greening disease. It ensures a stable ingredient supply, enhancing the Savoury and Beverages categories.
- Neuroglow™: An ingredient that uplifts mood and positive emotions, contributing to the Personal Care and Beauty & Skin Care offerings.
- Svetol™: A neutraceutical that supports weight management and cardiovascular health, aligning with the growing demand for health-focused products in the Neutraceuticals category.
Revenue Breakup %
- Specific revenue percentages for individual brands are not detailed, but they collectively support the 50% revenue split between Taste & Wellbeing and Fragrance & Beauty. Innovations like PrimalHyal™ and SunThesis® drive significant growth within their respective categories, contributing to the overall 12.3% like-for-like sales increase.
These brands exemplify Givaudan’s focus on creating products that promote happier and healthier lives, reinforced by strategic investments in research and development.
Geographical Presence
Givaudan’s global footprint spans multiple regions, with revenue and operational details as follows:
North America
- Sales: 12% of total group sales, reflecting a solid market presence in this region.
- Employees: 14% of total employees, supporting operations across 17 sites.
- Sites: 17, including production facilities and research centers, contributing to the 162 sites worldwide.
EAME (Europe, Africa, Middle East)
- Sales: 25% of total group sales, indicating a strong European market foothold.
- Employees: 21% of total employees, with 48 sites driving regional growth.
- Sites: 48, encompassing a mix of production and creation facilities.
Asia Pacific
- Sales: 23% of total group sales, with high growth markets like China leading at 19.5%.
- Employees: 18% of total employees, supported by 22 sites.
- Sites: 22, including the new Fine Fragrance Creative Centre in Shanghai.
Latin America
- Sales: 40% of total group sales, the largest regional contributor.
- Employees: 47% of total employees, reflecting significant operational investment.
- Sites: 75, the highest number of sites, enhancing production and research capabilities.
Total Presence
- Sites: 162 sites worldwide, comprising 78 production sites and 62 creation & research centers.
- Employees: 16,942 full-time employees, a diverse workforce driving global operations.
- Products Sold: ~128,400, showcasing the company’s extensive product range.
- Group Sales: CHF 7,412 million, a 12.3% like-for-like increase from 2023’s CHF 6,915 million.
- Customers: 42% global, 58% local & regional, reflecting a balanced customer base.
This global presence provides unique exposure to a variety of markets, supported by a robust operational footprint.
Financial Performance
Consolidated Profit and Loss Statement
| Item | 2024 (CHF million) | Notes |
|---|---|---|
| Sales | 7,412 | Up 12.3% LFL from 2023’s 6,915 |
| EBITDA Margin | 24.5% | Comparable margin performance |
| Free Cash Flow | 1,158 | 15.6% of sales, up from 13.3% |
| Free Cash Flow % of Sales | 15.6% | Reflects strong cash generation |
| Dividend per Share | 70.00 | Proposed, up from 68.00 in 2023 |
Subsidiaries, Wholly-Owned Subsidiaries, and Associates
Givaudan’s structure includes various entities, with scope details indicating inclusions and exclusions:
Subsidiaries
- DDW: Excluded from social performance indicators, reflecting its non-integrated status for employee data.
- Custom Essence: Excluded from social performance indicators, indicating limited reporting integration.
- Expressions Parfumées: Excluded from procurement spend data, with information not considered in Sourcing4Good efforts.
- Fragrance Oils: Excluded from social performance indicators, limiting its inclusion in workforce metrics.
- Albert Vielle: Excluded from social performance indicators, reflecting acquisition-specific reporting exclusions.
- G-Nutra: Excluded from social performance indicators, indicating partial integration.
- Alderys: Excluded from social performance indicators, with data not fully incorporated.
- b.Kolormakeup & Skincare S.p.A.: Excluded from safety and environmental data, though recently acquired for innovative solutions.
Wholly-Owned Subsidiaries
- All Givaudan entities and acquisitions since 2014 are considered wholly-owned for financial reporting, providing a comprehensive scope. Exceptions include b.Kolormakeup & Skincare S.p.A. for certain non-financial data.
Associates
- No specific associates are detailed; however, entities like Vika sites and parts of Naturex and Ungerer are not fully integrated into reporting scopes, suggesting potential associate relationships under development.
Revenue Breakup %
- Specific revenue contributions from subsidiaries are not isolated, but they collectively support the CHF 7,412 million group sales. Exclusions like b.Kolormakeup & Skincare S.p.A. impact non-financial data scopes, with financial integration ongoing since 2014.
Physical Properties
Givaudan’s physical infrastructure supports its global operations, providing a foundation for innovation and production:
- Total Sites: 162 worldwide, a network of facilities driving global reach.
- Production Sites: 78, dedicated to manufacturing high-quality products.
- Creation & Research Centers: 62, fostering scientific breakthroughs and product development.
- Regional Breakdown:
- North America: 17 sites, supporting 12% of sales.
- EAME: 48 sites, underpinning 25% of sales.
- Asia Pacific: 22 sites, contributing to 23% of sales.
- Latin America: 75 sites, driving 40% of sales.
These properties include offices, plants, factories, and research facilities, enhancing Givaudan’s operational efficiency and innovation capacity.
Founders Details
Specific founder details are not explicitly provided in the available data. Givaudan’s origins trace back to its establishment as a fragrance and flavor company, with growth driven by visionary leadership over time. The company’s foundation is built on a legacy of craftsmanship, evolving through strategic initiatives and market adaptation.
Board of Directors
The board oversees strategic direction, governance, and ESG strategy, with the following members:
- Calvin Grieder: Chairman, guiding the establishment of 2030 ambitions with a focus on sustainable growth. His leadership emphasizes talent development and succession planning.
- Olivier Filliol: Retiring member, with gratitude extended for his dedication and significant contributions over his tenure. He will retire at the AGM on 20 March 2025.
- Melanie Maas-Brunner: Proposed for election effective the AGM date, 20 March 2025, bringing new expertise to the board.
- Louie D’Amico: Proposed for election effective 1 October 2025, enhancing board diversity with extensive experience.
Details
- Composition: 100% non-executive and independent members, ensuring unbiased governance.
- Succession Planning: A robust program reviews Executive Committee succession, nominating internal leaders for retiring members and ensuring stability.
Shareholding Details
- Dividend per Share: CHF 70.00, proposed for 2024, subject to shareholder approval at the AGM on 20 March 2025. This marks the twenty-fourth consecutive increase from CHF 68.00 in 2023.
- Shareholder Value Creation: Strong focus with 15.6% free cash flow and 12.3% like-for-like sales growth, highlighting the company’s commitment to returning cash to shareholders.
Parent Company Details
No parent company is indicated; Givaudan operates as an independent entity, managing its global operations autonomously.
Investment Details
Passive Investments
- Specific passive investment details are not provided, but investments in research and development (8% of sales) and acquisitions like b.Kolormakeup & Skincare drive growth. These investments support innovation in Taste, Sense, Nutrition, and beauty ingredients.
Revenue Breakup %
- Investments in R&D and acquisitions contribute to the overall CHF 7,412 million sales, with no isolated passive investment revenue specified. The 8% R&D investment translates into tangible innovations, bolstering segment performance.
Future Investment Plans
Givaudan is actively establishing 2030 ambitions, focusing on:
- Expanding Digital and AI Capabilities: Enhancing business agility with platforms like Customer Foresight, which innovate food and beverage experiences using AI-run systems.
- Enhancing Sustainability Targets: Aiming for climate-positive status with a 48% reduction in GHG emissions since 2015 and 100% purchased renewable electricity.
- Strengthening Presence in High-Growth Markets: Initiatives like L’Appartement 125 in Shanghai foster co-creation with Chinese brands, supporting the 19.5% growth in high-growth markets.
This comprehensive strategy positions Givaudan for a sustainable growth path, leveraging innovation and global expansion.
