ZURICH--Givaudan SA (GIVN.VX) posted better-than-expected
first-quarter sales even as the flavor-and-fragrance maker faced
tougher conditions in emerging markets, including China and Latin
America.
Geneva-based Givaudan, the world's largest maker of flavors,
said revenue rose 0.4% to 1.09 billion Swiss francs ($1.12 billion)
in the three months ended March from 1.087 billion francs a year
earlier. The results topped analyst expectations of 1.07 billion
francs.
The company, which supplies flavorings to food makers such as
Nestle SA (NESN.VX), Mondelez International Inc. (MDLZ) and
Unilever NV (UN), doesn't report full earnings for the first
quarter. Givaudan also makes ingredients for well-known perfumes
such as Yves Saint Laurent's "Opium" and Christian Dior's
"J'adore."
The slowdown in emerging markets weighed on Givaudan's
performance. The company has focused on emerging markets for the
past several years and they generate about 45% of its revenue. But
food manufacturers and perfume makers, which use Givaudan's
ingredients, have reported tough environments in many of these
countries, reducing demand.
For the first three months of the year, Givaudan's sales of
flavors to Asia-Pacific fell 3.1% in local currencies, excluding
acquisitions, down from 11% growth a year earlier. Latin American
flavor sales gained 7.6%, down from 15% revenue growth in the first
three months of 2014.
In the fragrances division, which makes up around half of its
sales, growth in Europe failed to offset sluggish demand from Latin
America.
Givaudan kept its guidance of 4.5% to 5.5% sales growth for the
year, excluding currency fluctuations and acquisitions, and said it
still expects to gain market share.
Write to John Revill at john.revill@wsj.com
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