Givaudan SA · SIX:GIVN
Givaudan SA — FY2022 Earnings Presentation
30 slides from Givaudan SA's earnings presentation, Jan 25, 2023
Slide 1: 2022 Full Year Results
25 January 2023 2022 Full Year Results Solid business performance in a challenging environment
Slide 2: Performance highlights
Gilles Andrier Chief Executive Officer Performance highlights
Slide 3: 2022 Full year results: Solid business performance in a challenging environment
2022 Full year results Solid business performance in a challenging environment • Sales of CHF 7.1 billion, up 5.3% on a like-for-like* basis and 6.5% in Swiss francs • Strong contribution from high growth markets with an increase of 9.9% on a like-for-like* basis • EBITDA of CHF 1,476 million – EBIT
Slide 4: Sales performance: Solid growth in both divisions
Sales performance Solid growth in both divisions In CHF million FY 2021 FY 2022 7,117 6,684 3,593 3,861 3,091 3,256 Group Fragrance & Beauty Taste & Wellbeing 5.3% 5.5% 5.2% % 2022 growth on LFL* basis 6.5% 5.3% 7.5% % 2022 growth in CHF 7.1% 6.6% 7.6% % 2021 growth in LFL* basis * Like-for-like: ex
Slide 5: Sales evolution by market
Sales evolution by market Strong performance in high growth markets In CHF million FY 2021 FY 2022 3,961 3,831 3,156 2,853 Mature High growth 57% 56% 43% 44% % of total sales 1.9% 9.9% % 2022 growth on LFL* basis 6.3% 8.3% % 2021 growth on LFL* basis * Like-for-like: excludes the impact of currency,
Slide 6: Sales evolution by region
Sales evolution by region Strong performance in EAME and LATAM In CHF million FY 2021 FY 2022 2,626 2,449 1,824 1,881 1,688 1,772 838 723 LATAM APAC NOAM EAME 10.4% 5.2% -5.4% 11.9% % 2022 growth on LFL* basis 15.9% 5.0% 3.1% 7.2% % 2022 growth in CHF 14.4% 5.7% 4.8% 7.8% % 2021 growth on LFL* basis
Slide 7: Fragrance & Beauty
Fragrance & Beauty Sales growth of 5.5% on a LFL basis In CHF million Fine Fragrance sales increased by 14.3% LFL • Continuing strong performance, despite prior year comparable 3,256 +5.3% growth of 23% 3,091 • Supported by a rebound in prestige fragrances and a pick up in travel retail channels Con
Slide 8: Taste & Wellbeing
Taste & Wellbeing Sales growth of 5.2% on a LFL basis In CHF million Sales by region 2021 2022 Sales Growth Sales Growth 3,861 LFL LFL +7.5% Europe 6.3% 11.1% South Asia, Middle East and Africa 6.1% 17.6% 3,593 North America 5.8% -6.4% Latin America 19.3% 16.7% Asia Pacific 7.4% 5.3% Sales commentar
Slide 9: Differentiation through combining creative design and sustainability
Differentiation through combining creative design and sustainability 2022 highlights Primelock+™ Patchoul’Up™ • Natural vegan-friendly solution, mimicking • 100% upcycled active for hair and scalp animal fat cell • Sourced responsibly in Indonesia • Enhancing juiciness, flavour and stability • Craft
Slide 10: Operating performance
Tom Hallam Chief Financial Officer Operating performance
Slide 11: 2022 Full year results: Performance highlights
2022 Full year results Performance highlights • Sales of CHF 7,117 million, up 5.3% on a like-for-like* basis and 6.5% in Swiss francs • EBITDA of CHF 1,476 million compared to CHF 1,482 million in 2021 • Reported EBITDA margin of 20.7% compared to 22.2% in 2021, with the comparable EBITDA margin at
Slide 12: Exchange rate development
2022 Full year results Exchange rate development 9% 6% 4% 1% 0% 0% -6% -7% -12% JPY USD GBP EUR SGD BRL CNY MXN IDR FY 2022 0.73 0.95 1.18 1.00 0.69 0.19 14.17 4.75 0.64 FY 2021 0.83 0.91 1.26 1.08 0.68 0.17 14.19 4.49 0.64 Units 100 1 1 1 1 1 100 100 10,000 Investor conference call - 2022 Full year
Slide 13: Operating performance: Group
Operating performance Group EBITDA in CHF million Gross margin Sales of CHF 7,117 million, an increase of 5.3% on a like-for- 42.7% in % 38.8% like basis* and 6.5% in Swiss francs 1,482 EBITDA of CHF 1,476 million, compared to CHF 1,482 1,476 million in 2021 EBITDA margin of 20.7% compared to 22.2%
Slide 14: Operating performance: Fragrance & Beauty
Operating performance Fragrance & Beauty Sales in CHF million 696 EBITDA 698 Sales of CHF 3,256 million, an increase of 5.5% on a like- in CHF million for-like basis* and 5.3% in Swiss francs EBITDA of CHF 698 million, compared to CHF 696 million +5.5% 3,256 in 2021 LFL growth 3,091 Acquisition and
Slide 15: Operating performance: Taste & Wellbeing
Operating performance Taste & Wellbeing Sales in CHF million EBITDA 786 in CHF million 778 Sales of CHF 3,861 million, an increase of 5.2% on a like- for-like basis* and of 7.5% in Swiss francs +5.2% 3,861 EBITDA of CHF 778 million, compared to CHF 786 million LFL growth in 2021 3,593 Acquisition an
Slide 16: Net income
Net income 12.0% of sales In CHF million Income before tax of CHF 928 million compared to 856 CHF 965 million in 2021 +4.2% Net income of CHF 856 million, or 12.0% of sales, versus 821 CHF 821 million, or 12.3% of sales in 2021 Effective tax rate of 8%, compared to 15% in 2021, driven by the tax eff
Slide 17: Free cash flow
Free cash flow 6.7% of sales In CHF million Free cash flow of CHF 479 million, compared to CHF 843 843 million in 2021. Free cash flow is 6.7% of sales compared to 12.6% in 2021 Operating cash flow of CHF 948 million, compared to CHF 1,288 million in 2021 479 Total net investments of CHF 289 million
Slide 18: Amortisation of intangible assets
Amortisation of intangible assets Total estimated annual amortisation charge In CHF million (updated to include all recent acquisitions) 155 143 135 132 127 121 43 40 40 40 40 40 103 103 95 92 87 81 4 5 2022 2023E 2024E 2025E 2026E 2027E Pre Quest Quest Other acquisitions Other IT Investor conferenc
Slide 19: Dividend per share
Dividend per share Increasing 1.5% over 2021 64 66 67* 56 58 60 62 54 47 50 36 20.6 21.5 22 843 18.8 19.5 20 811 16.3 17.6 787 15.4 720 703 662 8.1 604 597 594 7 6.5 549 512 479 437 390 340 295 289 273 262 203 157 145 117 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 201
Slide 20: Balanced debt structure
Balanced debt structure Debt maturities and average borrowing rates The weighted average effective interest rate for the Group is 1.74% (2021: 1.37%). Debt maturity in CHF million Average interest rates in % 2.45 % 1,050 1.74 % 1.17 % 938 766 1.63 % 475 1.72 % 492 2.57 % 373 0.63 % 307 1.51 % 0.34 %
Slide 21: Net debt to EBITDA
Net debt to EBITDA 3.43 3.45 3.21 3.08 3.07 2.89 2.97 2.88 2.49 2.19 HY 2018 FY 2018 HY 2019 FY 2019 HY 2020 FY 2020 HY 2021 FY 2021 HY 2022 FY 2022 21
Slide 22: 2025 Strategy, Outlook
Gilles Andrier Chief Executive Officer 2025 Strategy Outlook
Slide 23: Strategy 2025: Committed to Growth, with Purpose
Strategy 2025 Committed to Growth, with Purpose Creations Nature We create inspiring We show our love solutions for happier, for nature through healthier lives impactful actions Growing together with our People customers Communities We nurture a place We bring benefits where we all love to to all co
Slide 24: Strategy 2025 Performance commitments
Strategy 2025 Performance commitments Sales growth Free cash flow Purpose commitments 4.0 – 5.0% >12% of Sales Purpose linked targets 2021 – 2025 2021 – 2025 2021 – 2025 Average Like for Like1 Sales Growth Average FCF2 as % of sales Progress towards all published purpose targets 1. Like-for-like (LF
Slide 25: 2023 Outlook: Key themes review
2023 Outlook Key themes review 2023 outlook Performance improvement programme Financial impact • Very well positioned with our • Strong focus on operational excellence • Restructuring costs of up CHF 60 capabilities and our 2025 strategy and on review of the manufacturing million expected in 2023 (C
Slide 26: Q&A
Q&A
Slide 27: Thank you
Thank you Investor conference call - 2022 Full year results 27
Slide 28: Disclaimer
Disclaimer No warranty and no liability: While Givaudan is making great efforts to include accurate and up-to-date information, we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided on this presentation/handout and disclaim any
Slide 29: Follow us on social media @givaudan
Follow us on social media @givaudan
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