Givaudan Sa · SIX:GIVN
Givaudan Sa — H1 2023 Earnings Presentation
29 slides from Givaudan Sa's earnings presentation, Jul 20, 2023
Slide 1: 2023 Half year results
20 JULY 2023 2023 Half year results Conference call for Investors and Analysts
Slide 2: Sales performance
Sales performance Gilles Andrier Chief Executive Officer
Slide 3: Solid Business Performance
2023 Half year results Solid Business Performance • Sales of CHF 3,535 million, an increase of 2.4% on a like-for-like* basis and a decrease of 3.2% in Swiss francs • Strong sales performance in high growth markets, in Europe and in Fine Fragrances • Performance improvement initiatives are well on t
Slide 4: Half year sales performance
Half year sales performance Solid growth in challenging markets In CHF million HY 2022 HY 2023 3,652 3,535 2,006 1,863 1,646 1,672 Group Fragrance & Beauty Taste & Wellbeing -3.2% 1.6% -7.1% % 2023 growth in CHF 2.4% 6.4% -0.9% % 2023 growth on LFL* basis 6.2% 4.7% 7.6% % 2022 growth on LFL* basis *
Slide 5: Sales evolution by market
Sales evolution by market Good performance in high growth markets In CHF million HY 2022 HY 2023 2,076 1,954 1,576 1,581 Mature High growth 57% 55% 43% 45% % of total sales -2.6% 8.9% % 2023 growth on LFL* basis 5.4% 7.4% % 2022 growth on LFL* basis * Like-for-like: excludes the impact of currency,
Slide 6: Sales evolution by region
Sales evolution by region Strong growth in LATAM & EAME In CHF million HY 2022 HY 2023 1,365 1,405 984 883 852 855 420 423 LATAM APAC NOAM EAME 11.1% 3.2% -10.6% 8.5% % 2023 growth on LFL* basis 9.0% 2.7% -1.5% 13.7% % 2022 growth on LFL* basis * Like-for-like: excludes the impact of currency, acqui
Slide 7: Fragrance & Beauty
Fragrance & Beauty Sales growth of 6.4% on a LFL* basis Fine Fragrance sales increased by 16.2% LFL* In CHF million • Excellent growth maintained across prestige brands, as well as with regional brands in high growth markets 1,672 +1.6% • Strong contribution of new wins 1,646 Consumer Product sales
Slide 8: Taste & Wellbeing
Taste & Wellbeing Sales growth of -0.9% on a LFL* basis In CHF million Sales by region 2022 2023 Sales Growth Sales Growth 2,006 LFL* LFL* Europe 14.0% 3.6% -7.1% South Asia, Middle East and Africa 16.9% 19.1% 1,863 North America -0.9% -11.7% Latin America 17.1% 10.5% Asia Pacific 5.1% - 5.0% Sales
Slide 9: Operating performance
Operating performance Tom Hallam Chief Financial Officer
Slide 10: Performance highlights
2023 Half year results Performance highlights • Sales of CHF 3,535 million, an increase of 2.4% on a like-for-like* basis and a decrease of 3.2% in Swiss francs • Reported EBITDA of CHF 763 million compared to CHF 816 million, with an EBITDA margin of 21.6% compared to 22.4% in 2022 • Comparable EBI
Slide 11: Exchange rate development
Half year results Exchange rate development 8% -1% -3% -4% -4% -7% -6% -9% -12% JPY USD GBP EUR SGD BRL CNY MXN IDR HY 2023 0.67 0.91 1.13 0.99 0.68 0.18 13.16 5.02 0.61 HY 2022 0.77 0.94 1.22 1.03 0.69 0.19 14.51 4.65 0.65 Units 100 1 1 1 1 1 100 100 10,000 2023 Half year results - Givaudan Confere
Slide 12: Operating performance Group
Operating performance Group EBITDA in CHF million Sales of CHF 3,535 million, an increase of 2.4% on a like-for-like basis* 40.0% Gross margin in % 41.0% and a decrease of 3.2% in Swiss francs Gross margin of 41.0%, compared to 40.0% in 2022, with 816 +2.4% performance improvement programmes already
Slide 13: Operating performance Fragrance & Beauty
Operating performance Fragrance & Beauty Sales in CHF million EBITDA 362 in CHF million 383 Sales of CHF 1,672 million, an increase of 6.4% on a like-for-like basis* and 1.6% in Swiss francs 1,672 EBITDA of CHF 383 million, increased from CHF 362 million in 2022 1,646 +6.4% LFL growth Acquisition an
Slide 14: Operating performance Taste & Wellbeing
Operating performance Taste & Wellbeing Sales in CHF million EBITDA 454 in CHF million 380 Sales of CHF 1,863 million, a decrease of 0.9% on a like-for-like basis* and a decrease 7.1% in Swiss francs 2,006 EBITDA of CHF 380 million, decreased from CHF 454 million in 2022 -0.9% Acquisition and restru
Slide 15: Net income
Net income 12.7% of sales In CHF million Income before tax of CHF 516 million compared to CHF 512 million in 2022 449 Net income of CHF 449 million, or 12.7% of sales, versus 440 CHF 440 million, or 12.1% of sales in 2022 Higher interest costs driven by rising interest rates Other non-operating cost
Slide 16: Free cash flow
Free cash flow Improvement driven by higher operating cash flow In CHF million Free cash flow of CHF 104 million, compared to CHF -147 million in 2022. Free cash flow is 2.9% of sales compared to -4.0% in 2022 104 Operating cash flow of CHF 340 million, compared to CHF 131 million in 2022 +251 Total
Slide 17: 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 2023 Half year res
Slide 18: Balanced debt structure
Balanced debt structure Debt maturities • In 2023, the Group exercised the option to extend the Group level committed credit facility for a further year until June 2028. This leaves one year of a further extension option which the Group plans to exercise next year • The weighted average effective in
Slide 19: Net debt to EBITDA
Net debt to EBITDA 3.68 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 HY 2023 2023 Half year results - Givaudan Conference Call for Investors and Analysts 19
Slide 20: 2025 Strategy and Outlook
2025 Strategy and Outlook Gilles Andrier Chief Executive Officer
Slide 21: 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 22: 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 23: Key innovations addressing customer needs and consumer trends
Key innovations addressing customer needs and consumer trends 2023 Highlights Geogaia™ Sense It® Draws inspiration from Petrichor, which is First developed in 1993, it has become a defined as the smell that comes from the ground universal and standardised language used when rain falls after a dry pe
Slide 24: Givaudan leading the way in decarbonisation roadmap
Givaudan leading the way in decarbonisation roadmap On track towards our climate ambitions 2023 Half year results - Givaudan Conference Call for Investors and Analysts 24
Slide 25: 2023 Outlook
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 CHF 60 million capabilities and our 2025 strategy and on review of the manufacturing expected in 2023 (CHF
Slide 26: Q&A
Q&A
Slide 27: 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 28: Follow us on social media @givaudan
Follow us on social media @givaudan
Slide 29: Slide 29