Givaudan Sa · SIX:GIVN
Givaudan Sa — H1 2021 Earnings Presentation
26 slides from Givaudan Sa's earnings presentation, 2021
Slide 1: 2021 Half year results: Strong financial performance
2021 Half year results Strong financial performance
Slide 2: Gilles Andrier, CEO: Sales performance
Gilles Andrier Chief Executive Officer Sales performance
Slide 3: Performance highlights
2021 Half year results Performance highlights • Sales of CHF 3,373 million, up 7.9% on a like-for-like* basis and 4.7% in Swiss francs • Excellent sales across all markets and segments, with strong contribution from 2025 strategic growth areas • Strong performance of high growth markets with a like-
Slide 4: Half year sales performance: Good growth in both divisions
Half year sales performance Good growth in both divisions HY 2020 HY 2021 3 373 3 221 1 765 1 809 1 456 1 564 Group Fragrance & Beauty Taste & Wellbeing 7.9% 10.1% 6.1% % 2021 growth on LFL* basis 4.7% 7.4% 2.5% % 2021 growth in CHF * LFL (like-for-like) excludes the impact of currency, acquisitions
Slide 5: Sales portfolio performance: COVID-19 impact analysis
Sales portfolio performance COVID-19 impact analysis Higher impact ** Lower impact ** Lower impacted business LFL* growth 2020 & 2021 Q1 2020 Q2 2020 HY 2020 Q1 2021 Q2 2021 HY 2021 16% Group 7.5% 11.7% 9.6% 9.6% 2.2% 5.8% F&B 7.5% 12.7% 10.0% 10.7% 1.0% 5.8% 84% T&W 7.6% 11.1% 9.3% 8.7% 3.1% 5.8% 1
Slide 6: Sales evolution by market
Sales evolution by market Strong performance in mature markets HY 2020 HY 2021 1 868 1 938 1 353 1 435 Mature High growth 58% 57% 42% 43% % of total sales 6.1% 10.4% % 2021 growth on LFL* basis * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals Investor conference call
Slide 7: Sales evolution by region
Sales evolution by region All regions contributing to the growth HY 2020 HY 2021 1 233 1 166 901 924 816 851 338 365 LATAM APAC NOAM EAME 21.2% 6.3% 7.5% 5.5% % 2021 growth on LFL* basis * LFL (like-for-like) excludes the impact of currency, acquisitions and disposals Investor conference call - 2021
Slide 8: Fragrance & Beauty: Sales growth of 10.1% on a LFL basis
Fragrance & Beauty Sales growth of 10.1% on a LFL basis In CHF million Fine Fragrance sales increased by 34.5% LFL • The sales performance was driven by a significant rebound on prestige fragrances and speciality retail • New business wins contributed to this strong performance bringing 1 564 overal
Slide 9: Taste & Wellbeing: Sales growth of 6.1% on a LFL basis
Taste & Wellbeing Sales growth of 6.1% on a LFL basis Sales in Europe increased by 1.7% LFL In CHF million • The mature markets of Germany, Italy, Spain and Sweden all achieved good single-digit sales growth • In the high growth markets there was excellent business momentum driven by double-digit gr
Slide 10: Tom Hallam, CFO: Operating performance
Tom Hallam Chief Financial Officer Operating performance
Slide 11: Performance highlights
2021 Half year results Performance highlights • Sales of CHF 3,373 million, up 7.9% on a like-for-like* basis and 4.7% in Swiss francs • EBITDA of CHF 809 million compared to CHF 734 million in 2020, an increase of 10.2% • Reported EBITDA margin of 24.0% compared to 22.8% in 2020, with the underlyin
Slide 12: Exchange rate development
2021 Half year results Exchange rate development 3% 3% 3% 0% -1% -4% -6% -6% -15% JPY USD GBP EUR SGD BRL CNY MXN IDR HY 2021 0.84 0.91 1.26 1.10 0.68 0.17 0.14 0.04 0.64 HY 2020 0.89 0.96 1.22 1.07 0.69 0.20 0.14 0.04 0.66 Investor conference call - 2021 Half year results 12
Slide 13: Operating performance
Operating performance 42.2% Gross margin 43.9% Sales of CHF 3,373 million, an increase of 7.9% on a like-for-like in % basis* and 4.7% in Swiss francs 809 Gross margin of 43.9%, compared to 42.2% in 2020, as a result of high operational leverage, positive mix effects, as well as continued cost disci
Slide 14: Operating performance: Fragrance & Beauty
Operating performance Fragrance & Beauty 333 EBITDA 375 Sales of CHF 1,564 million, an increase of 10.1% on a like-for- in CHF million like basis* and 7.4% in Swiss francs Sales 1 564 EBITDA of CHF 375 million, increased from CHF 333 million in in CHF million 2020, an increase of 12.5% GBS costs of
Slide 15: Operating performance: Taste & Wellbeing
Operating performance Taste & Wellbeing 401 EBITDA 434 Sales of CHF 1,809 million, an increase of 6.1% on a like-for-like in CHF million basis* and 2.5% in Swiss francs EBITDA of CHF 434 million, increased from CHF 401 million in Sales in CHF million 1 809 2020, an increase of 8.4% Acquisition and r
Slide 16: Net income: 14.3% of sales
Net income 14.3% of sales Net Income Income before tax of CHF 566 million compared to in CHF million CHF 480 million in 2020, an increase of 17.7% Net income of CHF 481 million, or 14.3% of sales, versus 481 CHF 413 million, or 12.8% of sales in 2020 Effective tax rate of 15%, compared to 14% in 202
Slide 17: Free cash flow: Sustained underlying performance
Free cash flow Sustained underlying performance Free cash flow in CHF million Free cash flow of CHF 186 million, compared to CHF 178 million in 2020, an increase of 4.5%. Free cash flow is 5.5% of sales compared to 5.5% in 2020 186 Operating cash flow of CHF 415 million, compared to CHF 389 million
Slide 18: Amortisation of intangible assets
Amortisation of intangible assets Total annual amortisation charge (in million CHF, estimated) 187 188 148 133 124 121 37 40 40 40 40 40 112 110 98 93 84 81 21 21 4 17 17 6 2020 2021E 2022E 2023E 2024E 2025E Pre Quest Quest Other acquisitions Other IT Investor conference call - 2021 Half year result
Slide 19: Balanced debt profile
Balanced debt profile Debt maturities and average borrowing rates The weighted average effective interest rate for the Group is 1.48%. Debt Maturity in CHF million 2.00 % Average interest rates in % 873 1.36 % 1.53 % 745 672 1.26 % 1.10 % 1.37 % 565 559 1.64 % 497 366 306 2.19 % 0.15 % 173 150 Cash
Slide 20: Gilles Andrier, CEO: 2025 Strategy, 2021 Outlook
Gilles Andrier Chief Executive Officer 2025 Strategy 2021 Outlook
Slide 21: Strategy 2025: Committed to Growth, with Purpose
Strategy 2025 Committed to Growth, with Purpose Creations Nature We create inspiring solutions We show our love for nature for happier, healthier lives GROWING through impactful actions TOGETHER WITH OUR CUSTOMERS People Communities We nurture a place where we We bring benefits to all all love to be
Slide 22: Strategy 2025: Performance ambitions
Strategy 2025 Performance ambitions Sales Growth Free Cash Flow Purpose ambitions 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 (LFL) i
Slide 23: 2021 Outlook: Key themes review
2021 Outlook Key themes review 2021 Outlook Focus on Operations Key Initiatives • H1 demonstrated a strong recovery in • Protecting and supporting all Givaudan • Continued integration of acquired areas of the business most affected by the personnel companies on to Givaudan’s operating COVID-19 pande
Slide 24: Q&A
Q&A Investor conference call - 2021 Half year results 24
Slide 25: Follow us on social media
Follow us on social media @givaudan Investor conference call - 2021 Half year results 25
Slide 26: 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