Givaudan Sa · SIX:GIVN
Givaudan Sa — H1 2024 Earnings Presentation
26 slides from Givaudan Sa's earnings presentation, Jul 23, 2024
Slide 1: 2024 Half year results
23 JULY 2024 2024 Half year results Conference call for Investors and Analysts
Slide 2: Sales performance
Sales performance Gilles Andrier Chief Executive Officer
Slide 3: Strong financial performance
2024 Half year results Strong financial performance • Sales of CHF 3,737 million, an increase of 12.5% on a like-for-like* basis and 5.7% in Swiss francs • Sales performance demonstrates the global strength of Givaudan’s business, with excellent growth across all business segments, geographies and c
Slide 4: Half year sales performance: strong growth across all markets
Half year sales performance Strong growth across all markets In CHF million HY 2023 HY 2024 3,737 3,535 1,826 1,863 1,911 1,672 Group Fragrance & Beauty Taste & Wellbeing 5.7% 9.2% 2.6% % 2024 growth in CHF 12.5% 15.3% 9.9% % 2024 growth on LFL* basis 2.4% 6.4% -0.9% % 2023 growth on LFL* basis * Li
Slide 5: Sales evolution by market
Sales evolution by market Excellent performance in high growth markets In CHF million HY 2023 HY 2024 1,954 2,015 1,722 1,581 Mature High growth 55% 54% 45% 46% % of total sales 6.0% 20.5% % 2024 growth on LFL* basis -2.6% 8.9% % 2023 growth on LFL* basis * Like-for-like: excludes the impact of curr
Slide 6: Sales evolution by region
Sales evolution by region Strong growth in LATAM, APAC & EAME In CHF million HY 2023 HY 2024 1,509 1,405 852 897 855 881 423 450 LATAM APAC NOAM EAME 6.5% 5.3% 2.9% 7.4% % 2024 growth in CHF 31.5% 11.4% 5.9% 11.4% % 2024 growth on LFL* basis 11.1% 3.2% -10.6% 8.5% % 2023 growth on LFL* basis * Like-
Slide 7: Fragrance & Beauty: sales growth of 15.3% on a LFL basis
Fragrance & Beauty Sales growth of 15.3% on a LFL* basis In CHF million Fine Fragrance sales increased by 14.9% LFL* 1,826 • Excellent growth against a strong comparable of 16.2% +9.2% • Strong contribution from existing business and new wins Consumer Product sales increased by 17.3% LFL* 1,672 • Do
Slide 8: Taste & Wellbeing: sales growth of 9.9% on a LFL basis
Taste & Wellbeing Sales growth of 9.9% on a LFL* basis In CHF million Sales by region 2023 2024 Sales Growth Sales Growth LFL* LFL* +2.6% 1,911 Europe 3.6% 5.5% 1,863 South Asia, Middle East and Africa 19.1% 12.5% North America -11.7% 4.5% Latin America 10.5% 32.6% Asia Pacific -5.0% 9.3% Sales Comm
Slide 9: Addressing customer needs and consumer trends
Addressing customer needs and consumer trends 2024 Half year innovation highlights Scentaurus™ Vanilla New ingredients for alternative dairy Increasing creative possibilities to bring long- Natural, proprietary ingredient that provides lasting freshness in fragrances creamy mouthfeel and body for bo
Slide 10: Operating performance
Operating performance Tom Hallam Chief Financial Officer
Slide 11: Performance highlights
2024 Half year results Performance highlights • Sales of CHF 3,737 million, an increase of 12.5% on a like-for-like* basis and 5.7% in Swiss francs • Reported EBITDA of CHF 906 million compared to CHF 763 million, with an EBITDA margin of 24.2% compared to 21.6% in 2023 • Comparable EBITDA margin of
Slide 12: Exchange rate development
Half year results Exchange rate development 4% 0% -3% -3% -3% -3% -6% -8% -13% JPY USD GBP EUR SGD BRL CNY MXN IDR HY 2024 0.58 0.89 1.13 0.96 0.66 0.17 12.34 5.21 0.56 HY 2023 0.67 0.91 1.13 0.99 0.68 0.18 13.16 5.02 0.61 Units 100 1 1 1 1 1 100 100 10,000 2024 Half year results - Givaudan Conferen
Slide 13: Operating performance: Group
Operating performance Group EBITDA in CHF million Gross margin of 44.1%, compared to 41.0% in 2023, driven by a higher cost absorption due to higher volumes as well as the margin 41.0% Gross margin in % 44.1% improvement measures taken under the Group’s Performance improvement programme initiated in
Slide 14: Operating performance: Fragrance & Beauty
Operating performance Fragrance & Beauty EBITDA in CHF million EBITDA of CHF 500 million, compared to CHF 383 million in 2023, an increase of 30.3% Acquisition and restructuring costs of CHF 14 million, compared to +30.3% 500 CHF 23 million in 2023. 383 EBITDA margin of 27.3% compared to 22.9% in 20
Slide 15: Operating performance: Taste & Wellbeing
Operating performance Taste & Wellbeing EBITDA in CHF million EBITDA of CHF 406 million, increased from CHF 380 million in 2023, an increase of 7.0% Continued increases in natural input costs were offset by price increases +7.0% Acquisition and restructuring costs of CHF 9 million, compared to 380 4
Slide 16: Net income: 15.7% of sales
Net income 15.7% of sales In CHF million Income before tax of CHF 700 million compared to CHF 516 million in 2023, an increase of 35.5% Net income of CHF 588 million, or 15.7% of sales, versus CHF 449 588 million, or 12.7% of sales in 2023 +30.9% Other financial income, net of expenses, were CHF 30
Slide 17: Free cash flow
Free cash flow Improvement driven by higher operating cash flow In CHF million Free cash flow of CHF 197 million, compared to CHF 104 million in 2023. Free cash flow is 5.3% of sales compared to 2.9% in 2023 Operating cash flow of CHF 427 million, compared to CHF 340 197 million in 2023, an increase
Slide 18: Balanced debt structure
Balanced debt structure Debt maturities Net debt to EBITDA 3.7 3.5 1018 987 3.2 3.1 3.0 2.9 2.9 2.9 653 679 646 603 479 300 150 Cash ST < 1 Y 1-2 Y 2-3 Y 4-5 Y 5-6 Y 6-7 Y 7-8 Y 9-10 Y FY 2020 HY 2021 FY 2021 HY 2022 FY 2022 HY 2023 FY 2023 HY 2024 • The weighted average effective interest rate for
Slide 19: 2025 Strategy and Outlook
2025 Strategy and Outlook Gilles Andrier Chief Executive Officer
Slide 20: 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 21: 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 22: 2024 Outlook: Key themes review
2024 Outlook Key themes review 2024 outlook Performance improvement programme Financial impact • Very well positioned with our • Sustained strong focus on operational • Costs of CHF 50 million expected capabilities and our 2025 strategy excellence and on review of the in 2024 • The natural hedges of
Slide 23: Q&A
Q&A
Slide 24: 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 25: Follow us on social media @givaudan
Follow us on social media @givaudan
Slide 26: Slide 26