PARIS — Firmenich reported sales in its most recent fiscal year increased 10.2 percent, propelled by a rebound in its fine fragrance business and acquisitions.
The world’s largest privately owned fragrance and flavors supplier, based in Geneva, posted sales of 4.27 billion Swiss francs, or $4.67 billion, in the year ended June 30. On an organic basis at constant currency, sales increased 4.7 percent year-over-year but including acquisitions, revenues gained 16.8 percent.
In the second half of its fiscal year, Firmenich witnessed an acceleration of sales, thanks to ongoing momentum from its two divisions and fine fragrance’s rebound. Sales from the group’s fine fragrance activity gained 39 percent on a like-for-like basis.
Givaudan, another major Swiss fragrance and flavors supplier, reported in July that its fine fragrance business had rebounded in the second quarter, after being hard-hit by the coronavirus pandemic, as well.
Makers and suppliers of fine fragrances saw business grind to a halt at the beginning of the coronavirus crisis, and it took months to start picking up steam again.
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At Firmenich for the year, earnings before interest, taxes, depreciation and amortization, or EBITDA, were 874 million euros, up 6.2 percent.
Firmenich saw double-digit sales growth, in organic terms at constant currency, in its key markets: North America, China and India.
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“Throughout the year, we have continued to invest to position ourselves for the future, and I believe we are well-placed to capture the opportunities that will arise after the crisis,” said Patrick Firmenich, chairman of the company’s board, in a statement.
In like-for-like terms, the group’s Perfumery and Ingredients division’s sales were up 4.4 percent, while its Taste and Beyond division’s sales advanced 5.2 percent.
Firmenich’s free cash flow increased 12.5 percent to 511 million Swiss francs.
In May 2020, the company finalized its acquisition of Les Dérivés Résiniques et Terpénique, or DRT, which creates renewable, sustainable and naturally gleaned ingredients from terpenes and rosin derivatives, mostly from pine trees.
“The transformational acquisition of DRT, a leader in naturally derived renewable ingredients, has enabled Firmenich to build the world’s leading innovation platform for renewable, biodegradable and sustainable ingredients for fragrances, flavors and nutrition,” said Firmenich. “This in turn has allowed us to meet our customers’ growing demand for sustainable products, a key long-term growth driver for our industry.”
The company noted that during the second half of its fiscal year, DRT had a significant rebound in revenues and improving profitability.
“We are confident in the strategic fit of this acquisition and in the longterm competitive advantage provided by our unique and proprietary access to renewable ingredients,” said Firmenich.
For more, see:
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Givaudan’s Fragrance Business Rebounds in First Half
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