Half Year 2024 Givaudan SA Earnings Call Transcript
Key Points
- Givaudan SA (GVDBF) reported a strong performance in the first half of 2024 with sales reaching CHF3.7 billion, a growth of 12.5% on a like-for-like basis and 5.7% in Swiss francs.
- The company's EBITDA margin improved to 24.8% from 22.7% last year, driven by high volume growth and effective cost management.
- Net income increased by almost 31% to CHF588 million, showcasing strong profitability.
- The fragrance and beauty division saw a stellar 15.3% growth on a like-for-like basis, driven by strong demand in fine fragrances and consumer products.
- Givaudan SA (GVDBF) continues to benefit from its geographical balance, with high-growth markets representing 46% of total sales and growing at a rate of 20.5%.
- The taste and wellbeing division's EBITDA margin remains weaker compared to the fragrance and beauty division, despite volume growth and cost-saving measures.
- The company incurred costs of CHF23 million related to footprint optimization and a Competition Authority investigation in the fragrance industry.
- The effective tax rate increased to 16% in 2024 compared to 13% in June 2023, impacting net income.
- There is continued pressure on input costs, particularly in key natural ingredients, which may affect future profitability.
- The North American market in taste and wellbeing shows some softness in the out-of-home consumption segment, which could impact overall growth.
(audio in progress) [Byra], the Choruscall operator. (Operator Instructions) and the conference is being recorded. (Operator Instructions) The conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Gilles Andrier, CEO. Please go ahead.
Thank you. Dear ladies and gentlemen, welcome to our 2024 half year results conference Call. The company news on our half year results have been published earlier this morning on our website where you will also find the slides for today's presentation and the half year report. Tom Hallam and myself will take you through the presentation before we answer your questions at the end.
Now I'd like to start the presentations with the highlight and invite you to turn to page 3. And so before moving to any numbers, first thing first, and let me start with the last bullet first, as you have seen the announcement this morning, Tom Hallam has decided to retire and will hand over the CFO
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