ZURICH (Reuters) - Swiss fragrance and flavour maker Givaudan confirmed its mid-term targets after like-for-like sales rose 7.7% in the first quarter, helped by strong demand for its fragrance and beauty products.
During the pandemic, Givaudan has been benefiting from strong demand for household items like soap, detergent or snacks it makes ingredients for, while its business with foods for out-of-home consumption and perfumes took a hit last year.
Sales at its fragrance and beauty business rose 9.9%, helped by a recovery in its perfume and active beauty business, while its taste and wellbeing unit was up by 5.8%, Givaudan said in a statement on Tuesday.
High-growth markets in Latin America and Asia Pacific were the main drivers, Givaudan said.
"We have seen continued strong demand across the parts of our business which are less impacted by the COVID‑19 pandemic and improving conditions in the parts of our portfolio which have been more affected," Chief Executive Gilles Andrier said in the statement.
Sales linked to out-of-home consumption were still affected by the pandemic, but "to a lesser extent compared to 2020, as restrictions in relation to out of home food and beverage consumption started to be lifted in certain markets," Givaudan said.
For the five-year period to 2025, Givaudan confirmed its target for like-for-like organic sales growth of 4-5% on average per year.
Givaudan competes with Germany's Symrise that reports first-quarter sales on April 28.