Statement from Christian Sewing Regarding Q3 Results 2023
In the third quarter, Swiss-based flavours and fragrances company, Givaudan, reported significant financial growth. The company's net inflows into investment products reached 11 billion euros, marking a promising start to the final quarter of the year.
CEO Christian Sewing expressed gratitude for another excellent quarter, looking forward to moving forward with the team. The company increased its pre-tax profit by 7 percent year-on-year to 1.7 billion euros in the third quarter, demonstrating a steady financial trajectory.
Givaudan's strategic goals for 2025 and beyond are centred on sustainable value creation, growth with customers, and expanding its product portfolio. The company is actively pursuing these objectives by expanding and deepening strategic relationships with suppliers, start-ups, and partners to enhance collaboration and co-creation.
The company aims to maximize mature market opportunities while expanding leadership in high-growth markets, particularly China. Givaudan is also focusing on delivering ambitious financial growth by leveraging the expanded portfolio from recent acquisitions such as Amyris and DDW, emphasizing flavours, fragrances, naturals, delivery systems, and expanding into nutrition, food ingredients, and beauty.
In addition, the company is targeting growth in smaller, local, and regional brands alongside continued engagement with larger global customers. Pursuing innovation and sustainability aligned with its purpose of “creating for happier, healthier lives with love for nature” is a key focus area.
The company's 2025 strategy is a five-year roadmap focused on sustainable value creation for all stakeholders by growing together with customers and responding to global consumption trends.
Regarding current performance, Givaudan has successfully integrated 16 acquisitions since 2014, which supports a broader and diversified product offering and market reach. The company is actively investing in capabilities such as the fragrance encapsulation center in Singapore to support innovation and market expansion.
New deposits in the third quarter reached 18 billion euros, and the company's return on tangible equity (RoTE) was 7.3 percent. The company has also reduced risk-weighted assets by around 10 billion euros through optimization measures.
The Corporate Bank increased revenues by 21 percent year-on-year, and adjusted costs fell by 8 percent year-on-year in Asset Management. The number of transactions with multinational corporations grew by around 40 percent year-on-year in the first nine months.
Adjusted for non-operating costs and bank levies apportioned equally across the year, the RoTE would have been nearly 9 percent. The company plans to increase capital distributions to shareholders beyond the 8 billion euros previously announced to pay out by 2025.
The past few months have been marked by natural disasters such as an earthquake in Morocco and a flood in Libya, as well as geopolitical conflicts. The company strongly condemns the attacks on Israel two and a half weeks ago and expresses thoughts with colleagues in Israel and sympathy with all innocent victims in the region.
In conclusion, Givaudan's strong financial performance in Q3, coupled with its strategic focus on growth, innovation, and sustainability, positions the company well for the future. The company's strategic goals for 2025 and beyond are designed to create sustainable value for all stakeholders, respond to global consumption trends, and position Givaudan as a leader in the flavours, fragrances, and related industries.
- Givaudan's Asset Management division, a key part of its business, saw adjusted costs fall by 8 percent year-on-year in the third quarter, leading to increased revenues by 21 percent year-on-year.
- In line with its 2025 strategy, Givaudan is actively focusing on finance growth by leveraging acquisitions such as Amyris and DDW, with an aim to expand into nutrition, food ingredients, and beauty.
