VERNIER (dpa-AFX) - Givaudan Group (GVDBF.PK), a Swiss manufacturer of fragrance and flavor products, reported that its income attributable to equity holders of the parent for 2018 decreased to 663 million Swiss francs from 720 million Swiss francs in 2017. Basic earnings per share were 71.92 francs compared to 78.18 francs for the same period in 2017.
The operating income was 883 million francs compared to 869 million francs, an increase of 1.7% versus 2017. When measured in local currency terms, the operating income increased by 0.1%. The operating margin was 16.0% in 2018 compared to 17.2% in 2017.
Annual sales were 5.53 billion francs, an increase of 5.6% on a like-for-like basis and 9.4% in Swiss francs when compared to 2017.
The company noted that it is now in the implementation phase of Givaudan Business Solutions (GBS), a global organisation providing best-in-class processes and services.
The progressive implementation of Givaudan Business Solutions is fully in line with the plan and has delivered the first financial benefits of 20 million francs in 2018.
At the Annual General Meeting on 28 March 2019, Givaudan's Board of Directors will propose a cash dividend of 60.00 francs per share for the financial year 2018, an increase of 3.4% versus 2017.
The company noted that its 2020 ambition is to create further value through profitable, responsible growth. Building on the first two years of this strategic cycle in 2016 and 2017, Givaudan's 2020 ambition is built on the three strategic pillars of 'growing with our customers', 'delivering with excellence', and 'partnering for shared success'.
As part of the Company's 2020 strategy, Givaudan also seeks to create value through targeted acquisitions, which complement existing capabilities in providing winning solutions for its customers. Since 2014, Givaudan has announced nine acquisitions, which are fully in line with the growth pillars within the Company's 2020 strategy.
The company said,'Ambitious financial targets are a fundamental part of Givaudan's strategy. We aim to outpace the market with 4-5% sales growth and a free cash flow of 12-17% of sales, both measured as an average over the five-year period of our strategy cycle. It is Givaudan's intention to maintain its current dividend practice as part of this ambition.'
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