FDBusiness.com

Swiss flavour and fragrance giant Givaudan has reported a 2.7% increase in sales in the first quarter of 2013, aided by strong gains in snacks and drinks – but the company still missed analyst estimates, on poor fine fragrance sales.

The company reported Q1 sales of CHF1.09bn (about €894m), while the average estimate of analysts surveyed by Bloomberg was CHF1.12bn. However, Givaudan reiterated its sales growth forecast of 4.5% to 5.5% for the year.

Sales in the Flavours division were C HF 571.8m (about €470m), a 3.7% increase on the previous quarter on a like-for-like basis, and a 1.9% increase in Swiss francs.

The company said sales grew in developing markets, including in Africa, China, India, Indonesia and Eastern Europe – and sales were up in mature markets in Western Europe and North America too. However, gains in mature markets were offset by declines in Australia, Japan and Korea, the company said.

“Growth by segments can be attributed to double digit gains in Snacks and strong performance in Beverages and Dairy,” it said.

Meanwhile, sales in the company’s fine fragrance division fell 5.5%, with the biggest declines in Europe and North America.

The fragrances division was aided by consumer goods sales, meaning an overall increase in the Fragrance division of 3.6% to C HF517.1m (€425m).