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Givaudan SA (CH:GIVN)
:GIVN
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Givaudan SA
(GIVN)
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Rating:72Outperform
Price Target:
CHF3,797.00
â–²(14.54% Upside)
Givaudan SA's overall stock score reflects its strong financial performance and strategic growth initiatives, particularly in the Fragrance & Beauty segment. However, technical indicators suggest potential bearish momentum, and valuation metrics indicate the stock may be overvalued. The earnings call provided a balanced view with both positive growth highlights and challenges in certain regions, contributing to a moderate overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.
Innovation and Sustainability
Investments in innovation and sustainability enhance Givaudan's competitive edge and align with global trends, fostering future growth.
Fragrance & Beauty Segment Growth
Strong growth in the Fragrance & Beauty segment reflects successful product offerings and market positioning, driving overall company performance.
Negative Factors
Negative Free Cash Flow
Negative free cash flow can constrain financial flexibility, affecting the company's ability to invest in growth opportunities and manage debt.
Challenges in Southeast Asia
Slower growth in Southeast Asia may limit regional revenue expansion, impacting overall growth potential in emerging markets.
Fragrance Ingredients Segment Decline
Decline in Fragrance Ingredients suggests challenges in maintaining demand, potentially affecting segment profitability and market share.
Givaudan SA (GIVN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF30.59B
Dividend Yield2.11%
Average Volume (3M)18.30K
Price to Earnings (P/E)28.0
Beta (1Y)0.57
Revenue Growth5.93%
EPS Growth6.00%
CountryCH
Employees16,942
SectorConsumer Defensive
Sector Strength42
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)63.85
Shares Outstanding9,233,586
10 Day Avg. Volume19,342
30 Day Avg. Volume18,305
Financial Highlights & Ratios
PEG Ratio1.52
Price to Book (P/B)7.99
Price to Sales (P/S)4.94
P/FCF Ratio27.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF4,068.82Price Target Upside22.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
Givaudan SA Business Overview & Revenue Model
Company DescriptionGivaudan SA, together with its subsidiaries, manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through in divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances, consumer products, and fragrance ingredients and active beauty products. The Taste & Wellbeing division provides beverages, such as carbonated soft drinks, juices, bottled waters, ready-to-drink products, alcoholic beverages, hot drinks, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks comprising rice crackers and cassava chips; savory and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. The company was founded in 1796 and is headquartered in Vernier, Switzerland.
How the Company Makes MoneyGivaudan generates revenue primarily through the sale of flavors and fragrances to manufacturers in the food, beverage, and consumer goods sectors. The company operates on a business-to-business (B2B) model, providing tailored solutions that meet specific customer needs, which often leads to long-term contracts and partnerships. Key revenue streams include the development of custom flavors and fragrances, as well as the sale of standardized products. Givaudan's strong research and development capabilities allow it to innovate and create unique formulations, enhancing its competitive edge. Additionally, strategic partnerships with major brands and companies in various industries help drive growth and expand its market presence, further contributing to its earnings.
Givaudan SA Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Jan 23, 2026
Earnings Call Sentiment Neutral
The earnings call presented a strong financial performance with significant growth in key segments. However, challenges such as negative free cash flow and slower growth in specific regions were noted. The company's innovation and strategic initiatives are positive, but market volatility and softer demand in certain areas temper the overall sentiment.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Givaudan recorded sales of CHF 3.864 billion, an increase of 6.3% on a like-for-like basis. The comparable EBITDA margin reached a record 25.2%, up from 24.8% in 2024.
Fragrance & Beauty Segment Growth
Fragrance & Beauty sales increased by 8.6% on a like-for-like basis, with Fine Fragrances showing an impressive growth momentum at 18%.
Taste & Wellbeing Division Performance
Sales for Taste & Wellbeing amounted to CHF 1.909 billion, up 4.1% on a like-for-like basis, with SAMEA showing a growth of 12.7%.
Innovation and Sustainability
Key innovations include Myromi, an AI tool for fragrance creation, and Everzure Galdieria, a sustainable color solution approved by the FDA.
Debt Management
Net debt to EBITDA ratio improved to 2.5x, with a weighted average interest rate of 1.9%.
Negative Updates
Negative Free Cash Flow
The free cash flow for the first half was slightly negative due to timing effects of capital expenditures and tax payments.
Challenges in Southeast Asia
Asia Pacific experienced modest growth of 2.1% like-for-like, with high comparables in markets like Indonesia and Thailand.
Fragrance Ingredients Segment Decline
The Fragrance Ingredients experienced a softer performance, reflecting an overall softer demand from the market.
U.S. Market Volatility
North America showed volatility, though it improved to a 1.7% increase in like-for-like for the first half.
Company Guidance
During the Givaudan 2025 Half Year Results Conference Call, CEO Gilles Andrier and CFO Stewart Harris provided comprehensive guidance on the company's performance metrics. Givaudan reported sales of CHF 3.864 billion, marking a 6.3% increase on a like-for-like basis and a 3.4% rise in Swiss francs. The company's comparable EBITDA reached CHF 973 million, resulting in a record EBITDA margin of 25.2%, up from 24.8% in 2024. Net income was CHF 592 million, slightly higher than the CHF 588 million recorded the previous year. However, the free cash flow was slightly negative due to timing effects of capital expenditures and tax payments, although the company remains confident in achieving its midterm target of an average free cash flow greater than 12% for the strategic cycle ending in 2025. Key growth areas included Fine Fragrances and high-growth markets like India and Brazil, while sales in mature markets grew by nearly 3%. The company also emphasized its commitment to innovation and sustainability, highlighting new products and technologies in fragrance and beauty segments.Givaudan SA Financial Statement Overview
Summary
Givaudan SA displays strong financial health with consistent revenue and profit growth, efficient cost management, and solid cash flow generation. The company's balance sheet is stable with a manageable debt level, and it efficiently utilizes its equity base to generate returns. Overall, the financial statements reflect a well-managed company with growth potential and a secure financial footing.Income Statement
The income statement shows strong performance with consistent revenue growth, evident from a 7.2% increase from 2023 to 2024. Gross profit margin improved to 44.1%, and net profit margin increased to 14.7%, indicating better cost management. EBIT and EBITDA margins also improved, showcasing operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a solid financial position with a debt-to-equity ratio of 1.04, which is manageable. Return on Equity improved to 23.8%, indicating effective utilization of shareholders' funds. The equity ratio is at 37.8%, showing a stable capital structure.78
Positive
Cash Flow
Cash flow analysis reveals a robust free cash flow growth of 21.3% from 2023 to 2024, driven by strong operating cash flows. The operating cash flow to net income ratio is 1.49, suggesting healthy cash generation relative to profits. Free cash flow to net income ratio is at 1.22, indicating effective cash management.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.61B | 7.41B | 6.92B | 7.12B | 6.68B | 6.32B |
| Gross Profit | 2.40B | 3.27B | 2.72B | 2.63B | 2.70B | 2.50B |
| EBITDA | 1.32B | 1.79B | 1.45B | 1.38B | 1.44B | 1.34B |
| Net Income | 798.00M | 1.09B | 893.00M | 856.00M | 821.00M | 743.00M |
Balance Sheet | ||||||
| Total Assets | 11.28B | 12.10B | 11.13B | 11.51B | 11.43B | 10.66B |
| Cash, Cash Equivalents and Short-Term Investments | 303.00M | 762.00M | 608.00M | 488.00M | 278.00M | 415.00M |
| Total Debt | 4.78B | 4.75B | 4.91B | 5.00B | 4.67B | 4.45B |
| Total Liabilities | 7.17B | 7.52B | 7.13B | 7.27B | 7.49B | 7.15B |
| Stockholders Equity | 4.11B | 4.58B | 3.99B | 4.23B | 3.93B | 3.49B |
Cash Flow | ||||||
| Free Cash Flow | 1.08B | 1.33B | 1.10B | 588.00M | 969.00M | 857.00M |
| Operating Cash Flow | 1.28B | 1.63B | 1.37B | 892.00M | 1.23B | 1.08B |
| Investing Cash Flow | -503.00M | -448.00M | -467.00M | -451.00M | -921.00M | -830.00M |
| Financing Cash Flow | -1.15B | -1.03B | -699.00M | -229.00M | -440.00M | -286.00M |
Givaudan SA Technical Analysis
Negative
3315.00
Price Trends
3473.94
Negative
3752.01
Negative
3805.27
Negative
Market Momentum
-37.77
Positive
35.87
Neutral
6.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:GIVN, the sentiment is Negative. The current price of 3315 is below the 20-day moving average (MA) of 3405.35, below the 50-day MA of 3473.94, and below the 200-day MA of 3805.27, indicating a bearish trend. The MACD of -37.77 indicates Positive momentum. The RSI at 35.87 is Neutral, neither overbought nor oversold. The STOCH value of 6.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:GIVN.
Givaudan SA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | 28.57B | 44.03 | 13.89% | 1.22% | 7.37% | -5.49% | |
72 Outperform | CHF30.59B | 27.95 | 2.11% | 5.93% | 6.00% | ||
70 Outperform | 28.88B | 23.61 | 17.71% | 2.00% | -1.05% | 0.00% | |
64 Neutral | 5.81B | 40.37 | 6.68% | 2.74% | 45.87% | -49.83% | |
64 Neutral | 2.47B | 21.78 | 10.45% | 5.60% | -2.40% | 38.08% | |
64 Neutral | 13.52B | 29.27 | 25.11% | 2.98% | -4.25% | -0.03% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
CH:GIVN
Givaudan SA
3,315.00
-1,140.84
-25.60%
CH:SIKA
Sika AG
180.00
-85.62
-32.23%
CH:LISN
Chocoladefabriken Lindt & Spruengli AG
123,000.00
17,771.35
16.89%
CH:BARN
Barry Callebaut AG
1,060.00
-455.38
-30.05%
CLZNF
Clariant AG
9.50
-3.86
-28.89%
EMSHF
EMS-CHEMIE HOLDING AG
727.62
-43.28
-5.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.