(Reuters) – Swiss fragrance and flavor maker Givaudan posted a better-than-expected half-year profit on Thursday on the back of strong performance in its fragrance business and effective cost management, while continuing to raise prices.
Earnings before interest, tax, depreciation and amortization (Ebitda) for the first half fell 6.6% to 763 million Swiss francs (794.20 million euros), while analysts expected an average of 751 million francs, according to a consensus provided by the group.
Givaudan, which has suffered from a drop in demand for its perfumes, creams and flavours, has still managed to pass on higher production costs to customers.
The Swiss perfumer’s sales rose 2.4% to 3.74 billion Swiss francs on a like-for-like basis in the first half, which was, however, below analysts’ forecasts which had forecast growth of 3.4%, as well as the company’s medium-term objective, which reiterated an average organic sales growth of 4 to 5% per year.
Sales of the Perfumery and Beauty division, which includes sun protection products and mattifying products, increased by 6.4%.
(Report Jagoda Darlak and Matteo Allievi; Diana Mandiá, edited by Kate Entringer)
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