Givaudan reports solid H1 2026 sales of USD 4.7B amid currency and macro headwinds
However, like-for-like sales rose 3.6%.
SWITZERLAND – Givaudan has posted sales of CHF 3,799 million (USD 4.65 billion) in the first half of 2026, down 1.7% in Swiss franc terms from CHF 3,864 million (USD 4.73 billion) a year earlier.
The stronger Swiss franc weighed on the reported top line, but underlying demand remained solid across the business.
Fragrance & Beauty generated CHF 2.010 billion (USD 2.46 billion) in sales, up 6.5% like-for-like and 2.9% in Swiss francs, with fine fragrances and consumer products driving the division’s growth.
Taste & Wellbeing brought in CHF 1.789 billion (USD 2.19 billion), up 0.5% like-for-like but down 6.3% in Swiss francs due to currency effects.
Growth was balanced across regions and customer groups, with high-growth markets up 5.2% like-for-like and mature markets up 2.0%.
Christian Stammkoetter, CEO, stated, “We are pleased with our sustained solid financial performance in the first half of 2026. Despite ongoing geopolitical and macroeconomic challenges, our business continued to display good growth momentum and industry-leading profitability.”
“Once again, we see the strength of the natural hedges of the Group and the impact of the strong focus of the entire organisation in supporting the growth of our customers.”
On profitability, gross profit slipped to CHF 1,689 million (USD 2.07 billion) from CHF 1,702 million (USD 2.08 billion), although gross margin improved to 44.5% from 44.0%. EBITDA fell to CHF 820 million (USD 2.07 billion) from CHF 945 million (USD 1.16 billion), and the EBITDA margin declined to 21.6% from 24.5%.
Adjusted EBITDA was CHF 923 million (USD 1.13 billion), with a margin of 24.3% versus 25.2% in 2025.
The company recorded CHF 103 million (USD 126 billion) in non-recurring costs, mainly tied to litigation settlements and provisions, plus restructuring expenses and costs linked to competition authorities’ investigations into the fragrance industry.
Operating income dropped to CHF 635 million (USD 0.78 billion) from CHF 762 million (USD 0.93 billion), while the operating margin eased to 16.7% from 19.7%.
Net income for the period was CHF 475 million (USD 582 million), compared with CHF 592 million (USD 725 million) a year earlier, resulting in a net margin of 12.5% versus 15.3%.
Adjusted basic earnings per share came in at CHF 60.25 (USD 73.8), down from CHF 66.71 (USD 81.7).
Operating cash flow fell to CHF 184 million (USD 225 million) from CHF 248 million (USD 304 million), and adjusted free cash flow was CHF -119 million (USD -146 million), or -3.1% of sales, compared with -0.4% a year earlier.
This was mainly due to higher investments and temporary working capital effects, with net working capital rising to 30.8% of sales from 27.1%.
The balance sheet remained strong, though net debt rose to CHF 4,604 million (USD 5.64 billion) from CHF 3,678 million (USD 4503 million) at the end of December 2025, and the net debt-to-EBITDA ratio increased to 2.8.
In anticipation of IFRS 18, Givaudan updated several key performance metrics, replacing Comparable EBITDA with Adjusted EBITDA and revising Free Cash Flow to Adjusted Free Cash Flow.
At the strategic level, Givaudan said its 2030 plan, “Driving sustainable growth with customers,” will continue to guide its next five years, with a target of 4% to 6% average like-for-like sales growth and more than 12% average adjusted free cash flow over the period.
The company also said it aims to reduce scope 1, 2, and 3 greenhouse gas emissions in line with the SBTi Net-Zero Standard trajectory and to source all materials and services in ways that protect the environment and people by 2030.
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