(updating with additional details on integration outlook, sales on pro forma
basis, divisional performance, pro forma EBITDA)
ZURICH (Thomson Financial) - Givaudan AG reported full-year net profit of 94
mln sfr, down from 412 mln in the same period last year.
The group's bottom line was hit by 328 mln sfr in integration costs and
amortisation of acquisition-related intangible assets as well as a one-off,
non-cash tax adjustment of 28 mln sfr.
Amid uncertainty regarding the integration costs of Quest, analyst forecasts
had ranged widely, coming in at 106-204 mln sfr or 159 mln sfr on average.
The Swiss fragrance and flavour maker said it will propose a dividend of
19.50 sfr, up from 18.80 sfr in 2006.
For 2008, Givaudan expects its sales to grow in line with the market,
excluding the ongoing product streamlining and the divestiture of the St. Louis
facility in the USA.
Fresh streamlining activities and the planned divestiture of St. Louis are
expected to amount to 114 mln in savings.
Looking further ahead, Givaudan said it is well positioned to achieve
above-market growth from 2009 and to reach pre-acquisition margin levels by
2010.
Givaudan also said that the integration of Quest, which the group bought in
a 1.2 bln stg deal in March, was running ahead of schedule with some 50 mln sfr
in savings already achieved.
It also showed itself confident of meeting the 200 mln sfr acquisition
related savings target, while keeping integration costs at 440 mln sfr.
In 2007, sales reached 4.132 bln sfr, up 42.2 pct year-on-year, but falling
slightly short of analyst forecasts of 4.151-4.190 bln sfr, or 4.170 bln on
average.
On a pro forma basis -- which reflects the combined activity of Givaudan and
Quest and assumes that the acquisition had taken place on Jan 1, 2006 - and
excluding flavour portfolio streamlining, sales increased by 4.0 pct.
The fragrance division recorded sales of 1.899 bln sfr, which represents a
growth of 55.3 pct, or in pro forma terms, a growth of 4.2 pct.
The above-market growth was driven by a strong performance of the consumer
products segment, Givaudan added.
The flavour division reported sales of 2.233 bln sfr, representing a growth
32.4 pct or in pro forma terms.
EBIT for the period dropped to 322 mln sfr form 514 mln in 2006. However,
EBITDA in pro forma comparable terms 911 mln, resulting in a margin improvement
to 20.9 pct from 19.7 pct, Givaudan said.
johanna.treeck@thomson.com
jmt/jrr/jmt/ejp
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