ZURICH (Thomson Financial) - Givaudan AG said it sees raw material prices
rising by 1-2 pct in the fragrance division and 3-4 pct in the flavours division
in 2007 but reiterated its full-year outlook.
The Swiss fragrance and flavours maker also confirmed its 2008 guidance, but
a spokesman said it is not giving raw material price forecasts for the period as
yet.
The spokesman also said no negative surprises were expected from the
integration of Quest International, after analysts said the integration was in
its early stages, prompting a more cautious outlook.
Earlier today, Givaudan reported a nine-month sales growth of 41.1 pct to
3.105 bln sfr, roughly in line with analysts forecasts, and reiterated that the
integration of Quest Internatilnal, acquired last year in a 1.2 bln stg deal,
was well on track.
The group said it still sees synergies of 200 mln sfr by 2010 and
integration costs of 449 mln sfr, and that it aims to return to Givaudan's 2006
EBITDA margin level for each unit by 2010.
For 2007, Givaudan forecasts sales to grow ahead of the market, as well as
improved pro-forma profitability.
In 2008 sales might slow down as a result of streamlining activities, but
should return to a level above market growth in 2009, the company said.
johanna.treeck@thomson.com
jmt/jr
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