(Updating with impact of Quest integration, segments and main market
performances)
GENEVA (Thomson Financial) - Givaudan SA. reported a 27.2 percent rise in
first quarter sales to 1.053 billion Swiss francs, in line with expectations,
with sales boosted by the integration of Quest International.
On a comparable basis -- as if the business, which had been acquired from
ICI Plc. at the end of 2006, had already been consolidated since Jan 1 -- sales
grew by 1.9 pct, the speciality chemicals group said.
Analysts surveyed by Thomson Financial News had forecast Givaudan's sales to
reach 1.055 billion francs on average.
Givaudan said the integration of Quest International is progressing well and
reconfirmed forecasts for cost savings and integration costs, saying it is on
track to generate 200 million francs of synergies and will reach pre-acquisition
margin levels by 2010.
For 2008, it expects to generate 130 million francs of integration
synergies.
In parallel, full year sales are expected to grow in line with the market
when excluding the impact of the previously announced 114 million francs
portfolio streamlining and business divestiture.
Sales at Givaudan's fragrance division grew 30.6 percent to 489.1 million
francs but were down 7.4 percent on a comparable basis.
Fragrance sales declined in both Europe and North America after a strong
year earlier period, the company said.
But consumer products delivered good growth, driven in particular by sales
growth in China, India, Vietnam and Japan, it added.
The flavour division recorded sales of 563.7 million francs, an increase of
24.3 percent in local currencies, and up 4 percent on a comparable basis.
Sales in the Asia Pacific region showed solid growth and were also strong in
Europe, Africa and the Middle East, Givaudan said.
Sales in North America continued the position momentum, while sales in Latin
America, especially Brazil, were weak, it added.
andrew.ge.thompson@thomson.com
at/hjp/at/vlb
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