Givaudan SA (GIVN.VX) Friday reported a 4.9% rise in third-quarter sales, and repeated full-year goals of at least 5% sales growth in local currencies and an operating margin of 22.7%.

The Swiss manufacturer of flavors and ingredients for luxury perfumes like J'Adore by Dior and Armani Code said sales in the three months ended Sept. 31 rose to CHF1.08 billion Swiss francs ($1.11 billion), according to a calculation by Dow Jones Newswires, from CHF1.03 billion in the year-ago period. This missed analysts' expectations, which averaged CHF1.09 billion in a poll.

"For the fourth quarter 2010, Givaudan expects a continued good performance and is therefore confident of achieving its stated 2010 full year objectives," Givaudan said in a statement. The company issues full earnings for the half-year and full-year only.

Even with sales growth in the third quarter edging off the more than 10% posted in the first six months, Givaudan is all but guaranteed to reach its 5% sales goal in local currencies for the year. The company already said in August shareholders could expect a higher dividend than the CHF20.60 a share paid out in 2009. Shortly after that, Givaudan laid out a cost-savings plan to meet sales targets over the next five years. To do so, it will move production of savory flavors from Switzerland and the U.K. to Hungary, where it is investing CHF170 million in a new production site.

Over the next five years, Givaudan wants to expand sales by 4.5% to 5.5% annually, which is above market growth, estimated by the Swiss company between 2% and 3%.

The company repeated its pledge to return more than 60% of free cash flow to shareholders once debt it slashed.

Givaudan shares, which have gained 21% so far this year, outpacing a 8.1% rise in the Stoxx Europe 600 chemical index, closed at CHF1,004 Thursday.

Givaudan, which bought Dutch rival Quest three years ago, is the world's largest manufacturer of flavors and fragrances measured by sales. It is followed by International Flavors & Fragrances Inc. (IFF)--or IFF for short--and privately-owned Geneva-based Firmenich.

-By Katharina Bart, Dow Jones Newswires; +41 43 443 8043; katharina.bart@dowjones.com
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