Gilles Andrier, chief executive officer, explained, “Our 2011 results are a convincing demonstration of the continued value we bring to our customers. The business achieved a strong sales momentum in a tough environment and a significant profit improvement in the second half of the year. We are well on track for 2012 and to deliver on our mid-term targets.”
The Flavor Division accounted for sales of 2.08 billion francs ($3.01 billion), a growth of 5.7% in local currencies and a decline of 7.5% in francs.
Sales in developing markets increased at near double-digit growth over 2010, while the mature markets delivered above-average growth despite the unfavorable economic conditions. All major segments grew favorably with beverage, savory and snacks leading the way.
The strategic pillars in the Flavor Division achieved strong growth with emphasis on expanding the developing markets, implementing key Health and Wellness programs, gaining market share with targeted customers, and providing strategic solutions to the Foodservice industry.
EBITDA decreased to 407 million francs ($438 million) from 489 million francs ($526 million) last year.
Operating income declined to 239 million francs ($257 million) from 317 million francs ($341 million) last year. The operating margin on a comparable basis decreased to 12.9% from 15.9% reported last year.
Sales in Asia Pacific achieved a 10.5% growth in local currencies, a solid performance on top of a double-digit prior-year comparables. The developing markets of China, India and Vietnam recorded double digit gains while Indonesia delivered a high single-digit increase. Sales in the mature markets escalated as well, with solid growth in Japan and Oceania.
To support growth momentum in India, Givaudan reported it is working to expand the technical centre that will house expanded flavor creation, application and innovation capabilities to service the fast growing flavor and taste opportunities in the Indian marketplace.
From the February 17, 2012, Prepared Foods' Daily News.