Givaudan SA (GIVN) AI Stock Analysis

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Givaudan SA

(GIVN)

Rating:64Neutral

Price Target:

CHF3,881.00

▲(16.69% Upside)

Givaudan SA's overall stock score reflects strong financial performance and robust earnings growth, tempered by bearish technical indicators and a relatively high valuation. While the company exhibits impressive operational efficiency and growth potential, current market trends and valuation metrics suggest caution. The earnings call further underscored growth in key markets, albeit with some operational challenges.

Positive Factors

Earnings

Givaudan beat Q1 consensus organic growth expectations with +7.4% organic growth, mainly explained by Fragrance and Beauty, where Fine Fragrance showed ongoing high momentum.

Growth Trajectory

Givaudan states that the positive growth trajectory seen in Q1 has continued through Q2, mainly driven by volume growth.

Negative Factors

Customer Adoption Challenges

The transition to natural colours occasionally poses customer adoption challenges.

Regional Performance

Regionally, North America was weak with a -0.5% organic decline.

Givaudan SA (GIVN) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap

CHF30.64B

Dividend Yield2.1%

Average Volume (3M)16.67K

Price to Earnings (P/E)28.0

Beta (1Y)0.55

Revenue Growth5.93%

EPS Growth6.00%

CountryCH

Employees16,942

SectorConsumer Goods

Sector StrengthN/A

IndustryChemicals - Specialty

Share Statistics

EPS (TTM)63.85

Shares Outstanding9,233,586

10 Day Avg. Volume15,331

30 Day Avg. Volume16,667

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

CHF4,094.64

Price Target Upside23.11% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering14

Givaudan SA Business Overview & Revenue Model

Company DescriptionGivaudan SA, together with its subsidiaries, manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through in divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances, consumer products, and fragrance ingredients and active beauty products. The Taste & Wellbeing division provides beverages, such as carbonated soft drinks, juices, bottled waters, ready-to-drink products, alcoholic beverages, hot drinks, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks comprising rice crackers and cassava chips; savory and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. The company was founded in 1796 and is headquartered in Vernier, Switzerland.

How the Company Makes MoneyGivaudan generates revenue primarily through the sale of flavors and fragrances to manufacturers in the food, beverage, and consumer goods sectors. The company operates on a business-to-business (B2B) model, providing tailored solutions that meet specific customer needs, which often leads to long-term contracts and partnerships. Key revenue streams include the development of custom flavors and fragrances, as well as the sale of standardized products. Givaudan's strong research and development capabilities allow it to innovate and create unique formulations, enhancing its competitive edge. Additionally, strategic partnerships with major brands and companies in various industries help drive growth and expand its market presence, further contributing to its earnings.

Givaudan SA Earnings Call Summary

Earnings Call Date:Jul 22, 2025

(Q2-2025)

% Change Since: -13.32%|

Next Earnings Date:Jan 23, 2026

Earnings Call Sentiment Positive

The earnings call highlighted strong sales growth and record EBITDA margins, driven by impressive performance in Fine Fragrances and high-growth markets. However, challenges were noted in free cash flow, North American market volatility, and softer demand in Fragrance Ingredients.

Q2-2025 Updates

Positive Updates

Strong Sales Growth

The group recorded sales of CHF 3.864 billion in the first half of 2025, an increase of 6.3% on a like-for-like basis, driven mainly by volume growth.

Record Comparable EBITDA Margin

The comparable EBITDA amounted to CHF 973 million, leading to a record comparable EBITDA margin of 25.2%, up from 24.8% in 2024.

Fine Fragrances Double Growth

Fine Fragrances continued strong growth momentum at 18%, achieving almost as much sales in the first half of 2025 as for the entire year in 2019.

Strong Performance in High-Growth Markets

Key growth markets such as India, Brazil, the Middle East, and China contributed significantly to sales, with LatAm showing a 9.4% like-for-like growth.

Innovative Product Developments

Introduction of Myromi, Everzure Galdieria, and other innovative solutions to support customer needs and consumer trends.

Negative Updates

Slightly Negative Free Cash Flow

The free cash flow in the first half was slightly negative due to timing effects of capital expenditures and tax payments.

Volatility in North America

North America showed volatility, with only a 1.7% increase in like-for-like sales for the first half.

Softer Performance in Fragrance Ingredients

Fragrance Ingredients experienced a softer performance, reflecting an overall softer demand from the market.

Company Guidance

During the Givaudan 2025 Half Year Results Conference Call, CEO Gilles Andrier and CFO Stewart Harris highlighted the company's strong financial performance despite global challenges. The group reported sales of CHF 3.864 billion, marking a 6.3% increase on a like-for-like basis, and a 3.4% increase in Swiss francs. Fine Fragrances and high-growth markets, including India, Brazil, the Middle East, and China, drove significant growth. The Fragrance & Beauty division saw sales of CHF 1.955 billion, an 8.6% increase, while the Taste & Wellbeing division recorded CHF 1.909 billion in sales, a 4.1% rise. The EBITDA margin improved to 25.2%, with a net income of CHF 592 million. Despite a slightly negative free cash flow due to investment timing and tax payments, the company remains confident in achieving its midterm target of an average free cash flow greater than 12%. The conference also addressed ongoing strategic acquisitions and innovations, such as Myromi and Everzure Galdieria, which align with Givaudan's focus on sustainability and digitalization.

Givaudan SA Financial Statement Overview

Summary

Givaudan SA displays strong financial health with consistent revenue and profit growth, efficient cost management, and solid cash flow generation. The company's balance sheet is stable with a manageable debt level, and it efficiently utilizes its equity base to generate returns. Overall, the financial statements reflect a well-managed company with growth potential and a secure financial footing.

Income Statement

Very Positive

The income statement shows strong performance with consistent revenue growth, evident from a 7.2% increase from 2023 to 2024. Gross profit margin improved to 44.1%, and net profit margin increased to 14.7%, indicating better cost management. EBIT and EBITDA margins also improved, showcasing operational efficiency.

Balance Sheet

Positive

The balance sheet reflects a solid financial position with a debt-to-equity ratio of 1.04, which is manageable. Return on Equity improved to 23.8%, indicating effective utilization of shareholders' funds. The equity ratio is at 37.8%, showing a stable capital structure.

Cash Flow

Positive

Cash flow analysis reveals a robust free cash flow growth of 21.3% from 2023 to 2024, driven by strong operating cash flows. The operating cash flow to net income ratio is 1.49, suggesting healthy cash generation relative to profits. Free cash flow to net income ratio is at 1.22, indicating effective cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.41B	6.92B	7.12B	6.68B	6.32B
Gross Profit	3.27B	2.72B	2.63B	2.70B	2.50B
EBITDA	1.79B	1.45B	1.38B	1.44B	1.34B
Net Income	1.09B	893.00M	856.00M	821.00M	743.00M
Balance Sheet
Total Assets	12.10B	11.13B	11.51B	11.43B	10.66B
Cash, Cash Equivalents and Short-Term Investments	762.00M	608.00M	488.00M	278.00M	415.00M
Total Debt	4.75B	4.91B	5.00B	4.67B	4.45B
Total Liabilities	7.52B	7.13B	7.27B	7.49B	7.15B
Stockholders Equity	4.58B	3.99B	4.23B	3.93B	3.49B
Cash Flow
Free Cash Flow	1.33B	1.10B	588.00M	969.00M	857.00M
Operating Cash Flow	1.63B	1.37B	892.00M	1.23B	1.08B
Investing Cash Flow	-448.00M	-467.00M	-451.00M	-921.00M	-830.00M
Financing Cash Flow	-1.03B	-699.00M	-229.00M	-440.00M	-286.00M

Givaudan SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3326.00

Price Trends

50DMA

3767.44

Negative

100DMA

3843.13

Negative

200DMA

3861.73

Negative

Market Momentum

MACD

-126.75

Positive

RSI

18.56

Positive

STOCH

10.96

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:GIVN, the sentiment is Negative. The current price of 3326 is below the 20-day moving average (MA) of 3486.10, below the 50-day MA of 3767.44, and below the 200-day MA of 3861.73, indicating a bearish trend. The MACD of -126.75 indicates Positive momentum. The RSI at 18.56 is Positive, neither overbought nor oversold. The STOCH value of 10.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:GIVN.

Givaudan SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIKA	69 Neutral	CHF30.34B	24.80		1.90%	-1.05%	―
GIVN	64 Neutral	CHF30.64B	27.99		2.10%	5.93%	6.00%
LISN	64 Neutral	CHF26.59B	41.24		1.30%	7.37%	-5.49%
Sector *	63 Neutral	HK$13.39B	7.45	-9.21%	5.29%	10.56%	-123.09%
BARN	62 Neutral	CHF5.20B	36.13		3.08%	45.87%	-49.83%
CLZNF	―	$3.31B	25.35	5.38%	5.06%	―	―
EMSHF	―	$17.89B	34.31	25.54%	2.80%	―	―

* Consumer Goods Sector Average

Performance Comparison

CH:GIVN

Givaudan SA

3,326.00

-785.12

-19.10%

CH:SIKA

Sika AG

189.10

-64.61

-25.47%

CH:LISN

Chocoladefabriken Lindt & Spruengli AG

115,400.00

7,999.66

7.45%

CH:BARN

Barry Callebaut AG

940.50

-419.73

-30.86%

CLZNF

Clariant AG

10.24

-3.92

-27.68%

EMSHF

EMS-CHEMIE HOLDING AG

762.64

-28.84

-3.64%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2025