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Givaudan SA (CH:GIVN)
:GIVN
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Givaudan SA
(GIVN)
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Rating:71Outperform
Price Target:
CHF3,467.00
▲(10.48% Upside)
The score is driven primarily by strong financial performance and supportive earnings-call guidance/cash-flow focus. These positives are tempered by weak technicals (below key moving averages with negative MACD) and a premium valuation (P/E 26.4) that is only partly offset by the ~2.23% dividend yield.
Positive Factors
Strong free cash flow generation
Sustained high free cash flow and strong cash conversion provide durable funding for dividends, buybacks, R&D and M&A. Consistent FCF above CHF 1bn cushions the business against cyclical input-cost swings and supports strategic investment without relying on equity issuance.
Leadership in Fragrance & Beauty
Market-leading Fragrance & Beauty growth, strong fine-fragrance momentum and targeted M&A broaden high-margin offerings. This segment leadership supports pricing power, product differentiation and long-term margin durability amid premiumisation and expanding beauty adjacencies.
Solid balance sheet and manageable leverage
A stable capital structure with manageable leverage and improved ROE gives financial flexibility for strategic investments and acquisitions. Improved leverage metrics support financing at attractive rates and reduce refinancing risk through economic cycles, aiding long-term resilience.
Negative Factors
Margin compression from costs and tariffs
Sustained input-cost inflation and tariff uncertainty create mechanical margin dilution that can persist until pricing fully offsets costs. Structural margin pressure shrinks operating leverage and may reduce long-term free cash flow and capacity for discretionary spend.
Competitive pressure in fragrance ingredients
Rising competition in specific fragrance ingredients from lower-cost producers can force price concessions or volume loss. Given the segment’s margin contribution, sustained competitive erosion could permanently weaken divisional profitability and require strategic repositioning or cost investment.
Regional and Taste & Wellbeing headwinds
Structural exposure to emerging-market volatility and localized demand issues in Taste & Wellbeing can depress growth consistency. Since the division represents a large revenue pool, persistent regional underperformance could cap group organic growth and constrain margin expansion over the medium term.
Givaudan SA (GIVN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF28.96B
Dividend Yield2.24%
Average Volume (3M)20.82K
Price to Earnings (P/E)26.5
Beta (1Y)0.63
Revenue Growth5.93%
EPS Growth6.00%
CountryUS
Employees16,942
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)59.06
Shares Outstanding9,233,586
10 Day Avg. Volume25,269
30 Day Avg. Volume20,823
Financial Highlights & Ratios
PEG Ratio1.52
Price to Book (P/B)7.99
Price to Sales (P/S)4.94
P/FCF Ratio27.46
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF3,746.00Price Target Upside19.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 its flavors and fragrances to a diverse clientele, including multinational companies in the food and beverage sector, as well as personal care and household product manufacturers. The company employs a B2B model, where it collaborates closely with clients to develop customized solutions that meet specific market needs. Key revenue streams include the sale of flavor compounds, fragrance compounds, and related services such as product development and sensory evaluation. Givaudan also benefits from strategic partnerships and collaborations with other companies, enabling it to enhance its product offerings and expand its market reach. The consistent demand for new and innovative flavors and fragrances, driven by consumer trends and preferences, further supports its revenue growth.
Givaudan SA Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive picture: Givaudan delivered solid like-for-like sales growth (5.1%), strong free cash flow (>CHF 1 billion), continued outperformance in Fragrance & Beauty (Fine Fragrances +18.3%) and successful delivery of the 2021–2025 strategic cycle with meaningful ESG and R&D milestones. Headwinds included modest margin compression (gross margin -0.6 ppt), localized weaknesses in Fragrance Ingredients and parts of Taste & Wellbeing (Mexico, some APAC markets), FX impacts from a strong Swiss franc, nonrecurring costs and tariff-related uncertainty. Overall, the strengths — healthy organic growth, robust cash generation, improved leverage and proven strategy execution — materially outweigh the manageable challenges reported.Q4-2025 Updates
Positive Updates
Strong Group Sales Growth
Group sales of CHF 7.472 billion in 2025, up 5.1% like-for-like (LFL) and +0.8% in Swiss francs versus prior year; growth achieved across markets and customer segments.
Robust Free Cash Flow and Shareholder Returns
Free cash flow of CHF 1,053 million (14.1% of sales), second consecutive year above CHF 1 billion; cumulative free cash flow since 2000 of CHF 13.9 billion; Board proposes dividend of CHF 72 per share (+2.9%), marking 25th consecutive dividend increase and total shareholder returns (dividends + buybacks) > CHF 9 billion.
High-Quality Profitability
Comparable EBITDA margin of 24.2% in 2025 (slightly below 24.5% in 2024) — still the second highest margin in the past 15 years; reported EBITDA CHF 1,751 million (local-currency EBITDA growth +4.5%).
Fragrance & Beauty Outperformance
Fragrance & Beauty sales CHF 3,830 million, +7.9% LFL; Fine Fragrances grew 18.3% LFL (virtually matching prior-year record), with Fine Fragrance business more than doubled versus 2019 on a LFL basis; Active Beauty now CHF 300 million of sales and entry into colour cosmetics via acquisition of b.kolor.
Taste & Wellbeing Resilience
Taste & Wellbeing sales CHF 3,642 million, +2.4% LFL against a very high prior-year comparable (>10% in 2024); division shows margin improvement to a comparable EBITDA margin of 21.7% (up from 21.3%).
Geographic Strength in High-Growth Markets
High-growth markets grew 8% in 2025 and now represent 49% of total sales; SAMEA, China, India and Brazil among strong contributors; EAME grew 7%, Asia Pacific +5% LFL.
Improved Leverage and Attractive Financing
Net debt of CHF 3.7 billion with weighted average interest rate of 1.94%; net debt-to-EBITDA improved to 2.1x from 2.3x in 2024, supporting M&A and strategic investment capacity.
Delivery on 2021–2025 Strategic Targets
Five-year results: average LFL growth of 6.8% (exceeding 4–5% target), comparable EBITDA average 22.9%, and average free cash flow >12% (12.5% achieved), indicating successful completion of the strategic cycle.
Material ESG and Innovation Milestones
Net-zero targets validated by SBTi; 50% absolute reduction in Scope 1 and 2 emissions vs 2015; 100% renewable electricity (achieved one year early); 87% of natural ingredients covered by Sourcing for Good; senior leadership diversity increased from 25% to 34% women; R&D investment approximately 8% of sales (~CHF 600 million).
Division-level Operating Strength
Fragrance & Beauty comparable EBITDA margin of 26.5% and EBITDA CHF 985 million (flat reported; +4.2% in local currency); Taste & Wellbeing comparable EBITDA margin improved to 21.7% with local-currency EBITDA growth of +4.8%.
Negative Updates
Slight Compression of Gross and EBITDA Margins
Gross margin decreased from 44.1% to 43.5% in 2025; comparable EBITDA margin declined to 24.2% from 24.5% in 2024, reflecting higher input costs, tariffs and competitive pressures in parts of the portfolio.
Fragrance Ingredients Weakness
Fragrance Ingredients sales declined due to increased competition from Chinese players on a specific ingredient; impact concentrated in a segment that represents under 10% of Fragrance & Beauty sales but pressured divisional margin (part of the reason F&B comparable EBITDA margin fell from 27.8% to 26.5%).
Reported EBITDA and EPS Slightly Lower in CHF
Reported EBITDA fell 0.8% to CHF 1,751 million (FX-driven); net income CHF 1,071 million with net margin 14.3% (down from 14.7% in 2024); basic EPS CHF 116.08 vs CHF 118.17 in 2024.
Free Cash Flow Margin Decline
Free cash flow as a percentage of sales decreased to 14.1% in 2025 from 15.6% in 2024, indicating slightly lower cash conversion despite absolute FCF staying above CHF 1 billion.
Regional and Segment Headwinds
Taste & Wellbeing experienced softness in some regions (Asia Pacific -0.8% LFL for the division, Latin America impacted by Mexico, and Q4 decline in T&W noted); Latin America growth moderated to 3.6% due to lower FX pricing and Mexico-specific issues.
Nonrecurring and Incident-Related Costs
Nonrecurring costs of CHF 39 million plus CHF 17 million of Louisville accident-related expenses; division-level acquisition, restructuring and project costs (Fragrance & Beauty CHF 31 million; Taste & Wellbeing CHF 8 million) weighed on comparable results.
Currency Headwinds from Strong Swiss Franc
Swiss franc strength reduced reported Swiss-franc sales growth (+0.8% reported vs +5.1% LFL) and contributed to the reported margin and EBITDA pressure despite local-currency improvements.
Tariff Uncertainty and Mechanical Dilution
Tariff effects and higher input costs created mechanical margin dilution in H2 2025; tariff outlook for 2026 remains uncertain and could require additional pricing actions to offset costs.
Slight Increase in Effective Tax Rate
Effective tax rate rose to 18% in 2025 from 17% in 2024, reflecting implementation effects of the OECD minimum tax project and modestly reducing net income.
Company Guidance
The company guided into a new 2026 year and 2030 strategic cycle targeting average like‑for‑like sales growth of 4–6% and maintaining industry‑leading free cash flow above 12% of sales by 2030, while for 2026 management expects continued momentum in Fragrance & Beauty, a temporary Taste & Wellbeing slowdown easing through H2 (a ~2–3 point H1/H2 split), only limited input‑cost inflation, uncertain tariff effects to be managed via pricing, and some ongoing nonrecurring costs; this outlook sits on a 2025 base of CHF 7.472bn sales (+5.1% LFL), comparable EBITDA margin 24.2%, net income CHF 1,071m (14.3% margin), free cash flow CHF 1,053m (14.1%), and net debt/EBITDA of 2.1x, with a proposed dividend of CHF 72 (+2.9%).Givaudan SA Financial Statement Overview
Summary
Strong operating performance and cash generation: income statement strength (revenue +7.2% YoY, improved gross and net margins) and robust cash flow (free cash flow +21.3% YoY; operating cash flow to net income 1.49). Balance sheet is solid with manageable leverage (debt-to-equity 1.04) and improved ROE (23.8%), though not pristine.Income Statement
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.61B | 7.41B | 6.92B | 7.12B | 6.68B | 6.32B |
| Gross Profit | 2.40B | 3.27B | 2.72B | 2.63B | 2.70B | 2.50B |
| EBITDA | 1.32B | 1.79B | 1.47B | 1.38B | 1.44B | 1.34B |
| Net Income | 798.00M | 1.09B | 893.00M | 856.00M | 821.00M | 743.00M |
Balance Sheet | ||||||
| Total Assets | 11.28B | 12.10B | 11.13B | 11.51B | 11.43B | 10.66B |
| Cash, Cash Equivalents and Short-Term Investments | 303.00M | 762.00M | 608.00M | 488.00M | 278.00M | 415.00M |
| Total Debt | 4.78B | 4.75B | 4.91B | 5.00B | 4.67B | 4.45B |
| Total Liabilities | 7.17B | 7.52B | 7.13B | 7.27B | 7.49B | 7.15B |
| Stockholders Equity | 4.11B | 4.58B | 3.99B | 4.23B | 3.93B | 3.49B |
Cash Flow | ||||||
| Free Cash Flow | 1.08B | 1.33B | 1.10B | 588.00M | 969.00M | 857.00M |
| Operating Cash Flow | 1.28B | 1.63B | 1.37B | 892.00M | 1.23B | 1.08B |
| Investing Cash Flow | -503.00M | -448.00M | -467.00M | -451.00M | -921.00M | -830.00M |
| Financing Cash Flow | -1.15B | -1.03B | -699.00M | -229.00M | -440.00M | -286.00M |
Givaudan SA Technical Analysis
Negative
3138.00
Price Trends
3226.14
Negative
3298.98
Negative
3547.03
Negative
Market Momentum
-18.01
Negative
43.23
Neutral
33.51
Neutral
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 3138 is below the 20-day moving average (MA) of 3159.65, below the 50-day MA of 3226.14, and below the 200-day MA of 3547.03, indicating a bearish trend. The MACD of -18.01 indicates Negative momentum. The RSI at 43.23 is Neutral, neither overbought nor oversold. The STOCH value of 33.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:GIVN.
Givaudan SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | CHF23.76B | 19.42 | ― | 2.23% | -1.05% | -1.46% | |
72 Outperform | CHF25.57B | 40.24 | ― | 1.29% | 7.37% | -5.49% | |
71 Outperform | CHF28.96B | 26.46 | ― | 2.24% | 5.93% | 6.00% | |
66 Neutral | CHF14.08B | 30.49 | 22.08% | 3.16% | -4.25% | -0.03% | |
62 Neutral | $2.40B | 21.17 | 5.38% | 5.97% | -2.40% | 38.08% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
54 Neutral | CHF7.22B | 38.85 | ― | 2.31% | 42.39% | -2.13% |
* Basic Materials Sector Average
CH:GIVN
Givaudan SA
3,138.00
-796.34
-20.24%
CH:SIKA
Sika AG
148.10
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CH:LISN
Chocoladefabriken Lindt & Spruengli AG
112,400.00
10,330.19
10.12%
CH:BARN
Barry Callebaut AG
1,317.00
322.86
32.48%
CH:CLN
Clariant AG
7.29
-2.68
-26.91%
CH:EMSN
EMS-CHEMIE HOLDING AG
602.00
-26.51
-4.22%
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.