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Givaudan SA (GVDNY)
OTHER OTC:GVDNY
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Givaudan SA
(OTC:GVDNY)
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Rating:77Outperform
Price Target:
$93.00
▲(12.39% Upside)
The score is driven primarily by strong financial performance (healthy margins and strong free-cash-flow growth/conversion) and a constructive earnings outlook with clear long-term targets and continued high cash generation. The rating is moderated by a relatively expensive valuation (P/E ~29.8) and mixed technicals, with overbought near-term signals and the stock still below longer-term moving averages.
Positive Factors
Free cash flow generation
Sustained, high free cash flow and improving conversion provide long-term financial flexibility: supports continued R&D, dividend growth, debt reduction and selective M&A. A reliably strong FCF base (>12% target) reduces cyclicality risk and funds strategic investment without reliance on external financing.
High profitability margins
Robust gross and EBITDA margins reflect value-added, differentiated products and pricing power in flavors & fragrances. High margins underpin durable operating cash conversion, fund sustained R&D and shareholder returns, and create a buffer versus lower-margin competitors during cost cycles.
Clear long-term targets & R&D spend
Explicit 2030 financial targets combined with sustained ~8% of sales R&D commitment indicate disciplined strategy and pipeline renewal. High, consistent R&D investment supports product differentiation, raises technical barriers, and helps secure long-term customer relationships across industries and geographies.
Negative Factors
Input-cost and tariff pressure
Persistent input-cost increases and tariff exposure can structurally compress gross margins. If cost inflation endures, Givaudan may face trade-offs: pass-through pricing that risks volumes or margin absorption that reduces profitability, limiting room for reinvestment and shareholder returns over multiple quarters.
Competition in fragrance ingredients
Heightened competition from lower-cost Chinese producers in specific fragrance ingredients presents structural market-share and margin risk in that niche. Defending positions may require price concessions or additional investment in differentiation, which can weigh on segment growth and profitability over time.
Ongoing investigations & one-off costs
Ongoing regulatory and investigation-related costs create enduring uncertainty and potential penalties or remedial requirements. Beyond immediate charges, investigations can increase compliance costs, constrain M&A options and distract management, posing a multi-period governance and financial risk if unresolved.
Givaudan SA (GVDNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.68B
Dividend Yield1.96%
Average Volume (3M)14.90K
Price to Earnings (P/E)28.4
Beta (1Y)0.13
Revenue Growth8.46%
EPS Growth8.59%
CountryUS
Employees16,942
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)N/A
Shares Outstanding461,700,000
10 Day Avg. Volume6,253
30 Day Avg. Volume14,902
Financial Highlights & Ratios
PEG Ratio1.51
Price to Book (P/B)7.96
Price to Sales (P/S)4.92
P/FCF Ratio27.36
Enterprise Value/Market Cap0.90
Enterprise Value/Revenue4.25
Enterprise Value/Gross Profit9.64
Enterprise Value/Ebitda17.52
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 flavor and fragrance products. The Flavors division accounts for a significant portion of its earnings by providing custom flavors for food and beverage manufacturers, while the Fragrances division generates income through the development of scent formulations for personal care and home products. The company employs a value-added approach, often engaging in long-term partnerships with clients to develop tailored solutions, which leads to stable and recurring revenue streams. Additionally, Givaudan invests in research and development to innovate and stay ahead in a competitive market, allowing it to charge premium prices for its specialized products. Strategic acquisitions also play a role in expanding its product offerings and market reach, further enhancing its revenue potential.
Givaudan SA Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call presented a largely positive picture: solid like-for-like sales growth (5.1%), record-strength in Fragrance & Beauty (including Fine Fragrances +18.3%), strong cash generation (CHF 1.05bn FCF) and clear 5-year strategic delivery with ambitious 2030 targets and material ESG progress. Headwinds—modest margin and gross-margin pressure from input costs/tariffs, isolated weakness in Fragrance Ingredients, Taste & Wellbeing near-term softness (including a Q4 decline), FX and some one-off investigation-related costs—are notable but limited in scope relative to the company’s overall financial strength, cash generation and strategic progress.Q4-2025 Updates
Positive Updates
Strong Group Sales Growth
Reported sales of CHF 7.472 billion (close to CHF 7.5bn) in 2025, up 5.1% like-for-like and +0.8% in Swiss francs, achieved against a high comparable of ~12.3% in 2024.
Robust Free Cash Flow and Improved Leverage
Free cash flow of CHF 1,053 million (14.1% of sales), second consecutive year above CHF 1 billion; net debt-to-EBITDA improved to 2.1x from 2.3x in 2024.
Fragrance & Beauty Outperformance
Fragrance & Beauty sales CHF 3,830 million, up 7.9% like-for-like; Fine Fragrances grew 18.3% like-for-like and has more than doubled since 2019 on an LFL basis.
Solid Taste & Wellbeing Performance Given Comparables
Taste & Wellbeing sales CHF 3,642 million, up 2.4% like-for-like despite a high prior-year comparator (>10% in 2024) and continued product/category breadth (snacks, dairy, sweets).
High-Quality Profitability Metrics
Comparable EBITDA margin of 24.2% (vs 24.5% in 2024), published EBITDA CHF 1,751 million (reported decrease -0.8% vs 2024; +4.5% in local currency). Net income CHF 1,071 million (net margin 14.3%).
Shareholder Returns Maintained
Board proposes dividend CHF 72 per share (increase of 2.9% vs CHF 70), marking 25th consecutive dividend increase; cumulative returns to shareholders (dividends + buybacks) exceed CHF 9 billion.
Strategic 5-Year Delivery and 2030 Ambition
Completed 2021-2025 strategic cycle: 5-year like-for-like CAGR 6.8% (vs target 4–5%), comparable EBITDA average 22.9%, average free cash flow ~12.5%; set 2030 targets of 4–6% LFL growth and >12% free cash flow as % of sales.
Material ESG and Innovation Milestones
SBTi validation of net-zero targets; Scope 1 & 2 emissions down 50% vs 2015; 100% renewable electricity (achieved 2024); responsible sourcing up to 87% (from 20% in 2020); senior leadership female representation rose to 34% from 25%.
Sustained R&D Investment and Innovation Pipeline
R&D investment ~8% of sales (~CHF 600 million) with product innovations (e.g., Evernityl, natural colors) and digital platforms supporting future growth; management reports healthy new-win pipeline and strong brief inflows into 2026.
Geographic Balance and High-Growth Market Exposure
High-growth markets grew 8% and now represent ~49% of total sales; EAME grew 7%, Asia Pacific +5% LFL, Latin America +3.6% LFL, North America +2.6% LFL — demonstrating diversified footprint and resilience.
Negative Updates
Gross Margin Pressure from Input Costs and Tariffs
Gross margin declined from 44.1% to 43.5% in 2025, driven by higher input costs (including tariffs) and timing/inventory effects, with stronger impact in H2.
Slight Decline in Comparable EBITDA Margin
Comparable EBITDA margin decreased to 24.2% in 2025 from 24.5% in 2024 (published EBITDA margin 23.4% vs 23.8%), reflecting FX impacts, input cost dilution and targeted investments.
Fragrance Ingredients Weakness
Fragrance Ingredients sales declined due to increased competition from Chinese players on a specific ingredient; FIB softness impacted part of Fragrance & Beauty (though FIB <10% of division sales).
Taste & Wellbeing Near-Term Softness and Q4 Weakness
Taste & Wellbeing grew only 2.4% LFL for the year and experienced a Q4 decline (management referenced a -1.1% Q4 in Taste & Wellbeing), with some regional softness (Mexico, Southeast Asia) and near-term headwinds in parts of the multinational customer base.
Reported EBITDA and EPS Slightly Lower
Reported EBITDA decreased 0.8% to CHF 1,751 million (mainly FX-driven); basic EPS fell to CHF 116.08 in 2025 from CHF 118.17 in 2024.
One-Off Costs and Ongoing Investigations
Nonrecurring costs totaled CHF 39 million plus CHF 17 million related to the Louisville accident; Fragrance & Beauty reported CHF 31 million of acquisition/restructuring/project-related costs tied partly to ongoing competition authority investigations; management flagged further one-off charges expected in 2026.
Currency Headwinds from Strong Swiss Franc
Strengthening Swiss franc reduced reported Swiss franc results versus local-currency performance; management notes limited structural mitigation but some natural hedges exist.
Higher Effective Tax Rate
Effective tax rate increased to 18% in 2025 from 17% in 2024 due to implementation of OECD minimum tax, modestly reducing net income.
Regional & Segment-Specific Challenges
Latin America growth moderated (3.6% LFL) due to lower FX pricing and Mexico-specific issues; Southeast Asia slightly negative in Taste & Wellbeing; North America remains volatile despite mid-single-digit expectations.
Company Guidance
Management set out its 2030 financial targets and the 2026 outlook: they are targeting 4–6% like‑for‑like average sales growth to 2030 and an industry‑leading free cash flow rate of >12% of sales (2025 FCF was CHF1,053m or 14.1% of sales), with a group EBITDA “sweet spot” around 22–25% and continued R&D investment of ~8% of sales (~CHF600m p.a.). For 2026 they expect to operate in a volatile geopolitical environment with only limited input‑cost pressure (tariffs remain uncertain), anticipate continued momentum in Fragrance & Beauty and a Taste & Wellbeing recovery later in the year (management flagged a ~2–3 point H2 vs H1 effect), and warned of some further non‑recurring costs for investigations and performance optimisation. They emphasized financial headroom to execute the plan—net debt CHF3.7bn (net‑debt/EBITDA 2.1x), weighted average interest rate ~1.94%, net investments ~3.8% of sales (2025: CHF285m)—and proposed a CHF72 dividend per share (+2.9%), the 25th consecutive increase.Givaudan SA Financial Statement Overview
Summary
Strong profitability and growth (revenue +7.18% YoY, gross margin ~44%, EBIT margin ~18.8%, EBITDA margin ~24.2%) with healthy cash conversion (FCF +21.3% YoY; OCF/NI 1.49; FCF/NI 1.22). Balance sheet is solid but moderately leveraged (debt-to-equity 1.04), which slightly tempers the score.Income Statement
Givaudan SA's income statement reflects strong growth and profitability. The revenue has shown consistent annual growth, with a remarkable increase of 7.18% from 2023 to 2024. Gross profit margin stands at 44.13%, and the net profit margin is 14.7%, indicating efficient cost management and strong profitability. The EBIT margin is 18.81%, and the EBITDA margin is 24.18%, both of which are healthy and demonstrate strong operational performance.85
Very Positive
Balance Sheet
The balance sheet shows a solid financial structure with a debt-to-equity ratio of 1.04, indicating moderate leverage. Return on Equity (ROE) is robust at 23.8%, showcasing effective use of equity to generate profits. The equity ratio is 37.83%, reflecting a stable capital structure, though there's room for improvement in reducing leverage.78
Positive
Cash Flow
Givaudan SA's cash flow statement highlights strong cash generation capabilities. The free cash flow grew by 21.28% from 2023 to 2024, pointing to efficient cash management. The operating cash flow to net income ratio is 1.49, and the free cash flow to net income ratio is 1.22, both indicating healthy cash flow relative to earnings.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.54B | 7.41B | 6.92B | 7.12B | 6.68B | 6.32B |
| Gross Profit | 3.33B | 3.27B | 2.72B | 2.63B | 2.70B | 2.50B |
| EBITDA | 1.83B | 1.79B | 1.47B | 1.37B | 1.44B | 1.34B |
| Net Income | 1.09B | 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 | 1.12B | 1.33B | 1.10B | 588.00M | 969.00M | 857.00M |
| Operating Cash Flow | 1.45B | 1.63B | 1.37B | 892.00M | 1.23B | 1.08B |
| Investing Cash Flow | -475.00M | -448.00M | -467.00M | -451.00M | -921.00M | -830.00M |
| Financing Cash Flow | -1.28B | -1.03B | -699.00M | -229.00M | -440.00M | -286.00M |
Givaudan SA Technical Analysis
Negative
82.75
Price Trends
80.32
Negative
82.35
Negative
87.84
Negative
Market Momentum
-0.31
Positive
40.94
Neutral
40.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GVDNY, the sentiment is Negative. The current price of 82.75 is above the 20-day moving average (MA) of 79.58, above the 50-day MA of 80.32, and below the 200-day MA of 87.84, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GVDNY.
Givaudan SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $35.68B | 28.36 | 25.35% | 1.96% | 8.46% | 8.59% | |
75 Outperform | $5.51B | 37.25 | 12.06% | 0.61% | 7.55% | 22.43% | |
71 Outperform | $13.70B | 20.60 | 22.72% | 1.96% | 3.09% | 12.25% | |
68 Neutral | $25.95B | 16.66 | ― | 2.71% | -12.98% | -11.34% | |
63 Neutral | $4.02B | 28.91 | 12.31% | 1.70% | 4.25% | 56.51% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $17.88B | -43.11 | -2.84% | 2.41% | -3.01% | 82.30% |
* Basic Materials Sector Average
GVDNY
Givaudan SA
77.61
-7.56
-8.88%
BCPC
Balchem
170.17
10.26
6.42%
IFF
International Flavors & Fragrances
69.81
-14.61
-17.31%
PPG
PPG Industries
115.63
6.52
5.98%
RPM
RPM International
106.96
-12.23
-10.26%
SXT
Sensient Technologies
94.52
20.75
28.13%
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.