May 21, 2025, Kemptthal

On May 21, 2025, we had the pleasure of visiting Givaudan’s state-of-the-art Innovation Center in Kemptpark together with around 50 invited guests. The visit offered fascinating insights into a company that embodies Swiss quality, stability, and innovative strength.

Tradition with Vision
Listed on the Swiss stock exchange since its spin-off from Roche in 2000, Givaudan boasts over 130 years of company history—with roots in the perfume capital Grasse and a legacy going back 257 years. Founded by French brothers Léon and Xavier Givaudan, a chemist and a pharmacist, their pioneering work in essential oils and synthetic fragrances laid the foundation for a global market leader in the fragrance and flavor industry. Today, Givaudan holds approximately one-quarter of the global fragrance market.

Products containing Givaudan ingredients can be found in offerings from Nestlé, Procter & Gamble, Danone, Unilever, Colgate-Palmolive, or L’Oréal—making it highly unlikely that anyone has never come into contact with them.

Insights from the Top
CEO Gilles Andrier and Kaspar Probst, Head of Consumer Products Europe Fragrance & Beauty, provided us with exciting perspectives on the company’s history and future. Mr. Andrier captivated the audience with his reflections on the archaic nature of the human sense of smell—a biological and cultural fundamental need that Givaudan has successfully transformed into a solid business model.

Globally Active – Locally Rooted
Givaudan combines a global presence with local expertise. Since smell and taste preferences are culturally influenced, Givaudan intentionally produces close to its customers. Local perfumers, flavorists, bakers, butchers, and chefs help to accurately reflect regional differences. Thanks to its globally distributed production, the company is largely protected from currency fluctuations and only marginally affected by tariffs. However, even Givaudan cannot navigate the trade war entirely tariff-free, as raw materials such as cocoa or vanilla still need to be imported into the U.S. Thanks to its strong pricing power—common among Swiss quality companies—Givaudan is able to pass on rising costs.

An Experience for All the Senses
At interactive test stations, guests had the opportunity to conduct their own scent and taste tests—such as the synthetic creation of chewing gum or banana flavors. The event concluded with a relaxed Apéro Riche, fostering stimulating C-level exchanges with Givaudan’s leadership.

A Dynamic Start to 2025
In the first quarter of 2025, Givaudan increased sales on a comparable basis by 7.4%. Including currency effects and the acquisition of b.kolor, sales in Swiss francs rose by 8.5% to CHF 1,977 million. The Fragrance & Beauty division grew particularly strongly, up 9.8%, despite a high prior-year base (+16.3%). Givaudan remains a profitable growth company: between 2021 and 2024, it achieved average sales growth of 7.2% and a free cash flow margin of 12.1%.

Valuation and Outlook
With a current P/E ratio of 31.2 for 2025, Givaudan is trading below its five-year average of 34.0. On an EV/EBITDA 2025E basis, the stock trades at a valuation premium of around 69% compared to its three largest competitors. However, Givaudan grows significantly faster and maintains much higher margins. Quality comes at a price. While the dividend yield is only 1.7%, Givaudan can look back on a 25-year history of continuous dividend increases—thus qualifying as a dividend aristocrat as of this year. Despite a more cautious EPS growth forecast of 8.4% for 2025 (after 22.1% in 2024), analysts expect a further increase of 13.5% over the following two years. The impressive average annual return of Givaudan’s stock—around 9% plus annual dividends since 2000—speaks for itself.