Firm enjoys sweet smell of success

Givaudan SA, the world's biggest flavors and fragrances maker, said third-quarter revenue increased 52 percent after the $2.44 billion acquisition of British rival Quest.

Revenue rose to 1.1 billion Swiss francs ($930 million) from 726 million francs, in line with analyst estimates. Nine-month sales rose 41 percent to 3.11 billion francs, Givaudan said yesterday.

The Swiss company, based in Vernier, said it would meet a 2010 target for 200 million francs in cost savings from the integration of Quest, bought from Imperial Chemical Industries Plc in March. The purchase accelerated Givaudan's expansion in the growing market for perfume and air freshener scents, away from less-profitable food flavorings.

Givaudan has risen 1.6 percent to 1,146 francs on the Zurich stock exchange this year, bolstering its market value to 8.3 billion francs. German rival Symrise AG is down 0.8 percent.

The Quest takeover, Givaudan's biggest ever, added clients such as Giorgio Armani SpA and Christian Dior SA, and flavors for toothpaste, chewing gum, yogurts, sodas and savory snacks. Sales at the fragrances unit, which makes ingredients for Yves Saint Laurent's Opium, rose 56 percent.

Flavorings grew 31 percent in the first nine months. Customers include the world's largest food company Nestle SA and the world's biggest soda maker Coca Cola Co, and Givaudan's top 10 clients account for 40 percent of the division's revenue, Jon Cox, an analyst at Landesbanki Kepler in Zurich, said in a research note.

Bloomberg News

(China Daily 10/09/2007 page15)