Givaudan: Ingredients for growth

Givaudan has lost ground in terms of turnover compared to its main competitors and is now in third position behind DSM-Firmenich (in the process of merging) and International Flavor & Fragrances. In addition, inflation pressures and fears of a sharp economic slowdown have led analysts to reduce their outlook for margins and profits for the company. As a result, Givaudan’s shares have lost almost 40% since the start of the year. That said, commodity prices have already passed their peak and the company’s pricing power has certainly been underestimated. On the one hand Givaudan is committed to a program of cost control, but above all, the company has a high-quality portfolio, and is well positioned in segments benefiting from structural growth, such as natural ingredients based on of plants. These elements should translate into better-than-expected results for the 2022 financial year.