Givaudan Shares Climb After Results Beat Views
By Adria Calatayud
Givaudan shares climbed after the Swiss chemicals company reported fourth-quarter sales and full-year profit figures that beat analysts' expectations.
At 0825 GMT on Thursday, shares in Givaudan traded 4.5% higher at CHF3,467, taking its gain over the last three months to 22%.
The supplier of ingredients to the food and cosmetics industry reported sales for the fourth quarter of 1.65 billion Swiss francs ($1.91 billion), down 0.5% compared with the year-earlier period but up 7.9% on a like-for-like basis.
Analysts expected Givaudan's quarterly sales at CHF1.64 billion, with like-for-like growth of 5.9%, according to consensus estimates provided by the company.
For the year as a whole, the company reported a rise in net profit to CHF893 million from CHF856 million in 2022, with higher margins offsetting a decline in sales to CHF6.915 billion from CHF7.12 billion.
Analysts expected full-year net profit to be CHF842 million on sales of CHF6.92 billion, according to the company-provided consensus.
Givaudan's results are a sign of strength that come against the background of still challenging times, even though the company benefited from customers' efforts to replenish inventories, Baader Helvea analysts Andreas von Arx and Konstantin Wiechert wrote in a research note.
"The strong [2023] results are a clear indication that Givaudan fully delivers on its promise to reclaim profitability lost due to temporary inflation-impacts," the analysts said.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
January 25, 2024 03:47 ET (08:47 GMT)
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