Growth was especially seen in its fragrance and beauty division, where sales grew 7.6 percent to CHF 3.3 billion ($3.8 billion). Fine fragrances were up 14 percent.

Fragrance is a continued outperformer in beauty. According to market research firm Circana, prestige fragrance sales revenue grew by 13 percent from January through August 2023 against the same period last year. Gen-Z and Millennials are some of the heaviest users of fragrance, with Gen-Z likely to purchase multiple fragrances per year. Givaudan has created the likes of Lancôme Idole, Boss Hugo Boss, and Tom Ford Black Orchid.

The company noted “sustained high levels” of new business for its fine fragrances division. While it noted challenging business conditions, it said it had implemented price increases to “fully compensate” for any increases in input costs. Full-year earnings before interest, taxes, depreciation and amortisation fell 0.7 percent to CHF 1.47 billion ($1.70 billion), as the company struggled with inventory reductions and lower demand throughout the year.

The growth in fragrance has helped offset the company’s poorer sales performance in its taste and wellbeing unit, which only grew one percent on a like-for-like basis. The division sells food and drink extracts and has seen subdued demand.

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