Equity prospects

GIVAUDAN

John Royden, Head of Research

PriceCHF 2,497

52 week high-lowCHF 2,520—CHF 2,098

Net yield2.4%

Hist / pros per34.9—27.9

Equity market capCHF 23,185

 

You probably don’t know this but the probability that you have a Givaudan product in most of your domestic consumables is very high.

Givaudan is based in Switzerland and makes fragrances and flavours. They are the essence of rose in your soap, the wafts of lavender as your laundry comes out of the tumble dryer as well as the vanilla in your ice-cream and the magic bag of ingredients that turns pork meat into the finest of salamis.

Whilst Givaudan uses both synthetics as well as naturally derived ingredients, they are able to ride the re-formulation trend for anti-fat, anti-salt and pro-natural flavours.

Additionally, they could benefit from the emerging market urbanisation trend which, mostly in Asia, seems to be driving consumers to buy more processed food and less raw food from market stalls. 50% of Givaudan’s sales are currently to emerging markets and if this urbanisation trend continues that percentage could grow over time.

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