Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on GIVAUDAN-REG. We currently have 8 research reports from 1 professional analysts.
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Research reports on
H2’s weaker profitability
01 Feb 17
Givaudan reported +6% higher FY sales (organic: +4%) to CHF4,663m, but the gross profit margin weakened from 46.2% to 45.6%. EBITDA came in +5% higher at €1,126m and the margin was 24.1% (24.3%). Net income attributable to shareholders increased +3% to CHF64m. Operating CF declined 12% to CHF805m, primarily due to lower adjustments for non-cash items (CHF261m after CHF390m). Investing CF moved from CHF-225m to CHF-503m primarily pushed by acquisitions (Spicetec Flavors and Seasonings). Financing CF was CHF-437m (CHF-578m) benefiting from higher net cross debt issuance despite higher dividend payments. Management proposes, as expected, a CHF2 higher dividend (CHF56 after CHF54) per share at the next AGM on 23 March 2017. Management confirmed the next mid-term guidance for the 2015-20 period of a 4-5% average organic growth rate and an average 12-17% free cash flow as a percentage of sales. A more explicit guidance for 2017 was not given.
Mature markets flare-up
10 Oct 16
Reported figures were positively impacted by favourable FX rates as the performance in developed markets was operationally good, but not strong. Group sales rose +7% (+5% lfl) to CHF3,518m after nine months. Fragrance reported the strongest performance (+9% to CHF1,699m; +8% lfl) followed by Flavour (+5% to CHF1,819m; +3% lfl), which was partly helped by an acquisition.
Fragrances' nice push
18 Jul 16
In H1, group sales rose +7% to CHF2,334m, accompanied by a slight improvement in the gross profit margin (46.8% after 46.5%). EBITDA increased +13% to CHF638m and net profit attributable to shareholders was up +8% to CHF368m. Operating CF shrunk from CHF341m to CHF237m, suffering from higher NWC outflow (CHF-242m after CHF-178m) and seeing higher inventories and receivables. Investing CF came in lower at CHF-48m (CHF-77m), due to lower acquisition costs. Financing CF stood unchanged at CHF-407m despite some higher dividend payments (CHF-495m after CHF-461m) and higher net gross debt proceeds (CHF98m after CHF79m). Management failed to give FY guidance but reiterated the company’s 2020 ambition of a 4-5% average organic growth rate and an average 12-17% free cash flow as a perecentage of sales.
Real performance held back, but managed to improve profitability
02 Feb 16
FY group sales were relatively unchanged (organic: +3%) at CHF4,396m but gross profit margin was a notch stronger (+20bp to 46.2%). EBIT was up +4% to CHF794m and net profit attributable to shareholders rose +13% to CHF635m helped by a lower tax burden due to lower deferred taxes. Operating CF increased +14% to CHF915m supported by a lower NWC outflow (CHF-80m after CHF-1126m). NWC saw lower inventories and other current assets. Despite lower capex, investing CF increased from CHF-209m to CHF-225m, factoring in higher acquisition costs. Having paid higher dividends, financing CF came in at CHF-578m after CHF-697m, helped by lower net gross debt repayments (CHF-60m after CHF-168m). Management will propose a CHF4 higher dividend (CHF54 after CHF50) per share at the next AGM on 17 March 2016. Management confirmed the next mid-term guidance for the 2015-2020 period, expecting a 4-5% average organic growth rate and an average 12-17% free cash flow as % of sales. An explicit 2016 was not given.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Continued progress since interims
01 Feb 17
Carclo has announced that H217 trading remains strong and the outlook for the full year is in line with its expectations. Growth is being driven by the two larger divisions, Technical Plastics (TP) and LED Technologies, while the Aerospace division is experiencing stable trading conditions. We leave our estimates unchanged, but note potential currency upside should foreign exchange rates remain at current levels for the remainder of FY17.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Small Cap Breakfast
14 Dec 16
Ultimate Products—The Telegraph reports Jim McCarthy, former chief of Poundland has been appointed Chairman of Ultimate Products ahead of a £100m listing in H1 2017. Ultimate Products owns the Beldray cleaning brand and the licence to sell Russell Hobbs and Salter electrical products in the UK. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
N+1 Singer - Victrex - Strong Q4 delivered – meeting FY expectations
11 Oct 16
Victrex’ year end update confirms a strong Q4 performance, driven by the anticipated surge in demand from its large consumer electronics programme. Full year volume and revenue are both a touch ahead of our forecasts and consensus expectations. Invibio has delivered a steady year, in line with expectations, and the Magma oil & gas project has delivered its first meaningful revenues of over £1m. The outlook reiterates previous caution over the consumer electronics outlook but we believe this is now reflected in most analysts’ forecasts, including our own. There is no mention of currency, but this is clearly a strong tailwind for FY17 and, if current rates persist, into FY18. Overall, today’s statement should be well received. There was a lot to do in Q4 and Victrex has delivered it. In our view, the FY17 rating of 16x with a 6% yield (inc. 3% special) represents an attractive entry point for this high quality group.