Givaudan S.A.

Givaudan reported H1 2026 sales of CHF 3,799 million, up 3.6% like-for-like and down 1.7% in Swiss francs. Adjusted EBITDA was CHF 923 million versus CHF 973 million in H1 2025, with adjusted EBITDA margin at 24.3% versus 25.2%; reported EBITDA was CHF 820 million versus CHF 945 million. Reported net income was CHF 475 million versus CHF 592 million, and adjusted basic EPS was CHF 60.25 versus CHF 66.71. Gross margin improved to 44.5% from 44.0%. Adjusted free cash flow was minus CHF 119 million, or minus 3.1% of sales. For the full strategic cycle 2026-2030, management reiterated 4% to 6% like-for-like sales growth and an adjusted free cash flow margin above 12% on average. For H2, management expects low single-digit input-cost inflation, tariffs to be passed back to customers, and no meaningful net pricing contribution.

Christian Stammkoetter said his first months as CEO were spent listening to customers, employees, and investors, and he emphasized three priorities: optimize, future-proof, and together. He framed the business as resilient, with a unique mix of creativity, science, and operational excellence, and said the company is focused on fine-tuning strategy, investing selectively in innovation, data, digital and AI, and improving execution. His tone was constructive and confident, repeatedly pointing to a healthy pipeline, broad customer traction, and confidence in the 2030 targets despite macro and geopolitical uncertainty.

Stewart Harris emphasized that H1 results were impacted by currency, higher distribution costs, and CHF 103 million of nonrecurring costs, including CHF 83 million of litigation settlements and provisions plus CHF 20 million of acquisition, restructuring and project-related costs. He noted gross margin edged up to 44.5%, while adjusted EBITDA margin held at 24.3%; leverage rose to 2.8x net debt-to-EBITDA from 2.1x in December 2025, mainly because of the nonrecurring items. He also said net debt was CHF 4.6 billion, weighted average interest rate was 2.12%, net working capital was 30.8% of sales, and net investments were 5.4% of sales, with meaningful working-capital improvement expected by year-end.

Analysts pressed on weak H1 free cash flow and the large working-capital build; management said the increase in receivables and inventory was temporary, not due to overdues or customer stocking, and they do not see evidence of prebuying that would unwind in H2. Questions on Taste & Wellbeing focused on North America and the pace of recovery; management said the region is pressured by soft end demand and mix shifts, but the pipeline is improving in areas like functional beverages, natural colors, and protein masking, and revenue conversion will take time because it is a project-based business. On GLP-1, management said the net effect is positive because it drives more reformulation work and greater use of Givaudan’s flavor, masking, and bioscience capabilities.