Givaudan S.A.

For H1 2026, Givaudan reported 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 an adjusted margin of 24.3% compared with 25.2%; gross margin improved to 44.5% from 44.0%. Reported net income was CHF 475 million versus CHF 592 million, and adjusted EPS was CHF 60.25 versus CHF 66.71. Adjusted free cash flow was minus CHF 119 million, and net debt-to-EBITDA was 2.8x at June 2026. Looking ahead, management reaffirmed the 2030 cycle targets of 4% to 6% like-for-like sales growth and adjusted free cash flow margin above 12% on average; for H2 they expect low single-digit input inflation, tariff refunds to be passed back to customers, and continued sequential improvement in Taste & Wellbeing.

Christian Stammkoetter framed his first months as CEO as a listening exercise and said he is now in “action mode,” focused on three priorities: optimize, future-proof and together. He emphasized Givaudan’s strengths in creativity, science, operational excellence and customer relationships, and said the company is investing selectively in innovation, data, digital and AI while also sharpening execution and capital allocation. His tone was constructive and confident, repeatedly pointing to broad-based growth, resilience, and confidence in H2 and the 2030 ambition.

Stewart Harris highlighted the hard numbers behind the quarter: sales of CHF 3.8 billion, adjusted EBITDA of CHF 923 million, adjusted EBITDA margin of 24.3%, net income of CHF 475 million, and adjusted free cash flow of minus CHF 119 million. He said the margin decline reflected nonrecurring costs, higher distribution costs, currency impacts, and the litigation-related items, including CHF 83 million of litigation settlements and provisions plus CHF 20 million of acquisition, restructuring and project costs. On cash, he noted net investments rose to 5.4% of sales and working capital was 30.8% of sales, but he expects meaningful working capital improvement by year-end and reiterated confidence in the 2026-2030 free cash flow target.

Analysts focused on the weak H1 cash flow and whether higher inventories or customer stocking could unwind later; management said receivables and inventory were both up, but characterized this as temporary phasing and said they see no evidence of customer prebuying or stockpiling. Another key topic was Taste & Wellbeing, especially North America: management said the weakness reflects both a difficult consumer environment and mix shifts, but sees growing opportunities in functional beverage, high protein, natural colors and GLP-1-related reformulation, with pipeline inflow improving even if revenue conversion takes time. Questions also touched on inflation, tariffs and margins; management said second-half input inflation should be low single digits, tariff refunds will be passed back to customers, and full-year adjusted EBITDA margin should be around plus/minus 24% based on what they know today.