Oct. 11 (Bloomberg) -- Givaudan SA, the world’s largest maker of flavors and fragrances, gained as much as 1.7 percent in Zurich trading after pushing through price increases to combat raw-material inflation.
The maker of the fragrance for Marc Jacobs’s Lola climbed to as much as 758 Swiss francs and was trading up 1.4 percent at 755.5 francs as of 10:30 a.m. local time, even as Switzerland’s benchmark SMI index dropped 0.5 percent.
Givaudan is sticking to its forecast that price increases will mitigate half the impact of more expensive raw materials this year and fully cover them next year, it said today. Third- quarter sales gained 5.4 percent to 966 million francs ($1.07 billion) in local currencies, the Vernier, Switzerland-based company said. Analysts predicted 983.8 million francs, though in local currency, sales were broadly in line with estimates.
“The company has the power to raise prices,” Celine Pannuti, a London-based analyst at JPMorgan Cazenove, said in a note to clients. “Pricing is likely to accelerate in the full year 2012 as the company should continue to ramp up price increases.” Pannuti rates Givaudan “overweight.”
Givaudan reiterated a mid-term forecast to expand at about double the pace of the 2 percent to 3 percent growth expected for the wider market. Expansion in Asia and Latin America is part of Chief Executive Officer Gilles Andrier’s strategy to generate half of sales in faster-growing emerging markets by 2015.
--Editors: Andrew Noel, David Risser
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