Ambitious financial targets are a fundamental part of Givaudan’s strategy.
Over the next five years, we will continue to deliver sustainable value creation that benefits all. ‘Committed to Growth, with Purpose’ is our intention to deliver growth partnership with our customers, through creating inspiring products for happier, healthier lives and having a positive impact on nature, people and communities, whilst achieving the ambitious financial targets.
Our 2025 roadmap
Our 2025 strategy is focused around three growth drivers, ‘Expand the portfolio’, ‘Extend customer reach’ and ‘Focussed market strategies’ and is supported by four growth enablers, which are aligned with the Company’s purpose domains, namely creations, nature, people and communities. These three growth drivers and four enablers are all underpinned by a commitment to ‘Excellence, Innovation & Simplicity – in everything we do’.
Ambitious targets are an integral part of Givaudan’s 2025 strategy, with the Company aiming to achieve organic sales growth of 4-5% on a like-for-like basis and free cash flow of at least 12%, both measured as an average over the five-year period strategy cycle. In addition, the Company aims to deliver on key non-financial targets around sustainability, diversity and safety, linked to Givaudan’s purpose.
- Like-for-like (LFL) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c)??excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior?period
- Free Cash Flow (FCF) refers to operating cash flow after net investments, interest paid and lease payments
Delivering on our 2020 ambitions
Givaudan delivered strong financial performance in 2020 and successfully delivered on all our ambitious targets in relation to the 2016-2020 strategy.
Over this five-year strategic cycle, we successfully capitalised on our position as the industry leader through building closer relationships with our customers and creating long-term value. Despite the challenges of COVID-19 in 2020, we achieved our ambitious five-year financial targets with strong sales growth and free cash flow.