Swiss fragrance and flavor manufacturer Givaudan has reported a successful 2009, despite the difficult economic conditions. The company’s net income increased by 79.3% to CHF 199 million in 2009 from CHF 111 million in 2008. This represents 5.0% of sales in 2009, versus 2.7% in 2008. Basic earnings per share increased to CHF 25.07 in 2009 from CHF 14.98 in the previous year.

Givaudan’s Fragrance Division sales were CHF 1,824 million, an increase of 0.9% in local currencies and a decrease of 3.9% in Swiss francs versus 2008. Flavor Division sales were CHF 2,135 million, an increase of 1.9% in local currencies and a decrease of 2.5% in Swiss francs compared to the previous year. By comparison, sales increased by 2.2% versus 2008.

Gilles Andrier, CEO, says, “Givaudan’s overall performance in 2009, against the backdrop of a difficult business environment, is a very satisfactory achievement. It is also a strong sign of our unique capability to understand and deliver innovation to support our customers, demonstrating at the same time a deep knowledge of the markets we serve. Givaudan fared better than the overall market because of the solid base we have put in place through the integration of Quest International as well as the exceptional efforts and dedication of our employees.”

Givaudan delivered an operating cash flow of CHF 738 million, an increase of CHF 197 million over 2008. A strong focus on working capital management delivered a reduction in inventories of CHF 126 million, down 16.7% versus 2008 levels, and accounts receivables were maintained at 2008 levels, despite a strong sales increase in the last quarter versus prior year comparatives, the company reports.

Givaudan’s board of directors will recommend to the Annual General Meeting in March to distribute a cash dividend to the shareholders of CHF 20.60 per share. This represents an increase of 3.0% over 2008