Reason 5: Sustainable value creation driven by our purpose
Our Company has a strong track record of delivering on our ambitious financial targets while ensuring our sustainable long-term performance.
Strong and sustainable financial performance
We have a strong track record of delivering with excellence, which is translated in a strong financial performance and creation of significant value for shareholders. We generate a consistently high level of cash flows that are invested to further develop the business and to provide long term attractive returns for shareholders.
Organic
sales growth
4.9%
2016-2020
Free cash flow
as % of sales
12.6%
2016-2020
In August 2020 we announced our new 2025 strategy which sets out our roadmap to deliver sustainable value creation over the next five years for all our stakeholders. Ambitious financial targets remain central to our strategy roadmap, along with the addition of purpose linked targets to show the progress we want to make towards our longer term purpose ambitions in the areas of creations, nature, people and communities.
Sales
growth
4.0-5.0%
2021-2025
Average like-for-like1
sales growth
Free cash flow
as % of sales
> 12.0%
2021-2025
Average FCF2
as % of sales
Purpose
commitments
Purpose linked targets
2021-2025
Progress towards all published
purpose targets
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.
Since IPO in 2000 substantial value has been created
> CHF 40 billion of total shareholder return since the IPO. Average annual yield of 13.6% vs 4.6% of SMI.
Acting as a force for good
As a purpose-led Company, we can go even further to make our world a happier and healthier place.
Our purpose, a guiding star in our 2025 strategy, leads the way to increasing our positive impact on society and the planet in order to ensure our sustainable long-term performance. We hold ourselves accountable to our purpose through bold, measurable ambitions, to ensure we live up to being a successful, sustainable business acting as a force for good.
Our business has existed for over 250 years and during this time we’ve worked hard to create a positive impact. As we grow together with our customers, this heritage, together with our experience and external recognition gives us confidence in achieving our highly ambitious purpose-related targets which encapsulate our approach to ESG.
Read more on our approach to ESG Read more on our purpose
Expanding our portfolio over time
Givaudan has a desire to create value for its customers, and ultimately, for all of its stakeholders, mostly through organic growth. In addition, acquisitions have brought complementary strength and capabilities:
- expanding our global footprint and customer base;
- responding to evolving consumer preferences in new ways (naturals, beauty, sense, health and nutrition).
“Key to our strategy of value creation is a particular focus on areas where we can deliver winning solutions for our customers. In the last four years Givaudan has announced the acquisition of nine companies, each of which supports our strategic priorities of expanding our offer in naturals, active beauty and integrated solutions.”
Tom Hallam, Chief Financial Officer
Acquisitions and investments will continue to play an important role in our strategy of value creation for all stakeholders.
Read more about our acquisitions
Sustainable
value creation driven by our purpose
Our Company has a strong track record of delivering on our ambitious financial targets while ensuring our sustainable long-term performance.