Givaudan: Look for +4.3% Q2 OSG

Research evidence excerpt

Givaudan: Look for +4.3% Q2 OSG

Fragrance Ingredients, we continue to expect

negative growth, but with somewhat less pressure than in Q1 as pricing headwinds gradually

ease/anniversary. Overall, these factors leave us forecasting group Q2 OSG of +4.3%. We also Price Performance Exchange-VTX

CHFraise our FY26 OSG forecast to +4.3% (from +3.2%), reflecting easier comps through the year and 52 Week range 4161.00-2565.03

assumed gradual recovery in demand across key end markets. Our updated forecast sits just

inside Givaudan's 4–6% five-year organic growth target range.

Improved margin outlook for the year: At Q1, management highlighted increasing input cost

inflation in 2026, noting around CHF1bn of oil-linked raw material exposure. While freight and

logistics inflation can be passed through relatively quickly via surcharges, oil-linked raw

materials require customer-by-customer negotiations, creating an unavoidable lag between

cost inflation and pricing recovery. Management reiterated that costs are ultimately recovered Source: IDC Link to Barclays Live for interactive charting

CHF-for-CHF, although such timing effects can still result in temporary EBITDA margin dilution.

For H1, we forecast an adjusted EBITDA margin of 24.5%, down c.70bps YoY, reflecting an

unfavourable mix from Fine Fragrances, ongoing pressure in Fragrance Ingredients and some European Chemicals & Ingredients

residual impact from tariff-related costs evident in H2 25. Looking into H2, however, we see a Alex Sloane

+44 (0)20 3555 0645more supportive margin backdrop than we assumed in April. Lower oil prices should help ease

alexander.sloane@barclays.com

pressure on raw material costs, and we also assume Givaudan can implement pricing actions Barclays, UK