Givaudan: Solid H1s with more to come in H2

Research evidence excerpt

Givaudan: Solid H1s with more to come in H2

23 July 2026

Givaudan

The Deutsche Bank Research Department is independent of other business divisions of the Bank. Details regarding

our organizational arrangements and information barriers we have to prevent and avoid conflicts of interest with

respect to our research are available on our website (https://research.db.com/Research/) under Disclaimer.

Macroeconomic fluctuations often account for most of the risks associated with exposures to instruments that

promise to pay fixed or variable interest rates. For an investor who is long fixed-rate instruments (thus receiving these

cash flows), increases in interest rates naturally lift the discount factors applied to the expected cash flows and thus

cause a loss. The longer the maturity of a certain cash flow and the higher the move in the discount factor, the higher

will be the loss. Upside surprises in inflation, fiscal funding needs, and FX depreciation rates are among the most

common adverse macroeconomic shocks to receivers. But counterparty exposure, issuer creditworthiness, client

segmentation, regulation (including changes in assets holding limits for different types of investors), changes in tax

policies, currency convertibility (which may constrain currency conversion, repatriation of profits and/or liquidation of

positions), and settlement issues related to local clearing houses are also important risk factors. The sensitivity of

fixed-income instruments to macroeconomic shocks may be mitigated by indexing the contracted cash flows to

inflation, to FX depreciation, or to specified interest rates - these are common in emerging markets. The index fixings

may - by construction - lag or mis-measure the actual move in the underlying variables they are intended to track.