Running like Swiss clockwork

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Running like Swiss clockwork

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Givaudan

Reiterate Rating: BUY | PO: 4,000 CHF | Price: 3,177 CHF

Back on track (or just a function of easier comps) 24 July 2026

With 4.3% organic sales growth in Q2, Givaudan was back within its historic growth Equity

algorithm range, after falling below this in the prior two quarters. To some extent, this

simply reflected an easier comparison base, in our view, as neither the two nor three

Key Changesyear growth stack actually accelerated sequentially. Underlying business trends were

mixed, with a continued robust growth in consumer product fragrances, but anaemic (CHF) Previous Current

performance in US/EU taste reflecting the inflationary squeeze on purchasing power 2026E EPS 117.81 119.51

(and consistent with lacklustre Nielsen data). The conference call offered two upbeat 2027E EPS 125.37 129.26

comments. First, the trajectory of growth through the quarter was not front loaded by 2028E EPS 136.14 138.11

Hormuz induced re-stocking, with a jump in reported receivables suggesting June

remained strong. Second, management described a robust level of briefing activity. This Matthew Yates >>

Research Analyst

stems from nutritional and regulatory driven reformulation, in part related to the MLI (UK)

emergence of new categories and dietary trends on the back of GLP-1 weight loss drug +44 20 7996 4537 matthew.yates@bofa.com

proliferation. Our 2026-27 EPS rises by 1-3%. Reiterate Buy, PO CHF4000. The shares John Campbell >>

are trading at a 70% premium to the market, vs historic average of 100%. Research Analyst

MLI (UK)

Cash conversion concern: working cap and litigation +44jcampbell24@bofa.com20 7995 0643

While topline trends are reassuring, there were some incremental negatives to highlight Julia Winckelmann >>