Givaudan AG (GIVN.S): Broadly positive sector implications from the 1H results, nudging up Givaudan‘s forecasts

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Givaudan AG (GIVN.S): Broadly positive sector implications from the 1H results, nudging up Givaudan‘s forecasts

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24 Jul 2026 00:00:00 ET │ 13 pages

Givaudan AG (GIVN.S)

Broadly positive sector implications from the 1H results, nudging up

Givaudan's forecasts

CITI'S TAKE Neutral

Price (23 Jul 26 17:30) SFr3,177.00 Yesterday’s negative share price reaction, Givaudan closed down 6%, with

Target price SFr3,150.00 peers falling 2.5-5%, looks excessive relative to the overall quality of

results and likely driven by broader market rotation. Stronger-than- Expected share price return -0.8%

expected 2Q volumes, positive lead indicators and no evidence of pre- Expected dividend yield 2.2%

buying or an impending destock make us comfortable raising 2H volume Expected total return 1.4%

growth to c.4%. Meanwhile, contracted low-single-digit input-cost Market Cap SFr29,335M

inflation and management’s confidence in a c.24% FY margin support a US$36,018M

20bp margin upgrade. The read-across for peers is positive on volumes

and costs, tempered by weak cash conversion. Tariff refunds are largely a

distraction: they reduce reported pricing but should be broadly margin-

neutral, while leaving underlying volumes unaffected. We retain FY26 OSG Ranulf Orr, CFAAC

at 3.9% and raise EBITDA 1.5% to CHF1,806m, c.1% above consensus. +44-20-7986-3922

Givaudan’s quality is well understood and highly valued, while limited EPS ranulf.orr@citi.com

growth, margin pressure and now weaker cash conversion constrain Sebastian Satz, CFA

further upside. We remain Neutral preferring DSM-Firmenich, Novonesis, +44-203-569-3662

Symrise. sebastian.satz@citi.com

Omi Pallavi

Lifting 2H volume forecasts — Going into the results, the consensus set up was for +44-20-7508-1367