2020
Integrated Annual Report
2020
Integrated
Annual Report
2020 Integrated Annual Report
  • A year in review
  • Givaudan in figures
  • Sustainable value creation
  • Governance
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A year 

in review

through our Chairman’s letter
and CEO interview
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A year 

in review

through our Chairman’s letter
and CEO interview
explore

Givaudan

in figures

our performance, our sustainable performance review and our sustainability indicators
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Givaudan

in figures

our performance, our sustainable performance review and our sustainability indicators
explore

Sustainable

value creation

through our 2020 achievements, our purpose,
our 2025 strategy and our business model
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Sustainable

value creation

through our 2020 achievements, our purpose,
our 2025 strategy and our business model
explore

Governance

highlights of our corporate governance
and compensation reports
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Governance

highlights of our corporate governance
and compensation reports
explore

Download centre

Our download centre provides the platform to browse our different sections of the Integrated Annual Report and other publications
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Download centre

Our download centre provides the platform to browse our different sections of the Integrated Annual Report and other publications
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  • 1Chairman’s letter
  • 2CEO interview
  • 3Our response to COVID-19
A year in review
Chairman’s letter

Navigating through an extraordinary year.

Calvin Grieder, Chairman of the Board

“I’d like to thank our employees, customers, partners and suppliers for their great collaboration and commitment in these testing times.”
Calvin Grieder

 

Looking back on the events of 2020, I am struck by the resilience of Givaudan, keeping our employees safe and well whilst seamlessly serving our customers. I'm proud of everything we have accomplished over the last five years, delivering on all of the ambitions of our 2020 strategy, particularly when faced with the most difficult of circumstances in the last year.

The global pandemic brought much disruption to our business and the wider market, but we navigated through and I’d like to thank our employees, customers, partners and suppliers for their great collaboration and commitment in these testing times. I’d also like to thank you all for your commitment and investment in Givaudan.

For our 2020 strategy, we set out to achieve ambitious financial targets, creating shared value for all. In 2020 we delivered solid topline growth of 1.9% in Swiss Francs and free cash flow generation of CHF 811 million. On the basis of Givaudan’s strong performance in 2020, and its continued solid financial position, the Board of Directors will propose an increase in the dividend to CHF 64.00 at the Annual General Meeting on 25 March 2021. This is the twentieth increase since our listing on the Swiss stock exchange.

2020 was also an important year as we announced our next five-year plan. ‘Committed to Growth, with Purpose’ is how we will deliver ambitious financial targets while also making progress in the areas of creations, nature, people and communities. Being a responsible business has always guided the way we act and behave, and the role we play in advancing on some of the key issues affecting society such as climate change and social inequality. This is reflected in our recently announced objective to become B Corp certified and be a business that acts as a force for a better world.

We noted with interest the recent referendum that took place in Switzerland called the ‘Responsible Business Initiative’, which called for Swiss companies to ensure that all their subsidiaries, as well as customers and supply chains worldwide, observe human rights and environmental standards. Givaudan’s ambitions deployed in our purpose and strong adherence to ethics, human rights and environmental standards guarantee that we operate well within the current legal frameworks and international standards.

As a Board, we also had to adapt our ways of working for the circumstances encountered in 2020. Making use of virtual digital tools ensured we still met regularly and were able to deliberate and approve the new 2025 strategy. We continued to focus our efforts on succession planning. We welcomed two new Board members this year, who were virtually onboarded and have brought great expertise and value. At the next AGM in 2021, longstanding Board member Thomas Rufer will retire. I would like to thank him for his valuable contributions over the last 12 years as a Board Member and as Chairman of the Audit Committee. No further Board members are being announced, and aside Thomas, all other Board members will stand for re-election.

Looking ahead, we anticipate ongoing disruption from the pandemic in 2021, but I have every confidence that Givaudan will successfully navigate through this. The Board has actively participated in designing the 2025 strategy and we all are confident it will ensure we continue to create sustainable value, while advancing towards a more sustainable business in the areas of creations, nature, people and communities. Many of the trends we identified for the 2025 strategy have grown in importance this year, particularly digitalisation, with the rise of e-commerce and the transformation of the ways we work. We will continue to advance our agenda in this space.

I’d like to express my heartfelt thanks and gratitude to my fellow members of the Board of Directors, the Executive Committee and all our employees worldwide for their hard work and dedication, especially after such a testing year. It is their contribution and passion that makes Givaudan a unique place to work.

Finally, I would like to share my thanks to our shareholders for your trust and continuing support. It is with much disappointment that we will again not host an in-person AGM in March 2021 due to the continuing uncertainty around COVID-19. Instead, we have decided to donate a sum to the Givaudan Foundation to support a number of worthwhile projects in our communities.

I send my best wishes and health for the year ahead.

Calvin Grieder
Chairman of the Board

Givaudan in figures
explore
  • 1Our performance
  • 2Sustainable performance review
  • 3Sustainability indicators
Givaudan in figures
Our performance

During 2020, the impact of COVID-19 became global. The Givaudan purpose was at the heart of our response to the pandemic as we focused on supporting our employees and communities and on maintaining our operations and global supply chain.

CHF 6,322
million sales
 
 
4.0%
sales growth
LFL ¹
 
12.8%
free cash flow
as a % of sales
 
CHF 811
million
free cash flow
 
CHF 64.00
proposed dividend ²
per share
 
22.1%
EBITDA margin
as a % of sales
 
  1. Like-for-like excludes the impact of currency, acquisitions and disposals.
  2. Subject to shareholder approval at the AGM on 25 March 2021.
Sustainable value creation
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  • 1Delivering on our 2020 ambitions
  • 2Creating future value through our purpose
  • 3Our 2025 strategy
  • 4Our business model
  • 5Key partnerships
Sustainable value creation
Delivering on our 2020 ambitions

Over the last five years of our strategy cycle, we successfully capitalised on our position as the industry leader through building closer relationships with our customers and creating long-term value. Despite the challenges of COVID-19 in 2020, we achieved our ambitious five-year financial targets with strong sales growth and free cash flow.

Through a strong innovation culture built on our pioneering heritage we continued to deliver new sustainable solutions for our customers that also tackle the industry’s pressing challenges. Responsible growth has guided the management of our impact through our creations, people, communities and nature. Our actions are bolder in the areas of the environment, sourcing and innovation, ensuring we meet today’s needs while building for a better tomorrow.

“I’m proud of our performance over the last five years in successfully delivering responsible growth and shared success for all our stakeholders”. Gilles Andrier, CEO

 

Our 2020 strategy
Responsible growth. Shared success.
 

Our 2020 strategy

¹ over a five-year period by 2020

 

Our 2020 achievements

Growing with our customers
Delivering with excellence
Partnering for shared success

“Our market leadership in the fast growing segment of local and regional customers is greatly enhanced through the acquisitions that we have made.”
Maurizio Volpi, President Fragrance & Beauty

  

Highlights
 


Continued investment in commercial high growth markets especially China and India

Investments in local and regional customer segment, both organically and via acquisitions, brings overall share to ~50% of Group sales

Expanding product and customer portfolio in key growth areas (e.g. Naturals, health and wellbeing, Active Beauty, local and regional customers)

Attained No. 1 position in fine fragrance market

Sales growth of 4.9% CAGR 2016-2020

Incremental sales contribution of CHF 1.5 billion through acquisitions

Developing further our integrated solutions business through existing and acquired capabilities

 

“Over the past five years, we have expanded our product portfolio in a significant way, complementing our industry-leading flavour and taste capabilities with an outstanding offer of natural functional and nutritional solutions.”
Louie D’Amico, President Taste & Wellbeing

“Our GBS organisation is an integral part of Givaudan, delivering high quality solutions across the value chain.”
Anne Tayac, Head of Givaudan Business Solutions

 

Highlights
 


Successful global implementation of Givaudan Business Solutions (GBS), with three delivery centres established in Budapest, Kuala Lumpur and Buenos Aires

Benefits fully achieved and further opportunities for scope extensions in the future identified

Automation and continuous improvement of our processes and in production sites, contributed strongly to sustain competitiveness

Significant investments in new production facilities in India and China to support business growth

Strong focus on integration of acquired companies to ensure high levels of service quality during transition

Highly dedicated supply chain effort to manage multiple crises, particularly impacting raw material supply

Earned key sustainability recognitions: CDP leadership scores for climate action and water security; a world leader for supplier engagement on climate change, EcoVadis Platinum status

Well-developed business continuity plans in both divisions to provide agility and flexibility in all situations

Strong improvement in safety performance and culture across the organisation

“We have significantly expanded our partnership networks in all areas of the business, delivering value for Givaudan and for the collaborators and communities that work with us.”
Willem Mutsaerts, Head of Global Procurement and Sustainability

 

Highlights
 


Strengthening the global innovation ecosystem by opening our new flagship Innovation Centre in Switzerland

Extended partnership network in innovation with academia, start-ups and established innovators

We have doubled sales from innovation linked to external collaboration

Established the Givaudan Digital Factory in Paris to drive our digital agenda

Improved employee engagement and strong focus on diversity and leadership development

Deeper engagement with suppliers on sustainability topics as well as extension of the responsible sourcing initiatives

Development of multiple joint ventures to secure access to key raw materials in both divisions

Launch of 'Connect to Win' programme to accelerate innovation in partnership with suppliers

Strengthened our commitment to enrich the communities that work with Givaudan

 

“The ambition of our purpose is that Givaudan will be a place where we all love to be and grow. I am delighted we have improved our overall engagement level and we continue to build on this, focusing on our ambitious goals for inclusion and care for all our people.”
Simon Halle-Smith, Head of Global Human Resources and EHS

Governance
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  • 1Effective and transparent corporate governance
  • 2Compensation
Governance
Effective and transparent corporate governance

A good governance system supported by responsible management and effective supervision is essential for shared success and for the continued creation of value for the Company.

At Givaudan we pride ourselves in transparent governance, which ensures we manage and supervise our operations in a responsible way. Our structures and processes for the direction and control of our Company allow for a continued focus on value creation for all our stakeholders as well as nature, in line with our purpose. They include internal and external controls and monitoring systems.

Read more about our corporate governance

Meet our Board of Directors  Meet our Executive Committee

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