Swiss flavour firm Firmenich unveils record annual sales
ZURICH: Swiss group Firmenich, one of the world’s major flavour and perfume manufacturers, unveiled record annual sales Friday fuelled by market share gains in fine perfumes, ahead of a merger with a Dutch company. The firm notched a 10.5 percent increase in annual turnover, in the year to June 30, to 4.7 billion Swiss francs ($4.9 billion), it said in a statement. Excluding currency effects, its sales increased by 11.1 percent. “These are record results in the history of Firmenich,” its chief executive Gilbert Ghostine told AFP. Its gross operating surplus increased by 10.9 percent compared to the previous financial year, notably due to price increases to compensate for inflation in the costs of raw materials, energy and logistics. The merger between Firmenich-which makes flavours for food products, and scents for fine perfumery, shampoos and detergents-and chemical firm DSM should be finalised in the first half of 2023. Together they should produce a giant that will turn over 11 billion euros ($11.2 billion) a year and employ 28,000 people.
Natural, renewable focus
Firmenich, which is not listed on the stock exchange, does not publish its net profit. Perfumery division sales climbed 11.3 percent thanks to market gains in fine perfumery-sales of which jumped 32.5 percent. Its flavour branch saw sales rise 10.7 percent upon demand for sugar-reducing ingredients and plant-based proteins as alternatives to meat and dairy. The group is reaping the benefits of “investments we have made over the years”, insisted its boss, citing the opening of a creation centre in Grasse-near the southeast French coastal resort of Cannes-where customers can spend the day with its perfume masters to create new fragrances. The company’s top noses have played a part in fragrances such as Angel by Thierry Mugler, Acqua di Gio by Armani, Calvin Klein’s CK One and Flower by Kenzo. Like its competitors, Firmenich has also invested heavily in natural and renewable ingredients. “You always have to anticipate trends. Consumers today are bio-responsible. They don’t just look at naturalness, they also look at the environmental footprint,” said Ghostine.
Based in Satigny, a wine-producing village outside Geneva, Swiss scientist Philippe Chuit founded the company in 1895 in Charles Firmenich’s garage. Today Firmenich employs 10,000 people with sites in 83 countries. Long attached to its independence, the company sprung a surprise in May by announcing the planned merger. Ghostine said the group had “adapted” to a changing industry, choosing DSM due to the complementarity of their activities. He highlighted their future “strike force” in research and development, with 15 research centres worldwide once combined.