Givaudan's third-quarter organic sales growth came in at almost twice the level analysts had expected, with the fragrance and flavour group's beauty business propelled by demand for luxury perfumes.
Like-for-like sales rose 8.6% in the quarter, against analyst expectations of 4.7%. The Fragrance & Beauty division generated sales of CHF 1.14 billion (US$1.37 billion) in Q3, with LFL growth of 13.5%, up from 6.8% growth in the same quarter of 2025.
Over the first nine months, Fragrance & Beauty recorded CHF 3.15 billion (US$3.78 billion), up 8.8% LFL, ahead of the 8% growth booked in the same period a year earlier. The division accounted for roughly 53% of group sales in that period. At group level, Givaudan reported first three-quarter sales of CHF 5.89 billion (US$7.08 billion).
The report showed sales accelerating as the nine-month period closed. Vontobel analyst Arben Hasanaj said the acceleration should reinforce confidence in Givaudan's growth profile and resilience, according to Reuters. Analysts at Vontobel and Jefferies estimated, also cited by Reuters, that Fine Fragrance sales grew around 31% organically in Q3 alone. Givaudan shares rose nearly 7% after the update, reaching a 15-month high.
The results lifted peers as well. Reuters reported that dsm-firmenich, Novonesis and Symrise shares rose between 1.6% and 3.1% in early trading following Givaudan's report.
Fine fragrance leads the gains
Fine Fragrance sales increased 15.3% LFL, set against a competitive prior-year comparable of 18.7%. Givaudan said the back-to-back double-digit growth points to continued resilience in the fine-fragrance business and strong demand across the premium perfume market.
Consumer Products sales rose 9.3% LFL against a prior-year comparable of 5.9%, suggesting fragrance demand extends beyond fine perfumery into personal, oral, home and fabric care. Fragrance Ingredients and Active Beauty combined, however, declined 2.5%, compared with a 1.5% LFL increase in the first nine months of 2025.
Givaudan's LFL figures exclude acquisitions. On a reported basis, acquisitions contributed 2.8% to Fragrance & Beauty growth in the nine-month period, while currency translation had a negative impact of 3.8%. Acquisitions contributed 1.4% at group level. Givaudan highlighted two transactions: the acquisitions of Belle Aire Creations for CHF 62 million (US$74.48 million) and Vollmens Fragrances for CHF 20 million (US$24 million).
Asia Pacific leads regional growth
Asia Pacific was the group's fastest-growing geography, with sales up 10.6% LFL in the first nine months of 2026, compared with 4.6% in the same period a year earlier. Within Taste & Wellbeing, the region rose 7.1% LFL, against a 0.5% decline in the first nine months of 2025.
South Asia, Africa and the Middle East sales increased 4.1% LFL, compared with 8.8% comparable growth a year earlier. Europe rose 1.5% LFL against 3.8% in the prior-year period, and Latin America increased 1.1% LFL, compared with 3.1% in the first nine months of 2025. Overall, high-growth markets rose 7.9%, against 2.7% in mature markets.
North America proved the most challenging region, with a 3.3% LFL sales decrease in Taste & Wellbeing, compared with 3.9% in the first nine months of 2025, although the region grew 1.1% overall. Givaudan did not separate the region's figures by category. The company cited continued weakness in the Health and Functional Business Unit and US tariff refunds made to Givaudan customers during the third quarter of 2026 as the main reasons for the drop.
Givaudan said its first three-quarter figures indicated a persistent appetite for fragrances among both consumers and brands, pointing mainly to continued growth potential in fine fragrances, fragrance ingredient differentiation and premiumisation. The company stressed the consistency of its growth despite geopolitical and macroeconomic volatility, which it said demonstrates market resilience.