Swiss firm expects more demand for perfume products

686
2

ZURICH, Aug 6 - Firmenich expects continued strong demand for the rest of 2021 after the Swiss manufacturer of scents including Ariana Grande's R.E.M, Calvin Klein's CK One and Yves Saint Laurent Black Opium reported accelerating sales growth in the first six months.

Privately - held flavours and scents firm Firmenich, which compete with Givaudan, Symrise and IFF, said on Friday that its revenue rose 10.2% to 4.27 billion Swiss francs in the year to June 30.

Firmich, whose clients include Bulgari, Gucci and Avon, said it had also experienced an acceleration in revenue growth in the first six months of 2021, with a strong rebound in fine fragrances, with sales up 39% compared to 9% in the year before.

The fragrances are an affordable luxury, they are not expensive items and they give you warmth and make you feel good, Chief Executive Gilbert Ghostine told Reuters.

I think the new fragrance growth will continue to be solid customers and retailers are restocking after running down their supplies, and everyone is preparing for Christmas new launches of products, Ghostine added.

Ghostine cautioned of a rapid recovery in the sale of perfumes at airports and airlines, a key sales channel, which he said would not fully recover before mid-2023.

During its financial year, Firmenich's adjusted earnings before interest, tax, depreciation and amortisation declined 5% to 816 million francs as its margin fell.

Ghostine said the company would reverse this.

Ghostine is confident and well positioned to expand organic growth and drive profitable profitability over the next six months, said Andrew.

The Geneva-based company, owned by the fifth and fourth generation of the Firmenich family, has no intention of listing, he added.

Our company has been in private for the last 126 years and shareholders are proud of the company and want to remain independent. This formula has worked, said Ghostine.