DAVY VIEW

We update our Givaudan model for FY25 and FY26. The adjustment reflects a more cautious stance on end market demand and inventory management for Q4, principally relating to the Taste & Wellbeing (T&W) division. The net impact is a reduction in our group 2025 like-for-like (LFL) revenue forecast of 30bps to 5.1%, below management’s prior expectation of 5.5%. For 2026, we now model LFL revenue growth of 2.9% from 3.3%, underpinned by an assumption of continued subdued market growth. We remain constructive on margin. We revise lower our forecast EBITDA for FY25 and FY26 by 0.5% (to CHF1,835.8m) and 0.6% (to CHF1,887.6m) respectively.