DAVY VIEW

Givaudan delivered solid underlying sales growth for Q1, with strong growth in Fragrance activities offsetting a modest decline in Taste & Wellbeing. The business is initiating price increases to offset inflation, particularly inflation relating to freight/logistics. The Middle East impact in the quarter was limited with some supply chain challenges impacting Taste & Wellbeing. Today’s investor conference will provide further focus on Fine Fragrance in the South Asia, Middle East and Africa (SAMEA) region. On first look, we do not envisage a material change to our forecast model in what remains a volatile environment and where the quantum of inflation is hard to forecast.