Givaudan predicts: Spice prices will rise

Recently, after Givaudan announced its results for the first half of 2020, its chief financial officer accepted an interview with foreign media and predicted that spice prices will continue to rise. In addition, the company's profits in the second half of the year will decrease.
 
Givaudan’s Chief Financial Officer Tom Hallam said in an interview that 85% of the company’s business activities remained resilient during the COVID-19 pandemic, with only the remaining 15%-high-end perfume and catering fragrance business Take a hit.
 
Regarding Givaudan’s first-half results, Haarlem revealed that after the first quarter, the company’s business in China has rebounded strongly. All factories are currently operating, able to meet consumer demand, and there are no major concerns about customer payments.
 
Haarlem said that the current market demand in Latin America is strong, because local consumers are hoarding a large amount of packaged food and daily necessities.
 
However, he predicts that Givaudan's profits will decrease in the second half of the year. "Generally speaking, our profits in the second half of the year will be lower."
 
Haarlem also pointed out that as India is trapped by the epidemic, the price of spices will continue to rise in the future.
 
Givaudan reiterated that it will maintain its goal of 4%-5% average annual sales growth in the "five-year cycle". This year is the last year of the cycle.
 
The company will announce its new growth targets for 2021-2025 at the "Investor Day" event in August. Its growth focus remains high-growth markets, local and regional customers, and natural fragrances.
 
Givaudan said it will maintain its dividend payout practices and continue to acquire small and medium-sized flavors and fragrances companies.