Buy signal on Givaudan (GIVN-CH)
Givaudan is a CHF35.6 Bn market cap and one of the world's leading producers of flavors and fragrances. Revenue is split between :
- Flavors (55% of sales) intended for the production of savory desserts (38% of turnover; prepared meals, snacks, soups and sauces, meats and poultry), drinks (32%; sodas, fruit juices, drinks instant), confectionery (17%) and dairy products (13%);
- Perfumes (45% of sales) intended for the manufacture of cosmetic products and consumer products (hygiene products, household products, etc.).
Givaudan is a quality growth business with a defensive profile as more than half of the business is derived from Food & Beverage, while the other part is derived from the Household goods industry.
The EPS growth per year reach 10% on average, thanks to the operating margin ramping up (16.4% expected in 2021) coupled with mid single digit organic growth. Givaudan also proceeds to selective acquisitions on a regular basis and currently offers a 1.7% dividend yield.
Short term catalyst :acquisitions, India exposure.
This signal looks consistent with the Major Bullish Trend in the European Food & Beverage sector.