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Net profit fell to 440 million Swiss francs ($453.51 million), Givaudan said in a statement, surpassing a 413 million franc estimate in a Refinitiv poll.
But the operating margin declined to 17.3% from 18.2% in the year-ago period, Givaudan said.
High raw material costs are a headache for fragrance and flavour makers and Givaudan said it was on track to increase prices with its customers to fully compensate for the higher costs.
Sales rose 8.3% or 6.2% on a like-for-like basis to 3.652 billion Swiss francs, ahead of a 3.221 billion franc estimate in the poll.
The competitive landscape for flavours and fragrances was shaken up recently by Dutch specialty chemicals maker DSM’s merger with Swiss flavour and fragrance maker Firmenich that will create a new player with about 11.4 billion euros in combined 2021 revenue.
Analysts said the deal might trigger further consolidation and could force Givaudan to sharpen its profile and explore new areas like pet food.
The company confirmed its mid-term targets of 4-5% organic sales growth on average per year until 2025.
($1 = 0.9702 Swiss francs)
