Ilaria Resta, Global President Perfumery at Firmenich, the world’s largest privately-owned fragrance and taste company, has been chosen to receive a 2022 CEW Achiever Award by the professional organisation, Cosmetic Executive Women (CEW). CEW, which comprises 10,500 members from 3,500 companies in the beauty industry globally, gives the prestigious award each year to celebrate the most accomplished women in the sector.

Ilaria Resta is the first and only woman to serve as a Global President among the major fragrance houses, having been named to the role in March 2020. An active member of Firmenich’s Executive Team, she has driven an important transformation agenda in the Perfumery business. Her new vision, “Positive Perfumery”, is about turning fragrances into a positive force for consumers’ wellbeing and the health of the planet. She made diversity and women’s leadership one of her key priorities. Firmenich is the 7th company in the world, the first in the Fragrance industry, to be globally certified as a gender equal employer by EDGE, the world’s leading business certification standard for gender equality in the workplace.

Gilbert Ghostine, CEO, Firmenich, said: “I am beyond thrilled that Ilaria has received such a prestigious award. She accomplishes dynamic results through her clear strategic vision, deep retailer understanding and inspirational organizational leadership. A true pioneer, she is an ardent defender of the coaching and promotion of women in business, a cause that is particularly close to her heart. Ilaria has been a driving force behind the great steps Firmenich has taken to ensure its workplace allows women to nurture and reach their full potential, and she personally makes diversity and belonging a priority.”

Ilaria has instigated several strategies to ensure women can access leadership roles:

• Recently hired several new talented women in her leadership team, including Robin Mason, Vice President Fine Fragrance North America; Patricia Nogueira, Vice President Fine Fragrance Latin America; Levenza Toh, Vice President, Perfumery, Southeast Asia, Japan & Korea.

• Created a formal mentoring program where she personally supports the young talents in the Group.

• Sponsored a Wellbeing program for employees and personally shared her stories of coping with mental wellbeing.

A passionate business leader with expertise in brand building, sales, and P&L management, Ilaria had previously acquired more than 22 years of experience with Procter & Gamble. She built iconic brands such as Tide, Ariel, Fairy, Swiffer, Duracell, Pantene, Head & Shoulders, Herbal Essences and Aussie, in global roles as well as leading regional business in Europe, and North America. She has a track record helping business transform crisis into strong success, renewing P&G’s European Hair Care business and, prior to that, restructuring the Duracell business ahead of a successful divestiture. As Senior Vice President, Hair Care, North America at P&G, Ilaria delivered outstanding business results, growing market share and profitability. Ilaria was recognized as 2019 Brand Builder of the Year in the U.S. by WWD, the leading fashion trade journal.

Ilaria Resta commented: “I am honored to receive this award in recognition of my career achievements and my impact on talent development. I have huge respect for CEW, an organization devoted to removing the barriers to women’s progression and ensuring equal opportunity. I am humbled to join so many inspiring, successful women who won this award before me and I want to congratulate the talented women awarded alongside me this year. I am proud to work at Firmenich with an accomplished team of creatives, scientists, business leaders around the world and I am excited about the journey ahead. We are transforming the future of Perfumery, creating a new product portfolio focused on health, well-being and sustainability, built on foundations of creativity, innovation, data and technology. I want to help create a new eco-system, which includes our strategic partners and suppliers, and together produce a bigger impact on equality and inclusivity.”

The award will be given at the 2022 Live Women’s Leadership Awards Luncheon, a ceremony held by CEW in New York City on June 2nd, 2022.

Firmenich International SA, the world’s largest privately-owned Fragrance and Taste company, announces its Half Year Results for the six months ended 31 December 2021. 

Financial Highlights

• Revenue reached CHF 2,241 million, up +12.3% year-over-year at constant currency⁽ⁱ⁾. On a reported basis, Revenue increased +12.2% year-over-year

• EBITDA⁽ⁱⁱ⁾ of CHF 451 million, up +24.9% year-over-year 

• Adjusted EBITDA⁽ⁱⁱⁱ⁾ of CHF 460 million, up +25.3% year-over-year, driven by topline growth across the business and a favorable product mix. Adjusted EBITDA margin, as percentage of revenue, of 20.5%, up +2.1 percentage points year-over-year

• Free Cash Flow⁽ⁱⁱⁱⁱ⁾ of CHF 162 million, down -10.7% year-over-year, driven by working capital impact of higher safety inventories to preserve customer service levels and support our customers in a volatile global supply chain environment

Operating Highlights

• Double-digit revenue growth across both Perfumery & Ingredients and Taste & Beyond divisions, achieving new business wins in a context of improving market conditions

• Growth across all regions, and strong momentum in our key geographies, including Europe (+22.2%), India (+12.9%), China (+10.4%), and North America (+7.0%) 

• Prioritized customer service levels, ensuring safety of supply in a challenging global raw material and supply chain environment 

• Continued to benefit from our ongoing investment in growing segments, key geographies and differentiated offerings, including: Sugar Reduction, Naturals & Renewable Ingredients, Plant-based Foods, Clean & Responsible Fragrances, E-commerce and Digital Channels

• Continued investment in strategic growth markets, opening an end-to-end fragrance and taste co-creation center for customers in South China, and launching construction of a state-of-the-art production hub in Turkey 

• Launched new innovations offering superior performance and active benefits to our fragrances, as well as new renewable ingredients such as Muguissimo™ and 100% natural ingredients including Muguet Firgood™  

• Progressed on our Environmental Social and Governance (ESG) targets for 2025 and 2030. Secured a fourth consecutive Triple “A” rating from CDP, a new industry-leading Sustainalytics ESG risk score of 7.5, in the top 50 companies rated worldwide, and a second consecutive EcoVadis Platinum Sustainability Rating, with an industry-leading score of 88/100, in the top 1% of all companies assessed

“Firmenich has performed solidly in the first half of FY2022, delivering strong revenue growth, despite a challenging global raw material and supply chain environment. We also continue to lead the industry in responsible business, making further progress against our ESG ambitions and achieving the highest global standards in ESG,” said Patrick Firmenich, Chairman of the Board.

“Our focus on creativity, digitalization, customer service and innovation has paid off, as we have delivered double-digit top and bottom-line growth despite global challenges in raw materials, supply chains, and new waves of Covid-19. Since the start of the pandemic, we have demonstrated the resilience of our business and continued to invest in growing segments, key geographies and differentiating technologies. We will continue building strong customer intimacy and delivering superior service thanks to our dedicated workforce, focused innovation and strong vertical integration,” said Gilbert Ghostine, CEO of Firmenich.
 

HY2022 Performance

Revenue

Revenue reached CHF 2,241 million, up +12.3% year-over-year at constant currency. On a reported basis, Revenue increased +12.2% year-over-year. Foreign exchange, in comparison to prior year rates, had a negligible impact on Revenue.

Taste & Beyond delivered an industry-leading Revenue growth of +13.4% at constant currency, with double-digit growth across all segments and strategic initiatives. We made strong progress in our drive to establish strategic partnerships with key customers, to help them win the hearts and minds of consumers through our strengths in innovation, consumer insights, naturals, and “beyond flavors” solutions.

Perfumery & Ingredients Revenue increased +11.7%, at constant currency, driven primarily by strong growth in Fine Fragrance and Ingredients. Fine Fragrance delivered industry-leading growth, surpassing pre-pandemic levels despite ongoing softness in travel retail. This was driven by a combination of restocking and new business wins, thanks to our strong pipeline of innovation aligned with customer needs and our leadership in the prestige segment. In Ingredients, we continued to achieve strong growth momentum, with double-digit revenue growth across the portfolio, on the back of sustained customer demand. Consumer Fragrance revenue decreased marginally, following a strong comparable period the previous year, as end-market softness affected global customers, while raw material shortages and logistical challenges impacted the production capacity of some mid-to-small customers. 

Adjusted EBITDA

Adjusted EBITDA reached CHF 460 million, up +25.3% year-over-year. In comparison to prior year rates, foreign exchange had a favorable impact of CHF 2 million on the Adjusted EBITDA. Excluding the impact of foreign exchange, Adjusted EBITDA would have increased by +24.8% year-over-year.

Adjusted EBITDA margin, as a percentage of revenue, increased to 20.5%, up +2.1 percentage points, driven by topline growth across the business, and a favorable product mix linked to growth in Fine Fragrance, Ingredients and Taste & Beyond. Excluding the impact of foreign exchange, Adj. EBITDA margin would have increased by +2.0 percentage points year-over-year.

Like the rest of the industry, we are facing an increasingly challenging global environment with raw material shortages and cost increases, logistical difficulties, and rising energy prices. We will continue to act proactively to navigate this volatile and inflationary environment.

Free Cash Flow

Free Cash Flow decreased by -10.7% year-over-year to CHF 162 million. Profit growth was offset by unfavorable working capital, linked to higher safety inventories. In line with our prudent execution, we increased safety inventories to ensure we could preserve customer service levels in this volatile global supply chain environment. We remain committed to balancing customer service with solid cash generation. 

Responsible Business

Responsible business is a core part of Firmenich’s values and a source of trust and differentiation for our customers, our investors, and all our stakeholders. Having achieved the ambitious 2020 environmental goals it set after the COP21 Paris climate conference, and announced new commitments for 2025 and 2030, Firmenich has continued its efforts to raise the bar in ESG in its industry. 

This Half Year, Firmenich further improved its Sustainalytics ESG risk rating to 7.5 points, ranking 37th out of nearly 15,000 companies rated worldwide, and number 1 in the Chemicals industry.

Firmenich also received a CDP Triple “A” rating for the fourth consecutive year, one of only two companies in the world to achieve this. 

Firmenich achieved the highest EcoVadis rating, Platinum, for the second time in a row with a score of 88/100. EcoVadis awarded Firmenich its best score ever, ranking Firmenich in the top 1% among the 85,000+ companies evaluated worldwide since 2009, and the leader in our industry.

Firmenich was ranked 10th out of 350 companies in the World Benchmarking Alliance Food & Agriculture Benchmark. The Food and Agriculture Benchmark measures and ranks keystone companies on key issues underpinning the food systems transformation agenda in line with the United Nations Sustainable Development Goals (SDG). 

Also, Firmenich’s DRT Ingredients business won the France Chimie ESG Innovation Award for Dertal® renewable bioliquids, sustainable alternatives to heavy fuel and mineral oils to generate green heat, steam and power. This award recognizes the creativity and impact of our initiatives, demonstrating our strong commitment to sustainability and responsible resource management. 

Disclosure

This information is provided by Firmenich International SA pursuant to the EU Market Abuse Regulation 596/2014 and the Swiss FMIA. The information was submitted for publication, through the contact persons set out below, at 7:00 CET on 10 February 2022. Further information is available for investors on https://investors.firmenich.com.

Firmenich, the world’s largest privately-owned fragrance and taste company, and Finlays, a leading supplier of tea, coffee and botanical solutions, have entered an agreement giving Firmenich full sales rights to Finlays’ European tea and coffee extracts portfolio in Europe, effective immediately.

 
“We are very excited about this partnership,” said Karel Stoschek, SVP, Europe of Firmenich’s Taste & Beyond business. “Our customers will benefit from Firmenich and Finlays’ combined expertise in product development, streamlining their own innovation and new product development process and helping to create even better products that tap into the natural, wellbeing and sustainability consumer megatrends.”

As a part of this new agreement, Firmenich will focus on commercializing two core parts of Finlays’ extracts business in Europe: its world-leading Cold Brew Coffee portfolio and its Tea Extract portfolio. The Cold Brew Coffee portfolio serves a rapidly growing segment within the European region, and is crafted using a proprietary process which delivers a distinctly smooth, rich flavor experience. Finlays’ Tea Extract portfolio includes The Wellbeing Collection, a range of premium, all-natural tea extracts which are rich in bioactive compounds associated with various health benefits. These extracts are sustainably sourced from Finlays’ own tea farms, with on-site extraction facilities that enable tea leaves to be harvested and extracted on the same day, thereby preserving their fresh flavor and natural bioactive composition.

“Firmenich and Finlays are joining forces at a time when consumer demand for healthier, natural ingredients has never been higher,” said Rachel Jones, Finlays Group Head of Business Development. “Firmenich’s strong market coverage, deep understanding of taste and application know-how will enable Finlays products to reach a broader audience in Europe, helping the food & beverage industry develop innovative recipes featuring tea and coffee ingredients to meet evolving customer expectations.”

Under the new agreement, Firmenich is responsible for the full sales process, from commercial relationship to brief management, supported by the Finlays team. The partnership focuses exclusively on Finlays’ ranges of tea and coffee extracts, and covers European markets only. 

“The world of natural beverages is a dynamic hotbed of innovation and offers countless opportunities for sustainable growth,” said Guy Chambers, Finlays Group Managing Director. “Our new partnership with Firmenich supports Finlays’ mission of bringing the best from bush to cup and will help us to deliver distinctive and exciting solutions for customers in Europe.”

“Firmenich and Finlays are both privately owned and share a similar, Purpose-driven mission of creating healthier food and beverages made from natural and sustainable ingredients”, said Amaury Roquette, Firmenich VP, Naturals Platform, Creation and Portfolio. “This partnership further reinforces Firmenich’s commitment to accelerate global diet transformation by helping to create healthier, great-tasting food & beverages with more natural and sustainable ingredients to enhance wellbeing for people & planet.”