Zurich, Oct 8 - Swiss flavours and fragrances maker Givaudan AG reported a small increase in nine months sales, showing resilience in the face of an economic slowdown despite the pain of a stronger Swiss franc.
Givaudan, which makes ingredients for soaps, confectionery, soft drinks and designer perfumes, also sounded an upbeat note about the future on Wednesday, saying it again expects to grow above the market from 2009 onward.
"A shade above consensus, the result was generally reassuring," said Florian Gaiser, analyst at Landsbanki Kepler.
Givaudan shares fell 0.7 percent to 879.00 Swiss francs by 0715 GMT, significantly outperforming the European chemicals sector , which fell 4.5 percent.
Nine-month sales at the maker of ingredients for designer perfumes like Calvin Klein and Burberry rose 1 percent to 3.15 billion francs ($2.76 billion), in line with forecasts.
The company had been expected to post nine-month sales of 3.14 billion francs, according to a Reuters survey.
It was a "strong performance", JP Morgan analysts said in a note, adding that the key to positive sentiment would be evidence that Quest synergies are being delivered at the bottom line.
The Geneva-based company, digesting the 2007 acquisition of Quest International from ICI, now aims for an additional 620 million francs of sales on top of market growth between 2009 and 2013, stemming partly from a bigger share in developing countries.
"Given the deteriorating macroeconomic situation and a clear step-up in guidance once the Quest integration is largely completed, Givaudan is one of our top picks in the Swiss consumer space in 2009," Kepler's Gaiser said.
Givaudan said it expects to reach similar margins to before its acquisition of Quest by 2010, repeating an earlier forecast.
Givaudan trades at 19 times forecast 2009 earnings, according to Thomson Reuters data, ahead of U.S. rival International Flavors and Fragrances Inc at 12.