Zurich, Oct 9 - Swiss flavours and fragrances maker Givaudan AG showed signs of emerging from recession as customers warily rebuild stocks, helping its nine-month sales meet forecasts and boosting the stock.
Givaudan, which makes ingredients for designer perfumes such as Calvin Klein and Burberry, confirmed on Friday its previous forecast to outgrow the broader market for 2009.
"We believe the worst is over for the company and, while we are concerned about the impact of forex headwinds in the next couple of quarters, see some room for positive tweaking of estimates," said Kepler Capital Markets analyst Jon Cox.
The group said customer destocking in its fragrance ingredients unit, which was prevalent in the first half of the year as people spent less on expensive perfumes, appears to have ended.
Shares rose 3.1 percent to 820 francs by 0726 GMT, versus a 0.3 percent gain in the DJ Stoxx European chemicals sector.
The maker of ingredients for soaps, confectionery and soft drinks has escaped much of the impact of recession, despite customers running down stocks in the first half.
Nine-month sales fell 4 percent to 3.0 billion Swiss francs ($2.9 billion) in the first nine months of 2009, hit by the weak U.S. dollar.
The stock trades at about 14 times forecast 2010 earnings, roughly in line with rivals International Flavors and Fragrances and Symrise.
The groups also compete with Firmenich in the $20 billion flavours and fragrances market, supplying companies like Donna Karan and Givenchy.
Givaudan had been expected to post sales of 3.0 billion francs in the first nine months, according to a Reuters poll of 11 analysts.