Geneva (Switzerland], August 5 (ANI/PRNewswire): Firmenich International SA, the world's largest privately-owned Fragrance and Taste company, announces its Full Year Results for the 52 weeks ended 30 June 2022. Financial Highlights Revenue of CHF 4,723 million, up +11.1 per cent [1] Adjusted EBITDA of CHF 905 million, up +10.9 per cent Adjusted EBITDA margin 19.2 per cent, up +10 basis points Free Cash Flow of CHF 414 million, down -19.1 per cent, or -5.9 per cent on a comparable basis[2] EBITDA to Free Cash Flow conversion ratio of 51.8 per cent Record Revenue and Adjusted EBITDA, despite a challenging global environment for raw materials, logistics and energy costs Outperforming the industry in topline growth and gaining market share, underpinned by double-digit Revenue growth across both Perfumery & Ingredients and Taste & Beyond, on the back of improving customer demand Revenue growth across all regions, and strong momentum in our key geographies, including Europe (+18.9 per cent), India (+13.1 per cent), China (+9.4 per cent), and North America (+5.1 per cent) Strong cash generation, despite higher safety inventories linked to prioritizing customer service of supply in a challenging global environment "Firmenich's strong performance in FY22 is the result of our ongoing commitment to serve and innovate with our customers and a testament to the strengths of our offerings across Fragrance and Taste. We are now moving to a new chapter in our history, with the announced merger with DSM, and I am pleased to see that our company is entering this new phase from a position of strength.", said Patrick Firmenich, Chairman of the Board. "Despite the ongoing challenging macro-economic environment, Firmenich has delivered another year of strong results, with double digit growth in Revenue and Adjusted EBITDA. We have demonstrated leadership and excellence in execution. As always, I want to thank our 11,000 employees who have made this possible. I look forward with excitement to the coming year, which marks the start of a new chapter for Firmenich.", said Gilbert Ghostine, CEO of Firmenich. Operating Highlights Continued to prioritize customer supply, preserving superior OTIF[3] service levels, in a particularly challenging global raw material and supply chain environment Benefited from our ongoing investment in growing segments and differentiated offerings, including Sugar Reduction, Naturals & Renewable Ingredients, Plant-based Foods, Clean & Responsible Fragrances, e-commerce and digital channels Continued investment in strategic markets, highlighted by the move to majority ownership of ArtSci in April 2022 to better serve the high-growth Chinese taste market Ongoing strategic investment in innovation: Announced a Scientific Advisory Board in May 2022 to oversee our R&D strategy Inaugurated a state-of-the-art Creation & Development Centre at Dubai Science Park, to further expand science and innovation capabilities Launched new biodegradable ingredients such as Muguissimo and 100 per cent natural ingredients including Muguet Firgood Raising the bar in ESG: improved our industry-leading Sustainalytics ESG risk score to 7.5, in the top 50 companies rated worldwide; recognized as one of the 2022 World's Most Ethical Companies by Ethisphere; secured a fourth consecutive Triple "A" rating from CDP; and a second consecutive EcoVadis Platinum Sustainability Rating, with an industry-leading score of 88/100, in the top 1 per cent of all companies assessed FY 2022 Performance In Fiscal Year 2022, we saw the global economy enter a challenging raw material and supply chain environment, compounded by high geopolitical instability, and new waves of Covid-19 in various regions. Against this backdrop, we delivered record Revenue growth across the business, as well as double-digit Adjusted EBITDA growth and strong cash generation. We navigated this challenging environment with agility, prioritizing service and safety of supply for our customers. Our trustworthiness as a commercial partner, combined with the competitive advantage provided by our supply vertical integration, has helped us continue to gain market share. Revenue Revenue increased +11.1 per cent, reaching CHF 4,723 million. Acquisitions contributed CHF 6 million or +0.1 percentage points to Revenue growth. Foreign exchange had an unfavorable impact of CHF -29 million or -0.7 percentage points, mainly due to the appreciation of the US dollar and the depreciation of the Euro relative to the Swiss Franc. On a reported basis, Revenue increased +10.5 per cent year-over-year. Perfumery & Ingredients Revenue increased +11.3 per cent, driven by the industry-leading growth and market share gains in Fine Fragrance (+32.5 per cent), and strong customer demand in Ingredients. Consumer Fragrances grew by low single-digits against a backdrop of industry-wide softness. Taste & Beyond Revenue increased +10.7 per cent, driven by our innovation portfolio and our commercial focus on strategic partnerships with key customers. Our differentiated offering in Sugar Reduction, Naturals & Renewable Ingredients, Plant-based Foods, and Clean & Responsible Fragrances continued to drive growth. We continued to outperform our key competitor, as a leader in our industry. In the second half of the Fiscal Year, we delivered double-digit Revenue growth of +10.0 per cent, maintaining the momentum that we had at the beginning of the year. During FY22, on a geographical basis, we achieved strong Revenue growth across all regions and strong momentum in our key geographies, including Europe (+18.9 per cent), India (+13.1 per cent), China (+9.4 per cent), and North America (+5.1 per cent). Gross Profit and Adjusted EBITDA Like the rest of the industry, we have witnessed significant inflationary pressure on raw materials, energy and transportation costs, which accelerated in the second half of the year, as well as new waves of Covid-19 affecting various geographies. We have also faced an unfavorable evolution of foreign exchange rates, linked primarily to the strengthening of the Swiss franc against the Euro and other trading currencies. We took proactive actions to mitigate the negative effect of these challenges, including pricing in partnership with our customers, and cost discipline. Gross Profit reached CHF 1,847 million, up +5.0 per cent on a reported basis. Gross Margin, as a percentage of Revenue, decreased by -210 basis points compared to the previous year, to 39.1 per cent. Adjusted EBITDA increased by double-digits to CHF 905 million, up +10.9 per cent year-over-year. Excluding the impact of acquisitions and foreign exchange Adjusted EBITDA would have increased by +13.1 per cent. Including the 12-month impact pro-forma impact of acquisitions, Adj. EBITDA was CHF 916m. Adjusted EBITDA margin, as a percentage of Revenue, increased to 19.2 per cent, up +10 basis points compared to the previous year. Excluding the impact of acquisitions and foreign exchange, Adjusted EBITDA margin would have increased by +30 basis points. EBITDA was CHF 798 million, down -8.6 per cent year-over-year, due to the impact of non-recurring expenses linked to the DSM-Firmenich merger. Excluding the impact of acquisitions, foreign exchange and non-recurring expenses related the DSM-Firmenich merger, EBITDA would have increased by +3.2 per cent. Free Cash Flow We delivered strong free cash flow generation, reaching an EBITDA to Free Cash Flow conversion ratio of 51.8 per cent, while prioritizing customer service levels and security of supply in a challenging global raw material and supply chain environment. Free Cash Flow decreased by -19.1 per cent year-over-year to CHF 414 million. On a comparable basis, excluding CHF 72 million of exceptional items that positively affected Free Cash Flow in the previous year, Free Cash Flow decreased by -5.9 per cent. Profit growth was offset by unfavorable working capital, linked to CHF 242 million of higher inventories, as a result of higher safety stocks to preserve customer service, as well as raw material cost inflation. We will contin