Gross Profit The gross margin improved from 48.3 percent in the first half of 2004 to 49.3 percent, despite a trend of increasing raw material prices. This improvement is mainly the result of the margin improvement initiatives and consolidation of the flavour production sites in Europe.
Operating Profit In the first half year, EBIT amounted to CHF 282 million compared to CHF 287 million for the same period of last year. The operating margin remained at 20.6 percent, thanks to the improved gross margin.
Cash Flow Cash flow generation remained high. Operating cash flow before investments amounted to CHF 168 million compared to a high CHF 234 million last year, 2004 being mainly influenced by an extraordinary tax credit. Capital spending amounted to CHF 53 million, in line with last year's level.
Net Profit Net profit decreased from CHF 228 million to CHF 208 million, mainly due to higher net financial expenses. Earnings per share decreased slightly from CHF 29.48 to CHF 28.76.
Share Buy Back Programme On 3 May 2005, Givaudan finalised its second share buy back for 800,000 shares. A total of 600,000 shares have already been cancelled by the Annual General Meetings in 2004, and 2005 respectively. The remaining 200,000 shares are foreseen to be cancelled at the next Annual General Meeting in 2006.
On 6 May 2005, Givaudan started a third share buy back programme for 720,000 shares, aiming at reducing the share capital to CHF 64.8 million. The programme will last until 31 May 2006. At the end of June 2005, 24,800 shares have been bought back under this new programme.