Friday, 11 October 2024 Reading time : 2 minutes

The luxury fragrance business is thriving, as Givaudan's latest sales figures show. In the first nine months of the year, the Swiss manufacturer of fragrances and flavours increased its sales significantly (+13% year-on-year), exceeding already high market expectations. The growth in fine fragrances is particularly noteworthy, with sales up 17.8% compared to last year.

Following strong growth in the first half of the year, Givaudan's success story thus continues. The stock market is rewarding the positive development: since the beginning of the year, Givaudan shares have gained around 29% (total return), making them one of the top performers in the SMI (+12%) and the SPI (+10.6%). 

However, stocks of chemical manufacturers are not only a source of joy for investors. Sika, for example, is having a tough time. Founded in Zurich in 1910, the specialty chemicals company now has a global presence, supplying the construction and manufacturing industries with building chemicals and adhesives. 

Although business has been robust so far this year, as half-year earnings show, the market environment remains challenging due to the weakness in the global construction industry. Investors therefore remain sceptical for the time being: since the end of September Sika shares have been on a downward trend and are now trading lower than at the beginning of the year. Sika will present its next results on 25 October.

The investment in Clariant also requires strong nerves. The specialty chemicals group is broadly positioned and supplies numerous sectors, including the agricultural and cosmetics industries, the construction and automotive sectors as well as the electronics and energy industries. Clariant shares performed well in the first semester. However, following the release of its half-year results, the company lowered its full-year sales forecast, causing the share price to fall. Equities are currently trading 5.3% higher year to date. Clariant will provide the next insight into its business performance on 29 October.

Barrier Reverse Convertible on Swiss Chemical Companies
8.60% p.a BRC on Givaudan, Clariant, Sika
Barrier: 68%
Valor: 134 141 061

Indicative terms

Disclaimer
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