Debt information
Givaudan’s financial position remained solid at the end of the year. Net debt at December 2020 was CHF 4,040 million and the leverage ratio was 50%.
Balanced debt profile
Credit ratings
In 2018 we received our first credit ratings, and the strong investment confirms the Company’s market leadership position and strong financial profile:
- S&P global ratings: A- credit rating, with a stable outlook
- Moody’s investors Service: Baa1 rating, with stable outlook
Credit rating as per June 2020:
| Company | Givaudan SA |
| SA&P short-term rating | A-2 |
| S&P long-term rating | A- |
| S&P outlook | stable |
| Moody's rating | Baa1 |
| Moody's outlook | negative |
Debt
The Group entered into the following debt.
| Issuer | Issue date | Type of debt | Currency of principal |
Principal amount in millions |
Redeemable | Interest rate | Type of interest |
2020 | 2019 |
| in millions of Swiss francs | |||||||||
| Givaudan SA | 2011 | Public bonds | CHF | 150 | 07-12-2021 | 2.125% | fixed | 150 | 149 |
| Givaudan United States, Inc. | 2012 | Private placements a |
USD | 40 | 06-02-2020 | 2.740% | Reimbursed | 39 | |
| 150 | 06-02-2023 | 3.300% | 132 | 145 | |||||
| 60 | 06-02-2025 | 3.450% | 53 | 58 | |||||
| Givaudan SA | 2014 | Public bonds | CHF | 100 | 18-09-2020 | 1.000% | Reimbursed | 100 | |
| 150 | 19-03-2024 | 1.750% | 150 | 150 | |||||
| 2016 | 100 | 07-12-2022 | 0.000% | 100 | 100 | ||||
| 200 | 05-12-2031 | 0.625% | 200 | 200 | |||||
| 2017 | Private placements |
EUR | 100 | 20-12-2022 | - | floating c | 108 | 108 | |
| 200 | 20-12-2024 | 1.331% | fixed | 216 | 217 | ||||
| 2018 | Public bonds | CHF | 150 | 09-04-2020 | - | floating | Reimbursed | 150 | |
| 200 | 09-04-2025 | 0.375% | fixed | 200 | 200 | ||||
| EUR | 500 | 17-09-2025 | 1.125% | 538 | 540 | ||||
| 800 | 17-09-2030 | 2.000% | 861 | 864 | |||||
| 2019 2020 |
Group bank credit facility |
CHF | 600 180 |
26-06-2023 | - | floating c | Reimbursed | 600 | |
| 2020 | Public bonds | 150 | 10-11-2028 | 0.150% | fixed | 150 | |||
| Givaudan Finance Europe BV | 2020 | Public bonds | EUR | 500 | 22-04-2027 | 1.000% | fixed | 537 | |
| 500 | 22-04-2032 | 1.625% | 538 | ||||||
| Other entities | 2019 2020 |
Other local Borrowings |
EUR | 7 (2019) 6 (2020) |
Various maturities | 1.180% | fixed | 6 | 8 |
| CNY | 426 (2019) 714 (2020) |
- | floating | 97 | 59 | ||||
| Other | - | 1 | 3 | ||||||
| Total short-term and long-term debt as at 31 December b | 4,037 | 3,690 | |||||||
a) There are various covenants contained in these transactions covering conditions on net worth, indebtedness and EBITDA ratio to net interest expense of Givaudan United States, Inc. The Company is and has been in full compliance with the covenants set.
b) The fair value of the short-term and long-term debt exceeds its carrying value by approximately 9% as at 31 December 2020.
c) The floating interest rate is based on a Libor rate.
Capital management
The objective of the Group is to maintain the ability to continue as a going concern whilst maximising shareholder value through an optimal balance of debt and equity.
| 2020 | 2021 | |
| Short-term debt | 206 | 335 |
| Long-term debt | 4,245 | 3,796 |
| Less: cash and cash equivalents | (411) | (452) |
| Net debt | 4,040 | 3,679 |
| Total equity attributable to equity holders of the parent | 3,490 | 3,640 |
| Remeasurement of post-employment benefit obligations | 484 | 525 |
| Equity | 3,974 | 4,165 |
| Net debt and equity | 8,014 | 7,844 |
| Leverage ratio | 50% | 47% |