UPDATE 1-Emerging market demand helps Givaudan Q3 meet forecasts

2014-10-11

* Confirms mid-term goals

* Fragrance sales grow faster than flavours in Q3 (Adds details)

ZURICH, Oct 10 (Reuters) - Givaudan SA, the world's biggest maker of flavours and fragrances, said like-for-like sales rose 4.3 percent in the third quarter as strong demand in emerging markets helped it offset a weaker performance in Europe and North America.

The Swiss group is seeing healthy growth in emerging markets where rising middle classes fuel demand for flavours enhancing the taste of chicken or lemonade and fragrances used in perfumes, washing powder or cosmetics.

Sales at the group were 1.12 billion Swiss francs ($1.17 billion) in the third quarter, in line with estimates in a Reuters poll.

In Swiss francs, sales increased 2.6 percent, held back by the impact of the strong Swiss currency.

The company confirmed its target to grow underlying annual sales by 4.5-5.5 percent over the mid-term, even though third-quarter sales growth of 4.3 percent fell slightly short of this range.

For the first nine months of the year, sales increased 4.5 percent on a like-for-like basis.

Third-quarter sales at the group's fragrance division rose 4.8 percent to 553 million francs, while sales at the flavours unit were up 3.9 percent to 569 million francs, buoyed by strong double-digit gains in Latin America, Givaudan said.

German fragrance and flavours maker Symrise publishes its third-quarter report on Nov. 13.

Shares in Givaudan, which have risen 17 percent so far this year, trade at 21.9 times forward earnings, at a discount to Symrise at 22.8 times and a premium to U.S. peer International Flavors & Fragrances at 17.6 times.

($1 = 0.9532 Swiss franc)