Givaudan once again increased its sales in the first half of 2025. The industry leader benefited above all from growth in fragrances. Profitability was also slightly higher again. Sales rose by 3.4 per cent to 3.86 billion CHF from January to June, as the supplier of flavours and fragrances for food, perfumes, household and personal care products revealed on Tuesday. In organic terms, i.e. adjusted for acquisitions and disposals as well as currency effects, Givaudan grew by 6.3 per cent. The medium-term target range for organic growth of 4 to 5 per cent was thus still clearly exceeded, although it fell slightly short of analysts' expectations. Profitability also increased in line with the higher sales volumes. The operating result (EBITDA adj.) climbed by 4.7 per cent to CHF 973 million. The corresponding margin thus increased from 24.8 per cent to 25.2 per cent. Net profit was 0.7 per cent higher at CHF 592 million. As usual, Givaudan is not providing a concrete outlook for the current year. However, the medium-term targets remain unchanged. Accordingly, Givaudan is aiming for organic sales growth of at least 4 to 5 per cent per year. In addition, free cash flow should amount to at least 12 per cent of sales.

The Swiss stock market ended trading slightly lower on Monday. The SMI lost 0.4 per cent to 11,937 points. Among the 21 SMI stocks, there were twelve losers and nine gainers. A total of 17.1 (previously: 24.13) million shares were traded. The SMI was weighed down by the heavyweights Nestlé (-0.9%), Novartis (-0.8%) and Roche (-1.1%). Roche will present its figures for the second quarter on Thursday. The pharmaceutical company also suffered a setback with its drug candidate Asteogolimab for the treatment of chronic obstructive pulmonary disease (COPD). The drug achieved only mixed results in two clinical trials. In a phase 3 trial, the main objective was missed. A critical analyst comment pushed Richemont's share price down by 1.2 per cent. After the luxury goods group presented strong results last week, RBC now forecast pressure on margins due to unfavourable exchange rates and higher gold prices. Meanwhile, Citigroup was optimistic about ABB's earnings prospects and upgraded the share to ‘buy’. The share price increased by 0.7 per cent. Givaudan advanced 1.2 per cent on the day before the presentation of figures for the first half of the year. Among small caps, Lindt & Sprüngli (+0.5 per cent) and Julius Baer (+1.5 per cent) are reporting their first-half results on Tuesday.

Europe
The European stock markets closed mixed on Monday, at the start of a week in which corporate earnings, trade negotiations and the meeting of the European Central Bank (ECB) will dominate investors' attention. The Stoxx Europe 600 index fell by 0.1% to 546.6 points. In Paris, the CAC 40 and SBF 120 lost 0.3% each. By contrast, the DAX 40 gained 0.1% in Frankfurt and the FTSE 100 added 0.2% in London. STELLANTIS (+1.6%): the car manufacturer posted first-half sales of 74.3 billion euros and recurring operating income of 500 million euros, but posted a net loss of 2.3 billion euros, according to preliminary unaudited figures published on Monday. While the group had suspended its financial forecasts on 30 April, this publication ‘aims to correct the gap between analysts' consensus forecasts and the company's performance’, explained Stellantis. The CFO of Stellantis confirmed on Monday that he expected the US tariffs to have an impact of between €1 billion and €1.5 billion on the group's results in 2025. TF1 (down 6.7% to €8.14): Kepler Cheuvreux has lowered its recommendation on the broadcasting group's shares from ‘buy’ to ‘hold’ and its target price from €10 to €9.50. COVIVIO (+3.9%): the property company has raised its recurring net profit target for 2025, after recording like-for-like revenue growth in the first half. ATOS (+2.7%): the IT services group announced on Sunday evening that its total cash position was estimated at €1.80 billion at the end of June, down by €374 million compared with the end of December 2024.

United States
Stocks were mixed Monday as Wall Street monitored the latest trade developments, digested a number of earnings reports, and looked ahead to quarterly updates later this week from Tesla and Alphabet. The Nasdaq Composite and S&P 500 still managed record closing highs. Sarepta Therapeutics was down 5.4% after sinking 36% on Friday. The drugmaker refused a request from the Food and Drug Administration to stop shipments of its gene therapy Elevidys over safety issues. Verizon Communications gained 4% as second-quarter earnings topped analysts’ expectations and the telecommunications giant raised its earnings and free cash flow guidance for 2025. Block rose 7.2% after it was announced Friday that the financial technology company formerly known as Square would be joining the S&P 500 before the start of trading Wednesday. Block will replace Hess following Chevron’s purchase of the energy company on Friday. Robinhood Markets and AppLovin, both prime candidates for admission into the benchmark index, were down 4.9% and up 0.5%, respectively. Domino’s Pizza Domino’s Pizza was down 0.8%. The pizza chain reported second-quarter earnings of $131.1 million, or $3.81 a share, compared with $142 million, or $4.03 a share, a year earlier. Shares of Cleveland-Cliffs surged 12% after the steel maker posted an adjusted loss of 50 cents a share in the second quarter, narrower than analysts’ estimates. Trump Media & Technology Group climbed 3.1% after the Truth Social parent, which is majority owned by President Donald Trump, said it had accumulated about $2 billion in Bitcoin and Bitcoin-related securities as part of its previously announced crypto treasury strategy. Bruker shares tumbled 12% after the maker of scientific instruments posted preliminary second-quarter earnings and revenue that missed Wall Street estimates. Shares have fallen 39% this year.

Asia
The stock markets in East Asia and Australia are largely treading water on Tuesday. The Kospi in Seoul recorded the biggest decline in the region with a drop of 1.0 per cent. The Nikkei-225 fell by 0.4 per cent in reaction to the results of the Upper House election at the weekend, in which Prime Minister Shigeru Ishiba's ruling coalition lost its majority. There are slightly positive signs on the Chinese stock markets. The Shanghai Composite is up 0.3 per cent and the Hang Seng Index added 0.2 per cent. In Australia, the S&P/ASX 200 is little changed.

Bonds
Long-dated U.S. government debt yields slipped on Monday. The 10-year Treasury note yield dropped by 6 basis points to 4.37%. Uncertainty over the tariff policy supported the bond market to some extent, according to analysts. Jefferies estimates two US interest rate cuts by the end of the year.

Analysis
UBS upgrades Comet target to CHF 315 (274) - Buy
UBS raises Schindler target to CHF 325 (285) - Buy
Deutsche Bank lowers Sika target to CHF 271 (284) - Buy