IFF achieves robust sales in Q2
09 Aug 2017 --- International Flavors & Fragrances Inc earnings gained ground in the second quarter as income climbed slightly with the company reporting “a strong sales performance”.
Reported net sales for the second quarter totaled US$842.9 million, an increase of 6 percent from US$793.5 million for the second quarter of 2016.
Excluding the impact of foreign exchange, currency neutral sales increased 8 percent over the prior year, including approximately six percentage points related to the company’s recent acquisitions.
Reported operating profit for the second quarter was US$159.1million versus US$164.7 million reported in 2016. Excluding the impact of foreign exchange and those items that affect comparability, currency neutral adjusted operating profit grew 6 percent, to US$171.8 million, principally driven by acquisitions, volume growth, and productivity initiatives, according to the company.
Reported earnings per share (EPS) for the second quarter was US$1.38 per diluted share versus US$1.46 per diluted share reported in 2016.
Excluding the impact of foreign exchange and those items that affect comparability, currency neutral adjusted EPS improved 8 percent, to US$1.50 per diluted share, benefiting from a year-over-year reduction in shares outstanding.
“Our second quarter results finished in line with our expectations, with improved trends across several of our key financial metrics,” said IFF Chairman and CEO Andreas Fibig.
“We continued to advance our strategy as we drove innovation, executed our productivity programs, and benefited from acquisitions. These improvements reflect significant efforts across our entire organization as we implement our long-term strategy and generate strong returns for our shareholders.”
Second quarter 2017 strategic highlights
Other highlights include sweetness and savory modulation portfolio sales improved strong double-digits; flavors Latin America grew strong double-digits.
The company rolled out new flavor modulator for its flavorists’ to use in formulation development and launched new fragrance ingredient, Veraspice, to further drive differentiation.
Meanwhile, North America sales +19 percent, inclusive of IFF’s recent acquisitions, while Middle East & Africa showed strong double-digits led by growth in both flavors & fragrances.
Outlook
“Looking forward, we expect second half performance to see improved year-over-year organic sales growth and additional savings related to the productivity program we announced earlier this year. For the full year, we remain optimistic that we can achieve our previously stated currency neutral guidance,” adds Fibig.
