IFF - Double Digit Growth

04/05/07 International Flavors & Fragrances Inc. has reported double-digit growth in sales and net income for the first quarter of 2007. Earnings per share were $.69 in the quarter, representing an increase of 19% from the first quarter of 2006.

"IFF is off to a solid start in 2007 with double-digit increases in sales and net income," said Robert M. Amen, Chairman and Chief Executive Officer of IFF. "We continue to make progress toward the financial goals we outlined for 2007-2009 by strengthening our customer focus and executing on our plans.

"IFF has a strong reputation for creativity and research, as well as consumer insight and brand understanding. These attributes are significant competitive differentiators for IFF and are key to providing our customers with winning solutions. We believe that these capabilities, coupled with the positive trends we are seeing in our markets, will enable us to deliver sustainable growth over time."

Sales rose 11% in the first quarter to $566 million compared to $511 million in the prior year period; flavour and fragrance sales each increased 11%. Sales for the quarter reflect the generally weaker U.S. dollar, mainly against the Euro and Pound Sterling; at comparable exchange rates, sales would have increased 6%.

The increase in total fragrance sales was driven by higher fine fragrance and beauty care, and fragrance ingredient sales of 11% and 17%, respectively. The growth in fine fragrance and beauty care was driven by new product introductions, while ingredient sales growth was mainly volume related. Functional fragrance sales increased 5% on a combination of new wins and improved volumes.

Flavour sales increased 11%, due to new wins and volume growth. In addition, flavour sales increased in each region, both in local currency and in dollars.