IFF Reports Third Quarter 2024 Financial Results

authorIntellectia.AI2024-11-06
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IFF.N
Illustration by Intellectia.AI

IFF Reports Third Quarter 2024 Financial Results

International Flavors & Fragrances Inc. (NYSE:IFF) released its financial results for the third quarter ending September 30, 2024.

Key Financial Metrics

Financial Metric Q3 2024 YoY Change Estimate
Revenue $2.93 billion +4% $2.83B
Adjusted EPS $1.04 +17% $1.08
Reported EPS $0.23 - -

IFF reported a net sales increase of 4% compared to the prior-year period, surpassing the Wall Street consensus estimate of $2.83 billion. Adjusted earnings per share (EPS) excluding amortization reached $1.04, slightly below the consensus estimate of $1.08. The company attributed its improved performance to volume recovery and productivity enhancements across its divisions.

Revenue Performance by Segment

Segment Sales Q3 2024 YoY Change (Currency Neutral)
Nourish $1.49 billion +7%
Health & Biosciences $570 million +12%
Scent $613 million +10%
Pharma Solutions $256 million +8%

IFF achieved broad-based revenue growth across all segments, with double-digit performances in Health & Biosciences and Scent. The Nourish segment also saw robust Flavors growth, leading to a 7% currency-neutral increase.

Key Developments and Operational Highlights

  • CFO Erik Fyrwald announced an increase in the company's full-year 2024 financial guidance.
  • IFF emphasized significant volume recovery and cost productivity across its divisions.
  • Cash flow from operations reached $702 million, resulting in a free cash flow of $399 million.

Management Commentary

CEO Erik Fyrwald expressed satisfaction with the company's third-quarter performance, highlighting growth across all business segments and improved profitability. He attributed these results to market recovery and the company's focused productivity measures.

Forward Guidance

IFF increased its full-year 2024 sales expectations to $11.3 billion to $11.4 billion, up from the previous range of $11.1 billion to $11.3 billion. The company expects adjusted operating EBITDA to reach the high end of the $2.1 billion to $2.17 billion range.

Stock Price Movement

IFF's stock experienced a modest increase of approximately 0.23% following the earnings release.

In summary, IFF's third-quarter results reflected strong segment performance and positive adjustments in full-year financial guidance. The company anticipates continued growth momentum derived from market recovery and strategic productivity initiatives.

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