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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