First Quarter 2024 Performance Highlights from IFF


IFF (NYSE: IFF) released its financial outcomes for the first quarter concluding on March 31, 2024. CEO Erik Fyrwald commented, “We’ve commenced the year on a positive note, witnessing favorable performances across most sectors of our operations.” Fyrwald added, “During the initial quarter, we achieved volume growth and enhanced productivity, resulting in robust outcomes both in terms of revenue and profit on a comparable basis. While it’s an encouraging start, we remain mindful that the year is still in its early stages and uncertainties persist. However, considering our current performance and outlook for the remainder of the year, we anticipate our results to likely lean towards the upper bounds of our previously communicated guidance.”

Furthermore, significant strides were taken in IFF’s portfolio optimization strategy. This included the agreement to divest the Pharma Solutions business and the completion of the previously announced sale of the Cosmetic Ingredients division. These actions, coupled with the adjustment of the dividend earlier in the year, underscore IFF’s commitment to fortifying its capital structure and enhancing its debt leverage ratio.

Here’s a snapshot of the consolidated financial results for the first quarter of 2024:

  • Net sales for the period totaled $2.90 billion, reflecting a 4% decrease compared to the corresponding period in the previous year. However, on a comparable basis, currency-neutral sales increased by 5%, primarily driven by growth in Scent, Health & Biosciences, and Nourish segments.
  • Income before taxes stood at $115 million on a reported basis, while adjusted operating EBITDA for the period was $578 million, marking a notable 20% improvement compared to the prior-year period.
  • Reported earnings per share (EPS) amounted to $0.23, with adjusted EPS excluding amortization reaching $1.13 per diluted share.
  • Cash flows from operations totaled $99 million by the end of the first quarter, with free cash flow amounting to $(19) million.
  • Notably, the total debt to trailing twelve months net loss ratio at the close of the first quarter was (4.1)x, while the net debt to credit adjusted EBITDA ratio stood at 4.4x.

Segment-wise performance highlights for the first quarter:

  • Nourish Segment: Reported sales were $1.50 billion, with adjusted operating EBITDA reaching $216 million.
  • Health & Biosciences Segment: Reported sales stood at $531 million, with adjusted operating EBITDA totaling $159 million.
  • Scent Segment: Reported sales amounted to $645 million, with adjusted operating EBITDA hitting $157 million.
  • Pharma Solutions Segment: Reported sales were $227 million, with adjusted operating EBITDA reaching $46 million.

Looking ahead, the Company revised its full-year 2024 guidance, anticipating results to trend towards the higher end of the previously announced sales guidance range of $10.8 billion to $11.1 billion and adjusted operating EBITDA guidance range of $1.9 billion to $2.1 billion. Volume is expected to trend towards the upper end of the previously announced 0% to 3% range, with pricing expected to increase approximately 1%.

An audio webcast to discuss the financial results will be held on May 7, 2024, at 9:00 a.m. ET, accessible on the Company’s IR website at ir.iff.com. A recorded version of the webcast will also be available on IFF’s website approximately one hour after the event and will remain accessible for one year.

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