IFF beats expectations with Q2 earnings rise

IFF beats expectations with Q2 earnings rise

Fragrance and flavor company IFF has recorded an adjusted earnings increase of 5 percent – excluding the negative 3 percent impact from foreign currency movements – beating Q2 expectations.

Reported net sales increased 3 percent to $793.5 million while currency neutral sales increased 4 percent, including a 2 percent contribution related to the acquisition of IFF Ottens Flavors and IFF Lucas Meyer Cosmetics.

Reported operating profit rose 11 percent to $164.5 million while reported earnings per share increased 13 percent to $1.46 per diluted share compared with $1.29 per diluted share in the prior year second quarter.

Chairman and CEO Andreas Fibig said, “Since inception, we’ve seen strong currency neutral sales growth across all of our key platforms – modulation, encapsulation, delivery systems and naturals – proof that we are executing our plan and delivering industry-leading innovation to our customers.”

On the fragrance side of the company, sales increased 5 percent to $414.0 million while the fine fragrance sector fell 1 percent. Consumer fragrances grew 4 percent on a reported basis driven by growth across all sub-categories led by a double-digit increase in personal wash and strong contributions from fabric and home care.