International Flavors & Fragrances (IFF) has announced a 5 percent rise in sales for the year ended January 1, 2016. Adjusted operating profit was up 8 percent and adjusted earnings per share climbed 11 percent.
“2015 was a successful year for IFF as we embarked on a new chapter in our 126-year journey of discovery and pioneering firsts,” said Chairman and CEO Andreas Fibig. “I am pleased with the progress we’ve made in terms of our financial performance and strategic execution. From a strategic perspective, since the initiation of our Vision 2020 strategy we believe we have taken the right steps in our ambition to build greater differentiation, accelerate profitable growth and increase shareholder value.
Regionally, the company saw strong growth in the Middle East & Africa with a 14 percent sales increase for 2015 on a currency neutral basis, while in China, fragrance compounds sales registered growth in the region of high-single digits. Latin America, too was a highlight, with flavors up 16 percent on a currency neutral basis, while the acquisition of Ottens Flavors helped the US flavors and fragrance producer climb to the number two spot in its home market.
The fragrance business unit saw currency neutral sales grow 4 percent, driven by the acquisition of Lucas Meyer Cosmetics and a strong performance in the Middle East & Africa. On a reported basis, sales were down 3 percent to US$1.6 billion, and profit dipped 4 percent to US$321.8 million.
The company also released its forecast for the year ahead, predicting sales growth of 3.5 percent to 4.5 percent for 2016 and a rise in adjusted operating profit of between 5 percent and 7 percent, on a currency neutral basis. However, Fibig cautioned that 2016 was set to be ‘challenging’. “We are preparing ourselves for even more challenging conditions given a higher level of economic uncertainty and the more cautious volume outlook of consumer packaged goods companies. We remain confident in our ability to navigate through these uncertain times.