X
<

International Flavors and Fragrances Beat 2Q17 Estimates

PART:
1 2 3 4 5
Part 2
International Flavors and Fragrances Beat 2Q17 Estimates PART 2 OF 5

IFF Posts Highest Quarterly Revenue—but Top Line Misses Estimates

International Flavors and Fragrances’ 2Q17 revenue

International Flavors and Fragrances (IFF) posted its highest quarterly revenue. IFF reported revenue of $842.90 million, an increase of 6.20% on a year-over-year basis. In 2Q16, the segment reported revenue of $793.50 million. Although IFF posted its highest quarterly revenue, it failed to meet analysts’ revenue expectations of $$843.8 million.

IFF Posts Highest Quarterly Revenue—but Top Line Misses Estimates

Interested in IFF? Don't miss the next report.

Receive e-mail alerts for new research on IFF

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

IFF’s revenue rose mainly from acquisition growth. Acquisitions of David Micahel, Fragrance Resources, and PowderPure have contributed six percentage points to IFF’s revenue growth. Both IFF’s reporting segments saw growth, with the Flavors segment outperforming the Fragrance segment. We’ll look into the details of each of the reporting segments in later parts of this series. A volume decline in existing business and currency hedging had an adverse impact on IFF’s sales.

Geographically, North America recorded the highest growth of 19%, EMEA (Europe, Middle-East, and Africa) and Latin America reflected little growth while Greater Asia fell 3%.

Management commentary and guidance

Andreas Fibig, IFF’s chairman and CEO, said, “Looking forward, we expect second half performance to see improved year-over-year organic sales growth and additional savings related to the productivity program we announced earlier this year. For the full year, we remain optimistic that we can achieve our previously stated currency neutral guidance.”

For fiscal 2017, IFF now expects sales to rise in the range of 6.5% to 7.5%, including a currency impact, from fiscal 2016 revenue. The previous guidance was in the range of 6.0% to 7.0%.

The Materials Select Sector SPDR Fund (XLB) has invested 1.80% of its portfolio in IFF. The fund also provides exposure to Monsanto (MON), Praxair (PX), and Air Products and Chemicals (APD), with weights of 8.40%, 6.0%, and 4.60%, respectively, as of August 9, 2017.

In the next part of this series, we’ll look into the performance of IFF’s Fragrance segment in 2Q17.

X

Please select a profession that best describes you: