X
<

International Flavors and Fragrances Delivers Strong 3Q17 Results

PART:
1 2 3 4 5
Part 3
International Flavors and Fragrances Delivers Strong 3Q17 Results PART 3 OF 5

How Did IFF’s Flavors Segment Perform in 3Q17?

IFF’s Flavors segment in 3Q17

International Flavors and Fragrances’ (IFF) Flavors segment saw a decline in its revenue contribution to the company’s overall revenue. This segment accounted for 46.9% in 3Q17 compared to 47.2% in 3Q16. The segment reported revenue of $409.8 million in 3Q17, an increase of 11.7% on a year-over-year basis. In 3Q16, the segment reported revenue of $366.9 million.

How Did IFF&#8217;s Flavors Segment Perform in 3Q17?

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

Receive e-mail alerts for new research on LYB

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.

The growth in the segment’s revenue was primarily driven by the continued contribution from the acquisitions of David Michael and PowderPure. The segment’s revenue witnessed growth in all regions. North America once again recorded the highest growth at 28%, followed by EMEA (Europe, Middle East, and Africa) with 12%, while the Greater Asia and Latin America regions rose 2% and 1%, respectively.

Segment’s profit and margins

The segment reported a net profit of $91.4 million, an increase of 17.9% on a year-over-year basis. In 3Q16, the segment reported a net profit of $77.5 million. The segment’s margins also improved during the quarter to 22.3% in 3Q17 compared to 21.1% in 3Q16, implying an increase of 120 basis points on a year-over-year basis. The increases in the segment’s net profit and net profit margin were mainly driven by increased sales due to volume growth and productivity initiatives.

Outlook

The segment revenue will continue to grow from the benefits of the acquisition in 4Q17. Further, the expansions of the Cairo site could also drive the growth in the region and in turn help the segment grow. Also, the productivity measures are expected to help the segment’s margin to improve in 4Q17.

Investors can hold IFF indirectly by investing in the iShares U.S. Basic Materials ETF (IYM), which invests 1.4% of its portfolio in IFF. The fund also provides exposure to DowDuPont (DWDP), Monsanto (MON), and LyondellBasell (LYB), which have weights of 24.9%, 7.0%, and 4.3%, respectively, as of November 7, 2017.

X

Please select a profession that best describes you: