- Reports Q1 net sales of $2.74 billion, beating the $2.64 billion consensus.
- Posts adjusted earnings per share of $1.25, surpassing estimates of $1.07.
- Reaffirms its full-year 2024 sales and profit guidance.
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IFF beats Q1 estimates with sales of $2.74 billion
International Flavors & Fragrances reported first-quarter net sales of $2.74 billion, beating Wall Street expectations helped by resilient demand and volume growth across all segments.
“We delivered volume growth in all four segments, improved profitability, and generated strong cash flow in the first quarter," CEO Erik Fyrwald said in a statement.
The food ingredients and fragrance maker surpassed analyst estimates for both revenue and profit. The performance comes as the company sharpens its focus on its core businesses after a series of divestitures.
Shares of the New York-based company rose about 5 percent in after-market trading following the announcement. IFF maintained its annual sales forecast in the range of $10.5 billion to $10.8 billion and reaffirmed its projection for adjusted operating core profit of $2.05 billion to $2.15 billion.
The company has been divesting non-core assets, including the $2.85 billion sale of its pharma solutions business last year, to concentrate on its flavors, fragrances, and health ingredients divisions. While the food ingredients segment saw a 12 percent rise in adjusted operating profit, the scent division's earnings fell 2 percent due to high input costs.
The reaffirmed guidance suggests management is confident in sustained demand for its core products. Investors will look for further details on segment margins and the integration of its strategic shifts in the upcoming earnings call.
This article is for informational purposes only and does not constitute investment advice.
