Number one flavour and fragrance house reports a drop in sales for the second quarter, hit by a slip in European and North American sales. International Flavors & Fragrances had expected sales to increase by 5 per cent on 2002, in reality they rose by 2-3 per cent.
Reported dollar sales benefited from the strengthening of various currencies, most notably the Euro, in relation to the US dollar. But had exchange rates remained constant between 2003 and 2002, sales for the second quarter 2003 would have dropped by a considerable 5-6 per cent from 2002.
The company - with annual sales exceeding €1.5bn - had previously expected local currency sales to be flat in relation to the 2002 second quarter.
On the whole, the less than stellar sales performance reflected a marked slow-down in sales activity during the last weeks of the quarter, most significantly in Europe and North America. Latin America and parts of Asia Pacific also recorded a dip, but according to the company, Indian sales exceeded previous expectations.
Comparison with the 2002 second quarter sales exclude $4.3 million (€3.8m) of sales attributable to non-core businesses disposed of in the course of 2002, said IFF.