IFF reports strong sales but charges hit profits

By Simon Pitman

- Last updated on GMT

Related tags Sales growth United states dollar Euro

New Jersey-based International Flavors and Fragrances has reported
a strong increase in its third quarter sales driven by its flavors
division, but profits are hit by administration charges.

Net sales grew by 8 percent to reach $583.3m, up from $539.1m in the corresponding quarter in 2006, a figure that reflected healthy sales growth in the fragrance division, but even stronger flavors sales growth.

The sales figure was well ahead of market expectations, but the result was boosted by a weaker US dollar, which helped to drive international sales, particularly in the Euro zone.

But a $5.9m charge relating to a pension curtailment loss impacted the bottom line significantly, driving net profits down by 8 percent to $58.4m, from $63.6m for the corresponding period last year.

Quarterly sales growth in the company's flavors division was strong at 11 percent, pushing sales up to $256.4m. However, the performance of the group's fragrance division was not so strong, with sales climbing 6 percent to reach $326.9m, which in turn meant that profits for the division were flat compared to a year ago.

Although the fragrance sales were positively impacted by an 11 percent increase in both fine fragrances and beauty care, as well as ingredient sales, the company said that the division was negatively impacted by lower selling prices for ingredients.

It also said that lower functional fragrance volumes and higher material costs had impacted the division's performance.

CEO Robert Amen said that he was expecting the company's fragrance division to be boosted by a continued strong performance for its fine fragrances in the next quarter.

"Looking ahead, IFF is well positioned to benefit from the strong global economy and the rapid growth in consumer sectors of Asia, Latin America and Eastern Europe," he added.

Related news

Show more

Related products

show more

Calendula Cellular Elixir: Alchemy in a cell

Calendula Cellular Elixir: Alchemy in a cell

Content provided by Naolys | 11-Jun-2024 | Product Brochure

Get ready to experience a cellular evolution in skincare with InnerLift Calendula's advanced Plant Cell biotechnology.

Exosomes: Passing Trend or Transformative Reality?

Exosomes: Passing Trend or Transformative Reality?

Content provided by Naolys | 23-Feb-2024 | Sponsored Link

Exosomes, microscopic vesicles naturally present in abundance within Plant Cells, have garnered significant attention within the scientific and cosmetic...

Give collagen and your products a boost

Give collagen and your products a boost

Content provided by Lycored SARL | 14-Feb-2024 | White Paper

Lumenato, Lycored’s scientifically supported proprietary wellness extract, gets to work quickly complementing and protecting the structural benefits of...

Follow us

Products

View more

Webinars

Podcast

Beauty 4.0 Podcast