International Flavors & Fragrances reported an uptick in second-quarter sales, but a decrease on the bottom line.
IFF had net income of $109.8 million, down 6 percent from $116.7 million from the prior-year period. The business posted $842.9 million in net sales for the quarter, up 6 percent. Earnings per diluted share were $1.38, a dip from $1.49.
The fragrances unit increased sales 4 percent to $428.5 million, driven by acquisitions as well as gains in fine fragrances, fabric care and fragrance ingredients. Sales in consumer fragrances were flat, but supported by the acquisition of Fragrance Resources and low-single-digit improvements in fabric care and home care.
The company’s figures were helped along by the acquisitions of David Michael, Fragrance Resources and PowderPure, which contributed 6 percentage points to its revenue growth and 4 percentage points of operating profit growth, the company said. IFF’s Cosmetic Active Ingredients also grew by double digits for the quarter.
In the quarter, IFF rolled out a new fragrance ingredient — Veraspice — which it said should help drive differentiation.
“Our second-quarter results finished in line with our expectations, with improved trends across several of our key financial metrics,” said IFF chairman and chief executive officer Andreas Fibig. “We continued to advance our strategy as we drove innovation, executed our productivity programs and benefited from acquisitions. These improvements reflect significant efforts across our entire organization as we implement our long-term strategy.
“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,” Fibig said. “For the full year, we remain optimistic that we can achieve our previously stated currency-neutral guidance.”
For the year, IFF is projecting sales growth between 7.5 percent and 8.5 percent, operating profit growth between 5.5 percent and 6.5 percent, and EPS growth between 6.5 percent and 7.5 percent.
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