International Flavors & Fragrances posted gains in the third fiscal quarter, helped by recent acquisitions.
IFF’s net sales were up 12 percent to $872.9 million for the quarter. Net income was up 23 percent, to $110.3 million. Diluted net earnings per share were $1.39.
The fragrances division posted a 13 percent increase in sales to $463.1 million, driven by both organic and acquired businesses. Fine Fragrances, including sales from the acquisition of Fragrance Resources, were up 20 percent in the quarter. Consumer Fragrances grew 12 percent for the quarter, led by growth in home care and fabric care.
The company saw a high-single-digit increase in encapsulation-related sales in fabric care and personal wash. Cosmetic active ingredients grew double-digits in the quarter. IFF has acquired a handful of businesses lately, including Lucas Meyer Cosmetics, which makes cosmetic and active ingredients, and Fragrance Resources.
The flavors business posted a 12 percent sales increase to $409.8 million.
“We are pleased to report strong financial results in the third quarter,” said IFF chairman and chief executive officer Andreas Fibig. “Thanks in large part to our industry-leading innovation, the strength and diversity of our business and our recent acquisitions, we achieved growth in all our categories and regions. Both businesses delivered marked improvements versus the first half led by strong new win performance as well as improved volume trends. At the same time, our focus on driving greater efficiency throughout our business via cost and productivity initiatives continued to support overall profitability.”
“Based on our year-to-date performance and our current outlook for the fourth quarter, we remain optimistic that we can achieve our previously stated full-year currency neutral guidance,” Fibig said. “We continue to focus on the execution of our strategy to drive growth, increase differentiation, and generate return to deliver sustainable, profitable growth and maximize shareholder value.”
IFF is currently guiding towards sales growth of between 7.5 percent and 8.5 percent, with operating profit growth between 5.5 percent and 6.5 percent, and an earnings per share increase between 6.5 percent and 7.5 percent.