International Flavors & Fragrances Inc. increased sales, but not profits, for its first fiscal quarter.
IFF posted a 6 percent increase in net sales for the quarter, with $828.3 million compared with $783.3 million in the prior-year period. Net income was $115.70 million, down 2 percent year-over-year. Earnings per share were $1.45, a decline from $1.47 year-over-year.
The company’s’ fragrances business posted $422.1 million in sales, a 3 percent sales increase from the prior year. Acquisitions added 4 percent to that sales figure, according to the company. Profit for the fragrances segment was down 8 percent. IFF said profitability suffered as volume and productivity increases were offset by price to input costs and unplanned expenses. The flavors division was up 9 percent, with 6 percent of that due to acquisitions.
“We are pleased to report that our first-quarter sales growth was strong and in line with our expectations,” said IFF chairman and chief executive officer Andreas Fibig. “Sales performance was broad-based, driven by the contribution of our recent acquisitions and a strong performance in Flavors, where we achieved growth across all categories and regions.
Fibig continued, “As we look to the balance of the year, we are optimistic that we can achieve our previously stated annual financial guidance, on a currency neutral basis. By leveraging our competitive advantages, executing against our strategic plan and fully realizing the benefits of our productivity program announced earlier this year, we believe we are well-positioned to continue to deliver long-term, sustainable shareholder value.”
IFF has made a handful of acquisitions recently, including Fragrance Resources, which the company bought as a means to add to its fine fragrances business. IFF previously acquired Lucas Meyer Cosmetics, which develops ingredients for the cosmetics industry. The business also invested in Canadian research and development laboratory Bio ForeXtra last July, aiming to add further access to cosmetic ingredients.