In This Article:
-
Revenue: $2.9 billion, an increase of 9% on a comparable currency-neutral basis.
-
Comparable Adjusted Operating EBITDA: Increased by 16% in the quarter.
-
Comparable Adjusted Operating EBITDA Margin: 19.4%, improving by 180 basis points versus Q3 of '23.
-
Adjusted EPS (excluding amortization): $1.04, increasing 17% versus the prior year period.
-
Nourish Sales: Increased 7% on a comparable currency-neutral basis.
-
Health & Biosciences Sales: Increased 12% on a comparable currency-neutral basis.
-
Scent Sales: $613 million, up 10% on a comparable currency-neutral basis.
-
Pharma Solutions Sales: $256 million, an 8% increase on a comparable currency-neutral basis.
-
Cash Flow from Operations: $702 million year-to-date.
-
Free Cash Flow: $399 million year-to-date.
-
Net Debt to Credit Adjusted EBITDA: 3.9x, a decrease from 4.5x at the end of '23.
-
Full Year 2024 Net Sales Guidance: $11.3 billion to $11.4 billion.
-
Full Year 2024 Adjusted Operating EBITDA Guidance: Near the high end of $2.1 billion to $2.17 billion.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
International Flavors & Fragrances Inc (NYSE:IFF) reported solid third-quarter results with significant bottom-line improvement compared to the previous year.
-
The company achieved growth across all business units, with notable volume improvements and high single-digit volume growth.
-
IFF increased its full-year 2024 guidance, expecting net sales between $11.3 billion and $11.4 billion, which is higher than the previous guidance.
-
The company is on track to complete the divestiture of its Pharma Solutions business in the first half of 2025, marking progress in portfolio optimization.
-
Employee engagement has improved significantly over the last 10 months, reflecting a positive internal culture shift.
Negative Points
-
IFF remains cautious about the fourth quarter due to potential customer inventory adjustments at year-end, which could impact sales.
-
Despite strong performance, the company faces continued soft end consumer demand, which could affect future growth.
-
The Nourish segment experienced a sequential decline in margins despite strong top-line performance, attributed to seasonal factors and increased investments.
-
Foreign exchange impacts have negatively affected adjusted EPS, despite strong profit performance.
-
IFF's free cash flow guidance remains unchanged due to increased working capital, offsetting higher earnings.
Q & A Highlights
Q: Can you explain the assumptions behind your fourth-quarter guidance, which seems lower than expected? A: J. Erik Fyrwald, CEO, explained that the fourth quarter has started as expected, but they are cautious due to potential customer inventory adjustments at year-end, which has happened in previous years.