International Flavors & Fragrances Achieves Strong Growth and Targets Record Sales

2024-11-24

International Flavors & Fragrances (IFF) had made significant progress in strengthening its business and capital structure, as discussed during an earnings call led by CEO Erik Fyrwald. The company reported solid third-quarter results, with notable achievements such as high single-digit volume growth and double-digit growth in adjusted operating EBITDA. Fyrwald also announced modifications to the full-year 2024 financial guidance, setting a target net sales range of $11.3 billion to $11.4 billion and aiming for the high end of the EBITDA range.

In terms of business performance, IFF experienced substantial volume improvements across all four business units, resulting in a 16% increase in comparable adjusted operating EBITDA driven by ongoing productivity initiatives. The Nourish business unit saw a 7% rise in currency-neutral sales and an 18% increase in adjusted operating EBITDA, while Functional Ingredients achieved high single-digit volume growth.

Looking ahead, IFF updated its net sales range, volume growth expectations, pricing outlook, and adjusted operating EBITDA range for full-year 2024. The company emphasized its commitment to enhancing performance through customer focus, innovation, and productivity, with a strategic focus on improving margins and Return on Invested Capital (ROIC).

Furthermore, IFF prioritized capital allocation to higher margin businesses such as Scent, Taste, and Health & Biosciences. The company invested in growth markets like India, bolstered its R&D capabilities, and solidified its market position through innovation and customer relationships.

Overall, IFF's proactive approach to business growth, financial performance, and strategic investments has positioned it favorably for future success. With a strong emphasis on innovation, customer engagement, and operational excellence, IFF is poised to deliver sustainable growth and value creation in the flavors and fragrances industry.