News

4th quarter growth sees IFF deliver positive annual results

21 Feb 2018

Reported net sales for the full year totalled $3.4 billion, an increase of 9% from $3.1 billion in 2016. Reported operating profit for the full year was $581 million versus $567 million reported in 2016,

In the fourth quarter, IFF’s flavours business grew its sales 6% and profits 10%, while fragrances sales grew 18% with profit up 4%.

Reported net sales for the full year totalled $3.4 billion, an increase of 9% from $3.1 billion in 2016. Reported operating profit for the full year was $581 million versus $567 million reported in 2016, an increase of 2%. Currency neutral adjusted operating profit grew 5%, principally driven by volume growth, the benefits associated with cost and productivity initiatives and acquisitions.

“2017 was another notable year in terms of progress, both strategically and in regards to our financial performance,” said Chairman and CEO Andreas Fibig. “We continued to advance our long-term strategy that will enable us to deliver strong returns for our shareholders. We successfully launched three new captive fragrance ingredients, commercialized three natural modulators, expanded our core list participation with several key accounts, and launched Tastepoint℠ by IFF - a fully dedicated organization within IFF designed to service middle-market customers in North America. In addition, we continued to make progress towards our M&A ambition, adding nearly $90 million in expected annualized revenue with the acquisitions of Fragrance Resources & PowderPure.

“In terms of full year financial performance, we achieved currency neutral growth across all of our key metrics. Both business units successfully delivered solid top-line growth – with a marked acceleration in the second half of 2017. Bottom-line performance was supported by strong benefits from cost and productivity initiatives and value-enhancing acquisitions.”

“As we enter 2018 – recognizing that uncertainty remains in the operating environment – we are targeting growth across all of our key financial metrics. We are doing so by taking action to accelerate sales growth in advantaged categories, deliver innovation that is truly differentiated and generate higher returns via continued cost and productivity initiatives. This in turn is expected to lead to currency neutral adjusted operating profit growth in line with our long-term target, absent of a two percentage point headwind related to a supply issue of a commonly used raw material, and ultimately generate strong returns for our shareholders.”