Sales, profits rise at IFF

17 Feb 2015

International Flavors & Fragrances has reported a fourth quarter sales increase of $30.9 million, or 4%, to $756.1 million from $725.2 million in the prior year quarter. Local currency sales increased 7%. Adjusted operating profit increased $20.6 million, or 18%, to $132.6 million from $112.0 million in the prior year quarter. For the full year, reported and local currency sales both increased 5% to $3.1 […]

Sales, profits rise at IFF

http://www.dreamstime.com/stock-photo-american-dollars-image9627850International Flavors & Fragrances has reported a fourth quarter sales increase of $30.9 million, or 4%, to $756.1 million from $725.2 million in the prior year quarter. Local currency sales increased 7%. Adjusted operating profit increased $20.6 million, or 18%, to $132.6 million from $112.0 million in the prior year quarter. For the full year, reported and local currency sales both increased 5% to $3.1 billion driven, said the company, by solid new win performance and the acquisition of Aromor during the first quarter of 2014. Emerging markets, which grew three times faster than the developed markets on a local currency basis, now account for approximately 50% of total sales.

“We are pleased to report that IFF achieved its long-term financial targets for 2014. We met or exceeded our revenue, operating profit and EPS goals and, at the same time, continued to invest in R&D, manufacturing and commercial resources to strengthen our business longer-term,” said Andreas Fibig, Chairman and Chief Executive Officer. “In addition to our strong results, 2014 marked great strides in sustainability, with our inclusion in the CDP Climate Disclosure Leadership Index. We also successfully integrated Aromor into our Fragrances business, which contributed to our overall results. And of course, we celebrated our 125th year anniversary, a tremendous achievement, which was exemplified by our people and their passion, creativity, expertise and empowerment.”

The Flavors Business Unit reported that sales increased 4%, or $13.3 million, to $356.3 million from $343.0 million in the prior year quarter. Local currency sales grew 6% in the fourth quarter, against a 7% year-ago comparison, led by 7% growth in the emerging markets and a strong performance in North America. On a category basis, Beverages grew high double-digits with broad-based growth across all regions driven by strong innovative solutions for better-for-you products. Growth in Savory was also solid, improving mid-single digits globally, led by new win performance. Flavors segment profit totalled $72.6 million, compared with $69.5 million in the prior year quarter.

Reported Flavors sales for the full year increased 2%, or $34.3 million, to $1.5 billion. Local currency sales increased 4% in 2014, as growth in Beverage, Dairy and Savory were driven by the company’s innovation platform for better-for-you products.

On a regional basis, Latin America performed best, growing local currency sales double-digits every quarter in 2014 to finish the year with 16% growth. EAME and Greater Asia both delivered solid local currency growth, while North America, although improved in the second half, was challenged.

Full year Flavors segment profit totalled $331.3 million versus $323.6 million in the prior year, or an increase of 2%.

“As we look ahead to 2015, we believe our business is positioned for continued performance that generates favorable returns for our shareholders, despite some macro-economic uncertainty and increased currency pressure,” said Fibig. “We have a well-balanced geographic profile, a diverse product portfolio, and a strong innovation pipeline that we believe sets us apart from the competition. We believe this breadth and diversity provides our investors with an attractive combination of sustainable growth and strong cash flow generation. As such, our local currency sales and operating profit outlook for 2015 is consistent with our long-term targets, while we expect EPS growth in the high-single digits.”

 

Related tags

Events & Exhibitions

Related news

Scouting out the latest health trends and innovations at Vitafoods Europe

Scouting out the latest health trends and innovations at Vitafoods Europe

20 May 2022

From mood, cognition, and gut health to the importance of selling experiences rather than products, the Healthy Marketing Team (HMT) rounds up the biggest trends it spotted at Vitafoods Europe last week.

Read more 
Top trends to watch at Expo West

Top trends to watch at Expo West

18 Feb 2022

From the foodification of supplements to mission-driven commerce, trendspotters at Natural Products Expo West have identified the top 10 trends shaping the US healthy food industry.

Read more 
New Product Zone showcased the most innovative products at Fi Europe

New Product Zone showcased the most innovative products at Fi Europe

15 Dec 2021

Attendees of Fi Europe 2021 were able to discover an extensive selection of the most innovative products, showcased alongside insightful information at the New Product Zone.

Read more 
Startup Innovation Challenge 2021: Recognising disruptive ideas in F&B innovation

Startup Innovation Challenge 2021: Recognising disruptive ideas in F&B innovation

6 Dec 2021

The Fi Global Startup Innovation Challenge aims to support innovative projects within the F&B industry by offering startups the opportunity to showcase their innovations and meet the industry's foremost ingredients professionals.

Read more 
Fi Europe Innovation Awards: Recognising innovative ingredient solutions at Fi Europe 2021

Fi Europe Innovation Awards: Recognising innovative ingredient solutions at Fi Europe 2021

6 Dec 2021

The Fi Europe Innovation Awards recognise ground-breaking work in food and beverage ingredients at the annual Fi Europe, co-located with Hi Europe, event. This year has featured some outstanding ingredients and concepts in the fields of health, sustain...

Read more 
Fi Europe opens its doors to in-person attendees today!

Fi Europe opens its doors to in-person attendees today!

30 Nov 2021

After a week-long online program Fi Europe opens for in-person attendees under 2G measures in Frankfurt today – if you’re not able to attend in-person, you can follow the program from the show floor live on the online platform.

Read more 
Obama celebrated 60 with top vegan brands

Obama celebrated 60 with top vegan brands

9 Aug 2021

Plant-based foods have become so widely accepted that former President Barack Obama’s 60th birthday celebration featured a vegan, plant-based menu, according to a menu leaked by Bloomberg.

Read more 
Plant-based nugget prices cheaper than real chicken

Plant-based nugget prices cheaper than real chicken

3 Aug 2021

Chickenflation is a real thing, and plant-based protein maker Alpha Foods is taking advantage of skyrocketing chicken prices to grab the attention of non-meat eaters and meat eaters alike.

Read more 
Future of Nutrition Award debuts at the Fi Europe Innovation Awards

Future of Nutrition Award debuts at the Fi Europe Innovation Awards

16 Jul 2021

The Fi Europe Innovation Awards, held at Fi Europe 2021 co-located with Hi Europe, celebrate people, companies and organisations breaking new ground in the Food & Beverage industry.

Read more 
Flavor company Givaudan crowdsources flavors with its Aroma Kiosk

Flavor company Givaudan crowdsources flavors with its Aroma Kiosk

12 Apr 2021

Swiss flavor giant Givaudan has rolled out its Aroma Kiosk, a digital sensory tool that crowdsources flavor preferences. These kiosks are located globally in grocery and retail stores as well as universities where shoppers can interact with the technol...

Read more