Strong Top- and Bottom-Line Growth in Scent and Pharma
Solutions; Demand Softness Primarily Driven by Customer Destocking
in Functional Ingredients
Strengthening Capital Structure Through Working Capital
Improvements and Portfolio Optimization; Launching Sale Process for
Lucas Meyer Cosmetics and Exploring Additional Strategic Pathways
to Unlock Value for Shareholders
IFF Declares Dividend for Third Quarter 2023
IFF (NYSE: IFF) reported financial results for the second
quarter ended June 30, 2023.
Second Quarter 2023 Consolidated Summary:
Reported
(GAAP)
Adjusted
(Non-GAAP)1
Sales
Income Before Taxes
EPS
Operating EBITDA
Operating EBITDA
Margin
EPS ex Amortization
$2.9 B
$50 M
$0.11
$510 M
17.4%
$0.86
First Six Months 2023 Consolidated Summary:
Reported
(GAAP)
Adjusted
(Non-GAAP)1
Sales
Income Before Taxes
EPS
Operating EBITDA
Operating EBITDA
Margin
EPS ex Amortization
$6.0 B
$64 M
$0.07
$1.0 B
17.0%
$1.72
Management Commentary
“Amid the current operating environment, IFF has performed near
expectations across the majority of our portfolio, led by strong
top- and bottom-line results in Scent and Pharma Solutions," said
IFF CEO Frank Clyburn. "The continued customer destocking and
volume pressures in the second quarter reflect the broader
macroeconomic challenges facing our industry, and for IFF, this
softness has been largely isolated in our Functional Ingredients
business within Nourish. From a profitability perspective, our
adjusted operating EBITDA was in line with our guidance range,
excluding a one-time inventory write-down due to unprecedented cost
fluctuations for one ingredient. Our focus on cash flow generation
has also yielded solid results - improving sequentially and versus
the prior year period - as we successfully executed on our
inventory reduction program."
Clyburn continued, “We have broadened our portfolio optimization
efforts – launching the sale process for our Lucas Meyer Cosmetics
business – and hired an external advisor to explore additional
strategic pathways to maximize shareholder returns. We are also
taking decisive action to improve Functional Ingredients through an
operational improvement plan to accelerate sales and expand margin
for this business. I am encouraged by the progress our team is
making and remain confident in the long-term value potential of
IFF.”
Second Quarter 2023 Consolidated Financial Results
- Reported net sales for the second quarter were $2.93 billion,
flat versus the prior-year period. On a comparable basis2, currency
neutral sales decreased 4% versus the prior-year period, as
continued growth in Scent and Pharma Solutions were more than
offset by softness in Nourish & Health & Biosciences.
Pricing continues to be strong, increasing high- single digits
year-over-year, and volume was pressured primarily related to
destocking, declining low double-digits versus the year-ago period.
Approximately 60% of the total volume decline was due to a more
than 20% volume decline in the Functional Ingredients business. IFF
volume performance was down mid-single digits in the second quarter
2023, excluding the impact of Functional Ingredients.
- Income before taxes on a reported basis for the second quarter
was $50 million. Adjusted operating EBITDA for the second quarter
was $510 million. On a comparable basis2, currency neutral adjusted
operating EBITDA declined 18% versus the prior-year period, as
strong pricing and productivity gains were more than offset by
lower volumes, unfavorable manufacturing absorption related to the
Company's inventory improvement program and a $44 million one-time
write-down of inventory related to unprecedented cost fluctuations
for Locust Bean Kernel (LBK). Excluding the one-time inventory
write-down, adjusted operating EBITDA for the quarter was within
the previously forecasted guidance range of $540 million to $590
million.
- Reported earnings per share (EPS) for the second quarter was
$0.11. Adjusted EPS excluding amortization was $0.86 per diluted
share.
- Cash flows from operations at the end of the second quarter was
$375 million, and free cash flow defined as cash flows from
operations less capital expenditures totaled $85 million. This cash
flow performance was driven by more than $150 million reduction in
inventory versus the first quarter 2023. Net debt to credit
adjusted EBITDA at the end of the second quarter was 4.5x.
Second Quarter 2023 Segment Summary: Growth vs. Prior
Year
Reported
(GAAP)
Adjusted (Non-GAAP)
Comparable Currency
Neutral
(Non-GAAP)2
Comparable Currency Neutral
Adjusted
(Non-GAAP)2
Sales
Operating EBITDA
Sales
Operating EBITDA
Nourish
(14)%
(50)%
(9)%
(42)%
Health & Biosciences
(22)%
(21)%
(3)%
(9)%
Scent
2%
26%
5%
41%
Pharma Solutions
3%
16%
3%
16%
Nourish Segment
- On a reported basis, second quarter sales were $1.56 billion.
On a comparable basis2, currency neutral sales decreased 9%
primarily driven by a more than 20% decline in Functional
Ingredients volume. Flavors and Food Design were resilient in the
challenging operating environment, down modestly versus the
prior-year period.
- Nourish adjusted operating EBITDA was $181 million and adjusted
operating EBITDA margin was 11.6% in the second quarter. On a
comparable basis2, currency neutral adjusted operating EBITDA
declined 42% as price increases and productivity gains were more
than offset by lower volumes, unfavorable manufacturing absorption
related to the Company's inventory reduction program and a
write-down of inventory related to LBK.
Health & Biosciences Segment
- On a reported basis, second quarter sales were $522 million. On
a comparable basis2, currency neutral sales decreased 3% as growth
in Cultures & Food Enzymes, Grain Processing and Home &
Personal Care was more than offset primarily by weakness in Health
as a result of soft market conditions in North America and
China.
- Health & Biosciences adjusted operating EBITDA was $145
million and adjusted operating EBITDA margin was 27.8% in the
second quarter. On a comparable basis2, currency neutral adjusted
operating EBITDA declined 9% as price increases and productivity
gains were more than offset by lower volumes and unfavorable
manufacturing absorption related to the Company's inventory
reduction program.
Scent Segment
- On a reported basis, second quarter sales were $592 million. On
a comparable basis2, currency neutral sales increased 5% led by
double-digit growth in Consumer Fragrance and a high-single digit
increase in Fine Fragrance, with balanced contributions from volume
and price.
- Scent adjusted operating EBITDA was $117 million and adjusted
operating EBITDA margin was 19.8% in the second quarter. On a
comparable basis2, currency neutral adjusted operating EBITDA
increased a very strong 41% led by net favorable price to inflation
and productivity gains.
Pharma Solutions Segment
- On a reported basis, second quarter sales were $251 million. On
a comparable basis2, currency neutral sales increased 3% led by
strong growth in Core Pharma.
- Pharma Solutions adjusted operating EBITDA was $67 million and
adjusted operating EBITDA margin was 26.7% in the second quarter.
On a comparable basis2, currency neutral adjusted operating EBITDA
increased 16% driven by pricing and productivity gains.
Portfolio Optimization Initiatives
At its 2022 Investor Day, IFF outlined its approach to portfolio
management and the characterization of the portfolio within three
categories: Invest, Maximize and Optimize. IFF has been focused on
maximizing the value of the portfolio along those parameters and
has taken a range of proactive steps to position IFF for long-term
success. Consistent with this framework, as well as a best-owner
mindset, the Company has successfully completed the divestitures of
its Microbial Control, Savory Solutions and Flavor Specialty
Ingredients businesses, and taken the decision to launch a sale
process for its Cosmetic Ingredients business or Lucas Meyer
Cosmetics.
In connection with its strategy to prioritize its most
synergistic and highest-value businesses and achieve its
deleveraging targets, IFF has hired J.P. Morgan to explore
additional divestiture actions within the portfolio as a pathway to
unlock further value creation for its shareholders.
Functional Ingredients Operational Improvement Plan
IFF continues to execute a series of strategic transformation
initiatives and is taking additional actions to rapidly improve the
performance of its Functional Ingredients business. Based on the
characteristics of this business, and with new management in place,
the Company will (1) enhance its go-to-market approach by
increasing commercial resources and focusing on key global accounts
to accelerate sales growth; (2) strengthen its operating model by
delivering 2 to 4% of annual productivity through operational
efficiencies; and (3) reshape the product portfolio by focusing on
the Company's strongest product lines and discontinuing those that
are underperforming. The Company expects that these actions will
translate into low single digit comparable currency neutral sales
growth – in line with market – and a mid-teen adjusted operating
EBITDA margin over the next three years, with a strong improvement
in 2024.
The Company will also begin reporting separate business results
for the Functional Ingredients business unit in the first quarter
of 2024, at the same time that IFF begins reporting according to
its previously announced Food & Beverage, Home & Personal
Care and Health divisional structure.
With estimated 2023 annual revenue of approximately $3 billion,
IFF's Functional Ingredients business is a leading global specialty
food ingredients provider, with a market leadership position in a
broad portfolio of ingredients businesses including Protein
Solutions, Emulsifiers & Sweeteners, Core Texturant and
Cellulosic & Food Protection. The Functional Ingredients
business has a diversified product and geographic footprint
reinforced by deep and stable relationships with a large customer
base.
Quarterly Dividend
On August 2, 2023, the Board of Directors declared a regular
quarterly cash dividend of $0.81 per share of its common stock,
payable on October 5, 2023 to shareholders of record as of
September 22, 2023.
Financial Guidance
The Company expects full year 2023 sales to be in the range of
$11.3 billion to $11.6 billion versus approximately $12.3 billion
previously, reflecting the Company's expectation that volumes in
the second half of 2023 will not recover as previously expected,
driven particularly by continued customer destocking. For the year,
volume is now expected to be down mid- to high- single digits
(previously flat) on a comparable basis, with a significant decline
in Functional Ingredients. The Company continues to expect a
mid-single digit price increase for the full year 2023.
The Company expects full year 2023 adjusted operating EBITDA to
be in the range of $1.85 billion to $2.0 billion versus
approximately $2.34 billion previously, which reflects favorable
net price to inflation and enhanced productivity that are more than
offset by lower volume, higher manufacturing absorption costs
related to the Company's inventory reduction program and the impact
of the write-down of LBK inventory.
IFF remains focused on achieving its targeted full-year working
capital improvement. As such, the revised full year adjusted
operating EBITDA guidance now includes approximately $180 million
of higher manufacturing absorption costs related to the Company's
inventory reduction program versus approximately $100 million
previously disclosed.
Based on current market foreign exchange rates, the Company
expects that foreign exchange will have approximately 2% adverse
impact to sales growth and approximately a 6% adverse impact to
adjusted operating EBITDA growth in 2023.
The Company cannot reconcile its expected adjusted operating
EBITDA without unreasonable effort because certain items that
impact net income and other reconciling metrics are out of the
Company's control and/or cannot be reasonably predicted at this
time. These items include but are not limited to acquisition,
divestiture and integration related costs, gains (losses) on
business disposals, and regulatory costs.
Audio Webcast
A live webcast to discuss the Company’s second quarter 2023
financial results will be held on August 8, 2023, at 9:00 a.m. ET.
The webcast and accompanying slide presentation may be accessed on
the Company’s IR website at ir.iff.com. For those unable to listen to the live
webcast, a recorded version will be made available on the Company’s
website approximately one hour after the event and will remain
available on IFF’s website for one year.
Cautionary Statement Under The Private
Securities Litigation Reform Act of 1995
Statements in this press release, which are not historical facts
or information, are “forward-looking statements” within the meaning
of The Private Securities Litigation Reform Act of 1995. Such
forward looking statements are based on management’s current
assumptions, estimates and expectations including those concerning
the impacts of COVID-19 and our plans to respond to its
implications; the expected impact of global supply chain
challenges; expectations regarding sales and profit for the fiscal
year 2023, including the impact of foreign exchange, pricing
actions, raw materials, energy and sourcing, logistics and
manufacturing costs; expectations of the impact of inflationary
pressures and the pricing actions to offset exposure to such
impacts; the impact of high input costs, including commodities, raw
materials, transportation and energy; our ability to drive cost
discipline measures and the ability to recover margin to
pre-inflation levels; expectations regarding the implementation of
our refreshed growth-focused strategy; expectations around our
business divestitures and the progress of our portfolio
optimization strategy (including the exploration of strategic
alternatives for our Cosmetic Ingredients business), through
non-core business divestitures and acquisitions; our combination
with N&B, including the expected benefits and synergies of the
N&B Transaction and future opportunities for the combined
company, the success of our integration efforts and ability to
deliver on our synergy commitments as well as future opportunities
for the combined company; the success of our optimization of our
portfolio; the impact of global economic uncertainty or
recessionary pressures on demand for consumer products; the growth
potential of the markets in which we operate, including the
emerging markets; expected capital expenditures in 2023; the
expected costs and benefits of our ongoing optimization of our
manufacturing operations, including the expected number of
closings; expected cash flow and availability of capital resources
to fund our operations and meet our debt service requirements; our
ability to drive reductions in expenses; our strategic investments
in capacity and increasing inventory to drive improved
profitability; our ability to innovate and execute on specific
consumer trends and demands; our ability enhance our innovation
efforts and drive cost efficiencies; and our ability to continue to
generate value for, and return cash to, our shareholders.
These forward-looking statements should be evaluated with
consideration given to the many risks and uncertainties inherent in
our business that could cause actual results and events to differ
materially from those in the forward-looking statements. Certain of
such forward-looking information may be identified by such terms as
“expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”,
“estimate”, “should”, “predict” and similar terms or variations
thereof. Such forward-looking statements are based on a series of
expectations, assumptions, estimates and projections about the
Company, are not guarantees of future results or performance, and
involve significant risks, uncertainties and other factors,
including assumptions and projections, for all forward periods. Our
actual results may differ materially from any future results
expressed or implied by such forward-looking statements.
Such risks, uncertainties and other factors include, among
others, the following: (1) inflationary trends, including in the
price of our input costs, such as raw materials, transportation and
energy; (2) supply chain disruptions, geopolitical developments,
including the Russia-Ukraine conflict, or climate change related
events (including severe weather events) that may affect our
suppliers or procurement of raw materials; (3) our ability to
successfully execute the next phase of our strategic
transformation; (4) risks related to the integration of the N&B
business, including whether we will realize the benefits
anticipated from the merger in the expected time frame; (5) our
substantial amount of indebtedness and its impact on our liquidity,
credit ratings and ability to return capital to its shareholders;
(6) our ability to enter into or close strategic transactions or
divestment or successfully establish and manage acquisitions,
collaborations, joint ventures or partnerships; (7) our ability to
successfully market to our expanded and diverse customer base; (8)
our ability to effectively compete in our market and develop and
introduce new products that meet customers’ needs; (9) our ability
to retain key employees; (10) changes in demand from large
multi-national customers due to increased competition and our
ability to maintain “core list” status with customers; (11) our
ability to successfully develop innovative and cost-effective
products that allow customers to achieve their own profitability
expectations; (12) the impact of global health crises, such as the
COVID-19 pandemic, on our supply chains, global operations, our
customers and our suppliers; (13) disruption in the development,
manufacture, distribution or sale of our products from natural
disasters (such as the COVID-19 pandemic), public health crises,
international conflicts (such as the Russia and Ukraine conflict),
terrorist acts, labor strikes, political or economic crises (such
as the uncertainty related to protracted U.S. federal debt ceiling
negotiations), accidents and similar events; (14) volatility and
increases in the price of raw materials, energy and transportation;
(15) the impact of a significant data breach or other disruption in
our information technology systems, and our ability to comply with
data protection laws in the U.S. and abroad; (16) our ability to
comply with, and the costs associated with compliance with,
regulatory requirements and industry standards, including regarding
product safety, quality, efficacy and environmental impact; (17)
our ability to meet increasing customer, consumer, shareholder and
regulatory focus on sustainability; (18) defects, quality issues
(including product recalls), inadequate disclosure or misuse with
respect to the products and capabilities; (19) our ability to react
in a timely and cost-effective manner to changes in consumer
preferences and demands, including increased awareness of health
and wellness; (20) our ability to benefit from our investments and
expansion in emerging markets; (21) the impact of currency
fluctuations or devaluations in the principal foreign markets in
which we operate; (22) economic, regulatory and political risks
associated with our international operations; (23) the impact of
global economic uncertainty (including increased inflation) on
demand for consumer products; (24) our ability to comply with, and
the costs associated with compliance with, U.S. and foreign
environmental protection laws; (25) our ability to successfully
manage our working capital and inventory balances; (26) the impact
of our or our counterparties’ failure to comply with the U.S.
Foreign Corrupt Practices Act, similar U.S. or foreign anti-bribery
and anti-corruption laws and regulations, applicable sanctions laws
and regulations in the jurisdictions in which we operate or ethical
business practices and related laws and regulations; (27) any
impairment on our tangible or intangible long lived assets,
including goodwill associated with the N&B merger and the
acquisition of Frutarom; (28) our ability to protect our
intellectual property rights; (29) the impact of the outcomes of
legal claims, disputes, regulatory investigations and litigation,
related to intellectual property, product liability, competition
and antitrust, environmental matters, indirect taxes or other
matters; (30) changes in market conditions or governmental
regulations relating to our pension and postretirement obligations;
(31) the impact of changes in federal, state, local and
international tax legislation or policies, including the Tax Cuts
and Jobs Act, with respect to transfer pricing and state aid, and
adverse results of tax audits, assessments, or disputes; (32) the
impact of the United Kingdom’s departure from the European Union;
(33) the impact of the phase out of the London Interbank Offered
Rate (LIBOR) on interest expense; and (34) the impact of any tax
liability resulting from the N&B Transaction; and (35) our
ability to comply with data protection laws in the U.S. and
abroad.
The foregoing list of important factors does not include all
such factors, nor necessarily present them in order of importance.
In addition, you should consult other disclosures made by the
Company (such as in our other filings with the SEC or in company
press releases) for other factors that may cause actual results to
differ materially from those projected by the Company. Please refer
to Part I. Item 1A., Risk Factors, of the Company’s Annual Report
on Form 10-K filed with the SEC on February 27, 2023 for additional
information regarding factors that could affect our results of
operations, financial condition and liquidity.
We intend our forward-looking statements to speak only as of the
time of such statements and do not undertake or plan to update or
revise them as more information becomes available or to reflect
changes in expectations, assumptions or results. We can give no
assurance that such expectations or forward-looking statements will
prove to be correct. An occurrence of, or any material adverse
change in, one or more of the risk factors or risks and
uncertainties referred to in this press release or included in our
other periodic reports filed with the SEC could materially and
adversely impact our operations and our future financial results.
Any public statements or disclosures made by us following this
press release that modify or impact any of the forward-looking
statements contained in or accompanying this press release will be
deemed to modify or supersede such outlook or other forward-looking
statements in or accompanying this press release.
Use of Non-GAAP Financial
Measures
We provide in this press release non-GAAP financial measures,
including: (i) comparable currency neutral sales; (ii) adjusted
operating EBITDA and comparable currency neutral adjusted operating
EBITDA; (iii) adjusted operating EBITDA margin; (iv) adjusted EPS
ex amortization; (v) free cash flow; and (vi) net debt to credit
adjusted EBITDA.
Our non-GAAP financial measures are defined below.
Currency Neutral metrics eliminate the effects that result from
translating non-U.S. currencies to U.S. dollars. We calculate
currency neutral numbers by translating current year invoiced sale
amounts at the exchange rates used for the corresponding prior year
period. We use currency neutral results in our analysis of
subsidiary or segment performance. We also use currency neutral
numbers when analyzing our performance against our competitors.
Adjusted operating EBITDA and adjusted operating EBITDA margin
exclude depreciation and amortization expense, interest expense,
other (expense) income, net, and certain non-recurring or unusual
items that are not part of recurring operations such as,
restructuring and other charges, acquisition, divestiture, and
integration related costs, gains (losses) on business disposals,
strategic initiatives costs, regulatory costs, and other items.
Adjusted EPS ex Amortization excludes the impact of
non-operational items including, restructuring and other charges,
acquisition, divestiture, and integration related costs, gains
(losses) on business disposals, strategic initiatives costs,
regulatory costs, and other items that are not a part of recurring
operations.
Free Cash Flow is operating cash flow (i.e. cash flow from
operations) less capital expenditures.
Net debt to credit adjusted EBITDA is the leverage ratio used in
our credit agreements and defined as net debt (which is debt for
borrowed money less cash and cash equivalents) divided by the
trailing 12-month credit adjusted EBITDA. Credit adjusted EBITDA is
defined as income (loss) before income taxes, depreciation and
amortization expense, interest expense, specified items and
non-cash items.
Comparable results for the second quarter exclude the impact of
divestitures and acquisitions.
These non-GAAP measures are intended to provide additional
information regarding our underlying operating results and
comparable year-over-year performance. Such information is
supplemental to information presented in accordance with GAAP and
is not intended to represent a presentation in accordance with
GAAP. In discussing our historical and expected future results and
financial condition, we believe it is meaningful for investors to
be made aware of and to be assisted in a better understanding of,
on a period-to-period comparable basis, financial amounts both
including and excluding these identified items, as well as the
impact of exchange rate fluctuations. These non-GAAP measures
should not be considered in isolation or as substitutes for
analysis of the Company’s results under GAAP and may not be
comparable to other companies’ calculation of such metrics.
The Company cannot reconcile its expected adjusted operating
EBITDA under "Financial Guidance" without unreasonable effort
because certain items that impact net income and other reconciling
metrics are out of the Company's control and/or cannot be
reasonably predicted at this time. These items include but are not
limited to acquisition, divestiture and integration related costs,
gains (losses) on business disposals, and regulatory costs.
Welcome to IFF
At IFF (NYSE: IFF), an industry leader in food, beverage, scent,
health and biosciences, science and creativity meet to create
essential solutions for a better world – from global icons to
unexpected innovations and experiences. With the beauty of art and
the precision of science, we are an international collective of
thinkers who partners with customers to bring scents, tastes,
experiences, ingredients and solutions for products the world
craves. Together, we will do more good for people and planet. Learn
more at iff.com, Twitter, Facebook, Instagram, and LinkedIn.
_______________________
1
Schedules at the end of this release
contain reconciliations of reported GAAP to Non-GAAP metrics. See
Use of Non-GAAP Financial Measures for explanations of our Non-GAAP
metrics.
2
Comparable results for the second quarter
exclude the impact of divestitures and acquisitions.
International Flavors &
Fragrances Inc.
Consolidated Statements of
Income
(Amounts in millions except
per share data)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
% Change
2023
2022
% Change
Net sales
$
2,929
$
3,307
(11)%
$
5,956
$
6,533
(9)%
Cost of goods sold
1,996
2,171
(8)%
4,059
4,252
(5)%
Gross profit
933
1,136
(18)%
1,897
2,281
(17)%
Research and development expenses
161
158
2%
322
315
2%
Selling and administrative expenses
445
456
(2)%
899
915
(2)%
Amortization of acquisition-related
intangibles
172
184
(7)%
343
370
(7)%
Impairment of long-lived assets
—
120
(100)%
—
120
(100)%
Restructuring and other charges
7
7
—%
59
9
NMF
Losses (gains) on sale of assets
3
(2
)
(250)%
(2
)
(2
)
—%
Operating profit
145
213
(32)%
276
554
(50)%
Interest expense
116
77
51%
227
149
52%
Other (income) expense, net
(21
)
6
NMF
(15
)
(10
)
50%
Income before taxes
50
130
(62)%
64
415
(85)%
Provision for income taxes
23
21
10%
45
60
(25)%
Net income
27
109
(75)%
19
355
(95)%
Net income attributable to non-controlling
interests
—
2
(100)%
1
4
(75)%
Net income attributable to IFF
shareholders
$
27
$
107
(75)%
$
18
$
351
(95)%
Net income per share - basic(1)
$
0.11
$
0.43
$
0.07
$
1.38
Net income per share - diluted(1)
$
0.11
$
0.43
$
0.07
$
1.38
Average number of shares outstanding -
basic
255
255
255
255
Average number of shares outstanding -
diluted
255
255
255
255
(1)
For 2023 and 2022, net income per share
reflects adjustments related to the redemption value of certain
redeemable non-controlling interests.
NMF Not meaningful
International Flavors &
Fragrances Inc.
Condensed Consolidated Balance
Sheets
(Amounts in millions)
(Unaudited)
June 30,
December 31,
2023
2022
Cash, cash equivalents, and restricted
cash
$
649
$
493
Receivables, net
1,887
1,818
Inventories
2,790
3,151
Other current assets
1,110
1,970
Total current assets
6,436
7,432
Property, plant and equipment, net
4,218
4,203
Goodwill and other intangibles, net
22,311
22,437
Other assets
1,494
1,432
Total assets
$
34,459
$
35,504
Short-term borrowings
$
1,362
$
597
Other current liabilities
2,570
3,131
Total current liabilities
3,932
3,728
Long-term debt
9,208
10,373
Non-current liabilities
3,603
3,659
Redeemable non-controlling interests
61
59
Shareholders' equity
17,655
17,685
Total liabilities and shareholders'
equity
$
34,459
$
35,504
International Flavors &
Fragrances Inc.
Consolidated Statements of
Cash Flows
(Amounts in millions)
(Unaudited)
Six Months Ended June
30,
2023
2022
Cash flows from operating
activities:
Net income
$
19
$
355
Adjustments to reconcile to net cash
provided by (used in) operating activities
Depreciation and amortization
563
604
Deferred income taxes
(27
)
(178
)
Gains on sale of assets
(2
)
(2
)
Losses on business divestitures
19
—
Stock-based compensation
32
25
Pension contributions
(18
)
(17
)
Impairment of long-lived assets
—
120
Inventory write-down
44
—
Changes in assets and liabilities, net of
acquisitions:
Trade receivables
(70
)
(363
)
Inventories
333
(573
)
Accounts payable
(92
)
143
Accruals for incentive compensation
(77
)
(62
)
Other current payables and accrued
expenses
(248
)
(67
)
Other assets/liabilities, net
(101
)
(36
)
Net cash provided by (used in) operating
activities
375
(51
)
Cash flows from investing
activities:
Cash paid for acquisitions, net of cash
received
—
(123
)
Additions to property, plant and
equipment
(290
)
(236
)
Additions to intangible assets
—
(2
)
Proceeds from disposal of assets
21
4
Cash provided by the Merger with
N&B
—
11
Net proceeds received from business
divestitures
821
—
Net cash provided by (used in) investing
activities
552
(346
)
Cash flows from financing
activities:
Cash dividends paid to shareholders
(413
)
(402
)
(Decrease) increase in revolving credit
facility and short-term borrowings
(100
)
351
Deferred financing costs
(2
)
—
Proceeds from issuance of commercial paper
(maturities after three months)
—
160
Repayments of commercial paper (maturities
after three months)
—
(230
)
Net (repayments) borrowings of commercial
paper (maturities less than three months)
(28
)
532
Repayments of long-term debt
(300
)
—
Deferred consideration paid
(6
)
—
Employee withholding taxes paid
(11
)
(20
)
Other, net
(6
)
(14
)
Net cash (used in) provided by financing
activities
(866
)
377
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
39
(74
)
Net change in cash, cash equivalents
and restricted cash
100
(94
)
Cash, cash equivalents and restricted cash
at beginning of year
552
716
Cash, cash equivalents and restricted
cash at end of period
$
652
$
622
The following table reconciles cash, cash equivalents and
restricted cash between the Company's statement of cash flows for
the periods ended June 30, 2023 and June 30, 2022 to the amounts
reported on the Company's balance sheet:
AMOUNTS IN MILLIONS
June 30, 2023
December 31, 2022
June 30, 2022
December 31, 2021
Current assets
Cash and cash equivalents
$
638
$
483
$
569
$
711
Cash and cash equivalents included in
Assets held for sale
3
52
49
—
Restricted cash
11
10
4
4
Non-current assets
Restricted cash included in Other
assets
—
7
—
1
Cash, cash equivalents and restricted
cash
$
652
$
552
$
622
$
716
International Flavors &
Fragrances Inc.
Reportable Segment
Performance
(Amounts in millions)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Net Sales
Nourish
$
1,564
$
1,818
$
3,217
$
3,549
Health & Biosciences
522
665
1,035
1,326
Scent
592
580
1,200
1,165
Pharma Solutions
251
244
504
493
Consolidated
$
2,929
$
3,307
$
5,956
$
6,533
Segment Adjusted Operating
EBITDA
Nourish
$
181
$
365
$
389
$
694
Health & Biosciences
145
184
276
376
Scent
117
93
222
209
Pharma Solutions
67
58
126
123
Total
510
700
1,013
1,402
Depreciation & Amortization
(287
)
(301
)
(563
)
(604
)
Interest Expense
(116
)
(77
)
(227
)
(149
)
Other Income (Expense), net
21
(6
)
15
10
Restructuring and Other Charges
(7
)
(7
)
(59
)
(9
)
Impairment of Long-Lived Assets
—
(120
)
—
(120
)
Acquisition, Divestiture and Integration
Related Costs
(45
)
(61
)
(76
)
(110
)
Strategic Initiatives Costs
(9
)
—
(22
)
—
Regulatory Costs
(14
)
—
(19
)
—
Other
(3
)
2
2
(5
)
Income Before Taxes
$
50
$
130
$
64
$
415
Segment Adjusted Operating EBITDA
Margin
Nourish
11.6
%
20.1
%
12.1
%
19.6
%
Health & Biosciences
27.8
%
27.7
%
26.7
%
28.4
%
Scent
19.8
%
16.0
%
18.5
%
17.9
%
Pharma Solutions
26.7
%
23.8
%
25.0
%
24.9
%
Consolidated
17.4
%
21.2
%
17.0
%
21.5
%
International Flavors & Fragrances
Inc. GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedules
are not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Gross
Profit
Second Quarter
(DOLLARS IN MILLIONS)
2023
2022
Reported (GAAP)
$
933
$
1,136
Acquisition, Divestiture and Integration
Related Costs (c)
—
1
Adjusted (Non-GAAP)
$
933
$
1,137
Reconciliation of Selling and
Administrative Expenses
Second Quarter
(DOLLARS IN MILLIONS)
2023
2022
Reported (GAAP)
$
445
$
456
Acquisition, Divestiture and Integration
Related Costs (c)
(45
)
(60
)
Strategic Initiatives Costs (f)
(9
)
—
Regulatory Costs (g)
(14
)
—
Adjusted (Non-GAAP)
$
377
$
396
International Flavors & Fragrances
Inc. GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedules
are not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Net Income
and EPS
Second Quarter
2023
2022
(DOLLARS IN MILLIONS EXCEPT PER SHARE
AMOUNTS)
Income before taxes
Provision for income taxes
(j)
Net income attributable to IFF
(k)
Diluted EPS (l)
Income before taxes
Provision for income taxes
(j)
Net income attributable to IFF
(k)
Diluted EPS
Reported (GAAP)
$
50
$
23
$
27
$
0.11
$
130
$
21
$
107
$
0.43
Restructuring and Other Charges (a)
7
4
3
0.02
7
2
5
0.02
Impairment of Long-Lived Assets (b)
—
—
—
—
120
24
96
0.38
Acquisition, Divestiture and Integration
Related Costs (c)
45
7
38
0.15
61
15
46
0.18
Losses on Business Disposals (d)
5
(8
)
13
0.05
—
—
—
—
Gain on China Facility Relocation (e)
(22
)
(6
)
(16
)
(0.06
)
—
—
—
—
Strategic Initiatives Costs (f)
9
2
7
0.03
—
—
—
—
Regulatory Costs (g)
14
3
11
0.04
—
—
—
—
Other (h)
3
—
3
0.01
(2
)
(1
)
(1
)
(0.01
)
Redemption value adjustment to EPS (i)
—
—
—
—
—
—
—
(0.01
)
Adjusted (Non-GAAP)
$
111
$
25
$
86
$
0.34
$
316
$
61
$
253
$
0.99
Reconciliation of Adjusted
(Non-GAAP) EPS ex. Amortization
Second Quarter
(DOLLARS AND SHARE AMOUNTS IN
MILLIONS)
2023
2022
Numerator
Adjusted (Non-GAAP) Net Income
$
86
$
253
Amortization of Acquisition related
Intangible Assets
172
184
Tax impact on Amortization of Acquisition
related Intangible Assets (j)
39
43
Amortization of Acquisition related
Intangible Assets, net of tax (m)
133
141
Adjusted (Non-GAAP) Net Income ex.
Amortization
$
219
$
394
Denominator
Weighted average shares assuming dilution
(diluted)
255
255
Adjusted (Non-GAAP) EPS ex.
Amortization
$
0.86
$
1.54
(a)
For 2023 and 2022, represents costs
primarily related to severance as part of the Company's
restructuring efforts.
(b)
Represents costs related to the impairment
of intangible and fixed assets of an asset group that operated
primarily in Russia.
(c)
For 2023 and 2022, primarily represents
costs related to the Company's actual and planned acquisitions and
divestitures and integration related activities primarily for
Frutarom and N&B. These costs primarily consisted of external
consulting fees, professional and legal fees and salaries of
individuals who are fully dedicated to such efforts. For 2023,
acquisition costs primarily relate to earn-out adjustments and
integration costs primarily relate to IT costs for the N&B
integration. For 2023, tax expenses for business divestiture costs
included establishments of deferred tax liabilities related to
planned sales of businesses. For the three months ended June 30,
2023, business divestiture, integration and acquisition related
costs were approximately $20 million, $20 million and $5 million,
respectively. For the three months ended June 30, 2022, business
divestiture, integration and acquisition related costs were
approximately $30 million, $30 million and $1 million,
respectively.
(d)
Represents losses recognized primarily
related to the divestiture of the portion of the Savory Solutions
business.
(e)
Represents gain recognized from the
completion of the relocation of a facility in China.
(f)
Represents costs related to the Company's
strategic assessment and business portfolio optimization efforts
and reorganizing the Global Shared Services Centers, primarily
consulting fees.
(g)
Represents costs primarily related to
legal fees incurred for the ongoing investigations of the fragrance
businesses.
(h)
For 2023, represents losses from sale of
assets. For 2022, represents gains from sale of assets.
(i)
Represents the adjustment to EPS related
to the excess of the redemption value of certain redeemable
non-controlling interests over their existing carrying value.
(j)
The income tax effects of non-GAAP
adjustments are calculated based on the applicable statutory tax
rate for the relevant jurisdiction, except for those items which
are non-taxable or subject to valuation allowances for which the
tax expense (benefit) was calculated at 0%. The tax benefit for
amortization is calculated in a similar manner as the tax effects
of the non-GAAP adjustments.
(k)
For 2023, net income is reduced by income
attributable to non-controlling interest of less than $1 million.
For 2022, net income is reduced by income attributable to
non-controlling interest of $2 million.
(l)
The sum of these items does not foot due
to rounding.
(m)
Represents all amortization of intangible
assets acquired in connection with acquisitions, net of tax.
International Flavors & Fragrances
Inc. GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedules
are not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Gross
Profit
Second Quarter
Year-to-Date
(DOLLARS IN MILLIONS)
2023
2022
Reported (GAAP)
$
1,897
$
2,281
Acquisition, Divestiture and Integration
Related Costs (c)
—
2
Adjusted (Non-GAAP)
$
1,897
$
2,283
Reconciliation of Selling and
Administrative Expenses
Second Quarter
Year-to-Date
(DOLLARS IN MILLIONS)
2023
2022
Reported (GAAP)
$
899
$
915
Acquisition, Divestiture and Integration
Related Costs (c)
(76
)
(108
)
Strategic Initiatives Costs (f)
(22
)
—
Regulatory Costs (g)
(19
)
—
Other (h)
—
(7
)
Adjusted (Non-GAAP)
$
782
$
800
International Flavors & Fragrances
Inc. GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedules
are not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Net Income
and EPS
Second Quarter
Year-to-Date
2023
2022
(DOLLARS IN MILLIONS EXCEPT PER SHARE
AMOUNTS)
Income before taxes
Provision for income taxes
(j)
Net income attributable to IFF
(k)
Diluted EPS (l)
Income before taxes
Provision for income taxes
(j)
Net income attributable to IFF
(k)
Diluted EPS (l)
Reported (GAAP)
$
64
$
45
$
18
$
0.07
$
415
$
60
$
351
$
1.38
Restructuring and Other Charges (a)
59
16
43
0.17
9
2
7
0.03
Impairment of Long-Lived Assets (b)
—
—
—
—
120
24
96
0.38
Acquisition, Divestiture and Integration
Related Costs (c)
76
—
76
0.30
110
27
83
0.32
Losses on Business Disposals (d)
19
(5
)
24
0.09
—
—
—
—
Gain on China Facility Relocation (e)
(22
)
(6
)
(16
)
(0.06
)
—
—
—
—
Strategic Initiatives Costs (f)
22
5
17
0.07
—
—
—
—
Regulatory Costs (g)
19
4
15
0.06
—
—
—
—
Other (h)
(2
)
(1
)
(1
)
—
5
1
4
0.01
Redemption value adjustment to EPS (i)
—
—
—
—
—
—
—
(0.01
)
Adjusted (Non-GAAP)
$
235
$
58
$
176
$
0.69
$
659
$
114
$
541
$
2.12
Reconciliation of Adjusted
(Non-GAAP) EPS ex. Amortization
Second Quarter
Year-to-Date
(DOLLARS AND SHARE AMOUNTS IN
MILLIONS)
2023
2022
Numerator
Adjusted (Non-GAAP) Net Income
$
176
$
541
Amortization of Acquisition related
Intangible Assets
343
370
Tax impact on Amortization of Acquisition
related Intangible Assets (j)
78
86
Amortization of Acquisition related
Intangible Assets, net of tax (m)
265
284
Adjusted (Non-GAAP) Net Income ex.
Amortization
$
441
$
825
Denominator
Weighted average shares assuming dilution
(diluted)
255
255
Adjusted (Non-GAAP) EPS ex.
Amortization
$
1.72
$
3.23
(a)
For 2023 and 2022, represents costs
primarily related to severance as part of the Company's
restructuring efforts.
(b)
Represents costs related to the impairment
of intangible and fixed assets of an asset group that operated
primarily in Russia.
(c)
For 2023 and 2022, primarily represents
costs related to the Company's actual and planned acquisitions and
divestitures and integration related activities primarily for
Frutarom and N&B. These costs primarily consisted of external
consulting fees, professional and legal fees and salaries of
individuals who are fully dedicated to such efforts. For 2023,
acquisition costs primarily relate to earn-out adjustments and
integration costs primarily relate to IT costs for the N&B
integration. For 2023, tax expenses for business divestiture costs
included establishments of deferred tax liabilities related to
planned sales of businesses. For the six months ended June 30,
2023, business divestiture, integration and acquisition related
costs were approximately $41 million, $30 million and $5 million,
respectively. For the six months ended June 30, 2022, business
divestiture, integration and acquisition related costs were
approximately $60 million, $48 million and $2 million,
respectively.
(d)
Represents losses recognized primarily
related to the divestiture of the portion of the Savory Solutions
business and liquidation of a business in Russia for the sale of
the portion of the Savory Solutions business.
(e)
Represents gain recognized from the
completion of the relocation of a facility in China.
(f)
Represents costs related to the Company's
strategic assessment and business portfolio optimization efforts
and reorganizing the Global Shared Services Centers, primarily
consulting fees.
(g)
Represents costs primarily related to
legal fees incurred for the ongoing investigations of the fragrance
businesses.
(h)
For 2023, represents gains from sale of
assets. For 2022, represents shareholder activist related costs,
primarily professional fees, severance costs, including accelerated
stock compensation expense, for certain executives who have been
separated from the Company, and gains from sale of assets.
(i)
Represents the adjustment to EPS related
to the excess of the redemption value of certain redeemable
non-controlling interests over their existing carrying value.
(j)
The income tax effects of non-GAAP
adjustments are calculated based on the applicable statutory tax
rate for the relevant jurisdiction, except for those items which
are non-taxable or subject to valuation allowances for which the
tax expense (benefit) was calculated at 0%. The tax benefit for
amortization is calculated in a similar manner as the tax effects
of the non-GAAP adjustments.
(k)
For 2023 and 2022, net income is reduced
by income attributable to non-controlling interest of $1 million
and $4 million, respectively.
(l)
The sum of these items does not foot due
to rounding.
(m)
Represents all amortization of intangible
assets acquired in connection with acquisitions, net of tax.
International Flavors & Fragrances
Inc. Debt Covenants (Amounts in millions)
(Unaudited)
The following information and schedules provide
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedules
are not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Credit
Adjusted EBITDA to Net (Loss)
(DOLLARS IN
MILLIONS)
Twelve Months Ended June 30,
2023
Net (loss)
$
(2,204
)
Interest expense
414
Income taxes
224
Depreciation and amortization
1,138
Specified items(1)
2,535
Non-cash items(2)
83
Credit Adjusted EBITDA
$
2,190
______________________
1.
Specified items consisted of restructuring and other charges,
impairment of goodwill, acquisition, divestiture and integration
related costs, strategic initiatives costs, regulatory costs and
other costs that are not related to recurring operations.
2.
Non-cash items consisted of gains on sale of assets, losses on
business disposals, gain on China facility relocation, write-down
of inventory related to LBK and stock-based compensation.
Net Debt to Total Debt
(DOLLARS IN
MILLIONS)
June 30, 2023
Total debt(1)
$
10,591
Adjustments:
Cash and cash equivalents(2)
641
Net debt
$
9,950
______________________
(1)
Total debt used for the calculation of net debt consisted of
short-term debt, long-term debt, short-term finance lease
obligations and long-term finance lease obligations.
(2)
Cash and cash equivalents included approximately $3 million
currently in Assets held for sale on the Consolidated Balance
Sheets.
International Flavors & Fragrances
Inc. Comparable Reportable Segment Performance
(Amounts in millions) (Unaudited)
The following information and schedule provides
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedule is
not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Net Sales
Nourish(1)
$
1,564
$
1,769
$
3,217
$
3,500
Health & Biosciences(2)
522
549
1,026
1,089
Scent
592
580
1,200
1,165
Pharma Solutions
251
244
504
493
Consolidated
$
2,929
$
3,142
$
5,947
$
6,247
Segment Adjusted Operating
EBITDA
Nourish(1)
$
181
$
358
$
389
$
687
Health & Biosciences(2)
145
166
278
340
Scent
117
93
222
209
Pharma Solutions
67
58
126
123
Total
510
675
1,015
1,359
Depreciation & Amortization
(287
)
(301
)
(563
)
(604
)
Interest Expense
(116
)
(77
)
(227
)
(149
)
Other Income (Expense), net
21
(6
)
15
10
Restructuring and Other Charges
(7
)
(7
)
(59
)
(9
)
Impairment of Long-Lived Assets
—
(120
)
—
(120
)
Acquisition, Divestiture and Integration
Related Costs
(45
)
(61
)
(76
)
(110
)
Strategic Initiatives Costs
(9
)
—
(22
)
—
Regulatory Costs
(14
)
—
(19
)
—
Other
(3
)
2
2
(5
)
Impact of Business Divestitures(3)
—
25
—
43
Impact of Business Acquisitions(4)
—
—
(2
)
—
Income Before Taxes
$
50
$
130
$
64
$
415
Segment Adjusted Operating EBITDA
Margin
Nourish
11.6
%
20.2
%
12.1
%
19.6
%
Health & Biosciences
27.8
%
30.2
%
27.1
%
31.2
%
Scent
19.8
%
16.0
%
18.5
%
17.9
%
Pharma Solutions
26.7
%
23.8
%
25.0
%
24.9
%
Consolidated
17.4
%
21.5
%
17.1
%
21.8
%
______________________
1.
Nourish sales and segment adjusted
operating EBITDA information for the three and six months ended
June 30, 2022 exclude the results of the portion of the Savory
Solutions business that was divested to present fully comparable
scenarios of the Company. The divestiture was completed on May 31,
2023.
2.
Health & Biosciences sales and segment
adjusted operating EBITDA information for the six months ended June
30, 2023 exclude the results of Health Wright Products for the
first quarter of 2023. In addition, the information for the three
and six months ended June 30, 2022 exclude the results of the
Microbial Control business unit. The exclusion of these results
help to present fully comparable scenarios of the Company as the
acquisition of Health Wright Products was completed on April 1,
2022 and the divestiture of the Microbial Control business unit was
completed on July 1, 2022. As a result, there was no impact from
Health Wright Products and the Microbial Control business unit for
the first quarter of 2022 and the three and six months ended June
30, 2023, respectively.
3.
Information related to the amounts exclude
the results of the Microbial Control business unit and the portion
of the Savory Solutions business that were divested in the third
quarter of 2022 (July 1, 2022) and second quarter of 2023 (May 31,
2023), respectively, to present fully comparable scenarios of the
Company.
4.
Information related to the amount excludes
the results of Health Wright Products for the first quarter of 2023
to present fully comparable scenarios of the Company, as the
acquisition of Health Wright Products was completed on April 1,
2022.
International Flavors &
Fragrances Inc.
GAAP to Non-GAAP
Reconciliation
Comparable Foreign Exchange
Impact
(Unaudited)
Q2
Nourish
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
(14)%
(50)%
(8.5)%
Portfolio Impact
2%
1%
(0.1)%
% Change - Comparable
(12)%
(49)%
(8.6)%
Currency Impact
3%
7%
1.2%
% Change - Currency Neutral
(9)%
(42)%
(7.4)%
Q2 Health &
Biosciences
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
(22)%
(21)%
0.1%
Portfolio Impact
17%
9%
(2.5)%
% Change - Comparable
(5)%
(13)%
(2.4)%
Currency Impact
2%
4%
0.4%
% Change - Currency Neutral
(3)%
(9)%
(2.0)%
Q2 Scent
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
2%
26%
3.8%
Portfolio Impact
0%
0%
0.0%
% Change - Comparable
2%
26%
3.8%
Currency Impact
3%
15%
1.7%
% Change - Currency Neutral
5%
41%
5.5%
Q2 Pharma
Solutions
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
3%
16%
2.9%
Portfolio Impact
0%
0%
0.0%
% Change - Comparable
3%
16%
2.9%
Currency Impact
0%
0%
0.0%
% Change - Currency Neutral
3%
16%
2.9%
Q2
Consolidated
Sales
Adjusted Operating
EBITDA
Adjusted Operating EBITDA
Margin
% Change - Reported
(11)%
(27)%
(3.8)%
Portfolio Impact
5%
3%
(0.3)%
% Change - Comparable
(7)%
(24)%
(4.1)%
Currency Impact
3%
6%
1.1%
% Change - Currency Neutral
(4)%
(18)%
(3.0)%
_______________________
Note: The sum of these items may not foot
due to rounding.
YTD
Nourish
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
(9)%
(44)%
(7.5)%
Portfolio Impact
1%
1%
0.0%
% Change - Comparable
(8)%
(43)%
(7.5)%
Currency Impact
3%
8%
1.2%
% Change - Currency Neutral
(5)%
(35)%
(6.3)%
YTD Health &
Biosciences
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
(22)%
(27)%
(1.7)%
Portfolio Impact
16%
8%
(2.4)%
% Change - Comparable
(6)%
(18)%
(4.1)%
Currency Impact
3%
4%
0.4%
% Change - Currency Neutral
(3)%
(14)%
(3.7)%
YTD Scent
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
3%
6%
0.6%
Portfolio Impact
0%
0%
0.0%
% Change - Comparable
3%
6%
0.6%
Currency Impact
4%
13%
1.4%
% Change - Currency Neutral
7%
19%
2.0%
YTD Pharma
Solutions
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
2%
2%
0.1%
Portfolio Impact
0%
0%
0.0%
% Change - Comparable
2%
2%
0.1%
Currency Impact
2%
2%
0.1%
% Change - Currency Neutral
4%
4%
0.2%
YTD
Consolidated
Sales
Adjusted Operating
EBITDA
Adjusted Operating EBITDA
Margin
% Change - Reported
(9)%
(28)%
(4.5)%
Portfolio Impact
4%
2%
(0.2)%
% Change - Comparable
(5)%
(25)%
(4.7)%
Currency Impact
3%
7%
1.0%
% Change - Currency Neutral
(2)%
(18)%
(3.7)%
_______________________
Note: The sum of these items may not foot
due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230807251943/en/
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Media.request@iff.com
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Investor.Relations@iff.com
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