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IFF Reports 10% Rise for Q3 2010 Financials
Posted: November 4, 2010
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Fragrance Business Unit
Local currency sales in the third quarter increased 15% over the prior year period as all regions reported double-digit growth. New business wins and increased volumes once again drove double-digit growth in fine fragrance. In beauty care, the strong trends in hair care and toiletries continued, as each category grew at a double-digit rate. Functional fragrance results were solid, as a double-digit performance in home care more than offset challenging year-over-year comparison from the prior year period. In fragrance ingredients, local currency sales increased 18% as continued improvements in underlying demand aided results.
Operating profit increased by $22 million to $69 million in the third quarter, including a $2 million charge related to ongoing restructuring efforts in Europe as compared to $11 million related to restructuring costs in the prior year period. Excluding these items, adjusted operating profit grew 23 percent, or $13 million to $71 million. As a result, adjusted operating profit margin for the quarter increased 190 bps to 19.0%, driven by strong new win performance, favorable input costs and benefits from ongoing profit improvement initiatives.