Due to an improving F&F market, customer restocking and favorable comparables, International Flavors & Fragrances (IFF; New York) has announced that its first quarter 2010 results will be better than anticipated. A double-digit gain in local currency sales will be fueled by category-wide improvements, including, notably, fine fragrances. Meanwhile, developing markets—particularly Asia—are boosting growth.
Of the announcement, IFF chairman and CEO Doug Tough said, “IFF continues to execute a successful strategy that enables us to generate strong financial results. We are seeing a significant improvement in our business segments, including double-digit growth in the fine fragrance category. While we continue to see strong commercial performance relative to new customer business, a portion of this improvement can be attributed to favorable comparisons versus the year ago period as well as some elements of customer restocking. As we have realized some benefit of customer restocking, we continue to be mindful that this may well be an isolated event, as economic conditions remain fluid. As a result, we plan to monitor our performance as we look to make targeted investments to strengthen our marketplace position throughout the balance of the year.”