Echoing earlier forward-looking statements, IFF (New York) has reported first quarter 2010 revenue of $654 million, a gain of 17% year-over-year.
Flavor sales grew 13%, led by double-digit growth in Europe, Africa and the Middle East and Greater Asia. North American sales, meanwhile, dipped 1% as a result of weakness in confectionery. Growth in savory, confectionery and dairy boosted Latin American sales by 13%.
Fragrance sales rose 21% in the period, powered by gains in all categories: fine and beauty care (31%), functional (12%), and ingredients (24%). Emerging markets contributed significantly to results; Greater Asia, for example, posted double-digit growth in every category. Overall, hair care and toiletries drove beauty care results, while resurgent demand raised ingredient sales.
Of the results, CEO and chairman Doug Tough said, "We continued to see solid momentum throughout the quarter as both our flavor and fragrance teams did an excellent job capitalizing on new business opportunities. The combination of this strong commercial performance as well as some elements of customer restocking and favorable year-over-year comparisons, allowed us to deliver strong local currency sales growth ... We continue to be mindful that economic conditions remain fluid and that a portion of our success can be attributed to the benefits of customer restocking as well as favorable comparisons versus a soft year-ago period. Nonetheless, we feel confident that the underlying health of our commercial performance is strong and as a result, we will continue to monitor our performance throughout the balance of the year as we look to make targeted investments to strengthen our marketplace position."