International Flavors & Fragrances Inc. (IFF) has released a report detailing its second quarter results. According to the report, IFF second quarter net sales reached $842.9 million, a 6% increase from the second quarter in 2016.
Among some of the attributing factors for the growth included strong sales in sweet and savory modulation, the launch of fragrance ingredient Veraspice and double-digits growth in the Middle East and Africa markets.
In addition, the report indicated specific growth among the flavor and fragrance segments:
Fragrances Business Unit
- Sales increased 4%, or $14.6 million, to $428.5 million in the second quarter, while currency neutral sales improved by 5%.
- Fragrance ingredients grew 7% led by double-digit growth in EAME and Latin America and double-digit growth in cosmetic active ingredients.
- Fine fragrances improved 10% and 11% on a currency neutral basis, attributed to the acquisition of flavor resources.
- Consumer fragrance improved by 1% driven by the acquisition of fragrance resource and low growth in the fabric care and home care category.
- Profits decreased in the fragrance segment by 3% due to unfavorable prices and weaker sales.
Flavors Business Unit
- Sales increased 9%, or $34.8 million, to $414.3 million, while currency neutral sales grew 11%.
- EAME increased 2% on a reported basis and 9% on a currency neutral basis led by growth in Western Europe and Central, Southern and Eastern Europe regions and the acquisition of David Michael.
- North America grew 30% related to the acquisition of PowderPure and David Michael.
- Latin America increased 13% and 11% on a currency neutral basis, led by double-digit growth in Colombia and Argentina.
- Flavors segment profit grew 11% on a reported basis and 14% on a currency neutral basis. The growth is attributed to acquisitions, volume growth and productivity initiatives.
“Our second quarter results finished in line with our expectations, with improved trends across several of our key financial metrics,” said IFF chairman and CEO Andreas Fibig. “We continued to advance our strategy as we drove innovation, executed our productivity programs, and benefited from acquisitions. These improvements reflect significant efforts across our entire organization as we implement our long-term strategy and generate strong returns for our shareholders.”
To read the full report, click here.