International Flavors & Fragrances Inc. reported financial results for the second quarter ended June 30, 2021.
- Reported net sales for the second quarter were $3.09 billion, an increase of 158% compared to the prior-year period, driven primarily by the incremental sales related to the merger with Nutrition & Biosciences ("N&B").
- Income before taxes on a reported basis for the second quarter was $44 million. Adjusted operating EBITDA for the second quarter was $679 million, an increase of 184% from $239 million in 2020.
- Reported earnings per share (EPS) for the second quarter were $0.11. Adjusted EPS excluding amortization was $1.50 per diluted share.
- Cash flow from operations for the second quarter was strong, increasing 235% versus the year-ago period, to $698 million.
- On a reported basis, second-quarter sales were $1.7 billion.
- Nourish adjusted operating EBITDA was $324 million.
Health & Biosciences Segment
- On a reported basis, second-quarter sales were $639 million.
- Health & Biosciences adjusted operating EBITDA was $190 million.
- On a reported basis, second-quarter sales were $550 million.
- Scent adjusted operating EBITDA was $117 million.
Pharma Solutions Segment
- On a reported basis, second-quarter sales were $232 million.
- Pharma Solutions adjusted operating EBITDA was $48 million.
On August 5, 2021, the Board of Directors authorized a 3%, or $0.02 increase, in the quarterly dividend to $0.79 per share of the company’s common stock.
IFF chairman and CEO, Andreas Fibig, said, "We delivered a strong second-quarter performance, with double-digit sales growth and a solid improvement in overall profitability. Both businesses performed well—with legacy IFF growing strong double-digits and legacy N&B improving mid-single digits—all while we continue to successfully integrate two great organizations. Our synergy realization is on track and the overall business performance underscores the strength and diversity of our portfolio as well as our position as an essential partner to our customers."
IFF executive vice president and CFO, Rustom Jilla, commented, “Profit and free cash flow were both solid in the second quarter, with broad-based improvements versus the year-ago period. We continued to optimize our cost structure, implement price increases and capture cost synergies to support profitability, however, the margin in the second quarter was adversely impacted by higher raw material and logistics costs. As we look ahead, we are confident that our cash flow generation will remain robust, and have announced that we are raising our quarterly dividend, marking the twelfth consecutive year of dividend increases.”
Andreas Fibig concluded, “We have increased our sales expectation for the full year, and now expect to deliver approximately 7% growth on a combined company basis. Given the inflationary environment, we are successfully increasing prices over time and driving expense reductions to support long-term profitability—albeit we have some short-term pressure in 2021. We are also investing in incremental capacity and strategically increasing inventory levels in our high-value businesses to ensure we maintain strong top-line momentum while improving returns moving forward.”