International Flavors & Fragrances Inc. has released a report of financial results for the third quarter ended September 30, 2021.
Highlights of the report include:
- Reported net sales for the third quarter were $3.07 billion, an increase of 142% compared to the prior-year period, driven primarily by the incremental sales related to the merger with Nutrition & Biosciences.
- Income before taxes on a reported basis for the third quarter was $250 million.
- Reported earnings per share (EPS) for the third quarter was $0.76.
- Cash flow from operations for the third quarter was strong, increasing $711 million versus the year-ago period, to $1.13 billion, and free cash flow defined as cash flow from operations less capital expenditures totaled $884 million.
- On a reported basis, third-quarter sales were $1.66 billion. On a combined basis, currency-neutral sales improved 15% led by broad-based double-digit growth across all segments.
Health & Biosciences Segment
- On a reported basis, third-quarter sales were $618 million. On a combined basis, currency-neutral sales increased 5% with growth across nearly all segments led by a double-digit increase in Home & Personal Care and strong increases in Cultures & Food Enzymes and Grain Processing.
- On a reported basis, third-quarter sales were $580 million. On a combined basis, currency-neutral sales increased 9% against a strong high-single-digit year-ago comparison. Results were led by strong double-digit growth in Fine Fragrances, Cosmetic Actives and Fragrance Ingredients as well as modest growth in Consumer Fragrances.
Pharma Solutions Segment
- On a reported basis, third-quarter sales were $211 million. On a combined basis, currency-neutral sales were down 2% as continued challenges related to raw material availability and logistics have limited the company’s ability to meet strong customer demand.
IFF chairman and CEO, Andreas Fibig, said, “We are pleased by the strong demand trends we’ve seen in our business and proud that we achieved double-digit sales growth for a second consecutive quarter. Across a large portion of our portfolio, we are growing at an accelerated rate—all as we continue to successfully integrate and deliver on our synergy commitments. These results are indicative of our best-in-class product portfolio, industry-leading innovation and our position as an essential partner to our customers."
Mr. Fibig concluded, "In the short-term, unprecedented macro supply-chain challenges and related cost increases have impacted our profitability margin. We are confident in our team's ability to manage through these conditions and fully offset pressures over time as we increase pricing, drive additional productivity, and continue to exhibit strong cost discipline. While the global supply chain environment remains volatile, we are confident in our long-term value creation opportunity as we execute our strategy and drive our business forward.”