IFF Q4, Full-Year Results; Goldstein Retires

IFF (New York) has reported fourth quarter 2005 sales of $461.6 million, increasing 1 percent in local currencies. (All percentage gains and losses are measured against the same period 2004, with figures reported in local currencies.) Fine fragrance sales for the quarter increased 16 percent, while flavor increased 1 percent.

Full-year 05: IFF has reported 2005 sales of $1.99 billion, a decrease of 3 percent in comparison to the prior year. Fine fragrance sales rose 8 percent, while flavor sales decreased 7 percent. North America fragrance and flavor sales declined 1 percent and 7 percent, respectively. Europe sales declined 8 percent, with fragrance sales remaining flat and flavor sales declining 19 percent. Asia Pacific sales increased 2 percent with flavors increasing 3 percent and fragrance sales declining 2 percent. Latin America sales increased 10 percent with fragrance and flavor sales increasing 7 percent and 21 percent, respectively. India sales increased 14 percent with flavor sales increasing 14 percent and fragrance sales increased 12 percent. Net income for 2005 decreased 2 percent. Gross profit, as a percentage of sales, was 41.4 percent compared to 42.9 percent in the prior year.

In January 2006, IFF announced plans to eliminate 300 positions—about 6 percent of the workforce. As a result of these actions, the company anticipates recording pre-tax restructuring charges of $25 million to $30 million. Of this, $23.3 million was recognized in the fourth quarter 2005. The remaining charges are expected to be recognized in the first half of 2006.

In related news, IFF has announced that chairman and CEO Richard Goldstein plans to retire on May 9, 2006. The company is currently working to identify Goldstein’s successor. Goldstein has served as chairman and CEO of the company since June 2000.

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