IFF Reports Q1 Sales Results

May 11th, 2021

Kira Haslett

IFF's reported Q1 sales reflected strong, healthy growth, with a fruitful outlook on the rest of the year.

International Flavors & Fragrances Inc. (IFF) has reported financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Consolidated Financial Results

Reported net sales for the first quarter were $2.47 billion, an increase of 83% compared to the prior year period, driven primarily by the incremental sales related to the merger with Nutrition & Biosciences ("N&B").
Loss before taxes on a reported basis for the first quarter was $54 million. Adjusted operating EBITDA for the first quarter was $569 million, an increase of 88% from $303 million in 2020 driven primarily by the incremental profit related to the merger with N&B.
Reported earnings per share (EPS) for the first quarter was $(0.21).
Cash flow from operations for the first quarter was strong at $358 million, and free cash flow defined as cash flow from operations less capital expenditures totaled $265 million.

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First Quarter 2021 Segment Summary: Growth vs. Prior Year

Nourish Segment

On a reported basis, first quarter sales were $1.3 billion.
Nourish adjusted operating EBITDA was $270 million.

Health & Biosciences Segment

On a reported basis, first quarter sales were $426 million.
Health & Biosciences adjusted operating EBITDA was $128 million.

Scent Segment

On a reported basis, first quarter sales were $569 million.
Scent adjusted operating EBITDA was $128 million, and adjusted operating EBITDA margin expanded by 70 bps to 22.5% led by higher volumes, favorable mix, and productivity initiatives.

Pharma Solutions Segment

On a reported basis, first quarter sales were $162 million.
Pharma Solutions adjusted operating EBITDA was $43 million.

Fruit Preparation Divestiture

IFF’s fruit preparation business produces fruit, vegetable, herb, meat and fish preparation solutions for the food, beverage and pet food markets. The divestiture is expected to close in the third quarter 2021, pending customary closing conditions, including regulatory approvals. The fruit preparation business contributed approximately $70 million to IFF's Nourish segment pro forma sales in 2020. Full financial terms of the agreement have not been disclosed.

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