IFF Reports Fourth Quarter and Full Year 2021 Results

International Flavors & Fragrances Inc. has released both the fourth quarter and full-year financial results, which ended December 31, 2021.

Related: IFF Expands Manufacturing in Indonesia

Fourth Quarter 2021 Consolidated Financial Results

• Reported net sales for the fourth quarter were $3.03 billion, an increase of 139% 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 fourth quarter was $114 million.
• Reported earnings per share (EPS) for the fourth quarter were $0.35.

Nourish Segment

• On a reported basis, sales were $1.63 billion. On a combined basis, currency-neutral sales improved 9% led by double-digit growth in Food Designs and Ingredients and mid-single-digit improvements in Flavors.

Health & Biosciences Segment

• On a reported basis, sales were $646 million. On a combined basis, currency-neutral sales improved 13% with strong growth across all segments led by robust double-digit performances in Health, Microbial Control, Animal Nutrition and Grain Processing.

Scent Segment

• On a reported basis, sales were $555 million. On a combined basis, currency-neutral sales improved 7% led by strong double-digit growth in Fine Fragrances and Fragrance Ingredients.

Pharma Solutions Segment

• On a reported basis, sales were $204 million. On a combined basis, currency-neutral sales improved 9% with broad-based growth.

Full Year 2021 Consolidated Financial Results

• Reported net sales for the full year were $11.66 billion, an increase of 129% 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 full year was $354 million.
• Reported earnings per share (EPS) for the full year was $1.10.
• Cash flow from operations for the full year was strong, increasing $723 million versus year-ago period, to $1.437 billion, and free cash flow defined as cash flow from operations less capital expenditures totaled $1.044 billion.

Nourish Segment

• On a reported basis, sales were $6.26 billion. On a combined basis, currency-neutral sales improved 9% led by double-digit growth in Ingredients and strong high-single-digit improvements in Flavors and Food Design.

Health & Biosciences Segment

• On a reported basis, sales were $2.33 billion. On a combined basis, currency-neutral sales improved 6% with growth in nearly all segments led by double-digit increases in Home & Personal Care and Grain Processing as well as a high-single-digit increase in Cultures & Food Enzymes.

Scent Segment

• On a reported basis, sales were $2.25 billion. On a combined basis, currency-neutral sales improved 8% driven by strong double-digit growth in Fine Fragrances and Cosmetic Actives, high-single-digit growth in Fragrance Ingredients and modest growth in Consumer Fragrances.

Pharma Solutions Segment

• On a reported basis, sales were $809 million. On a combined basis, currency-neutral sales improved 2% led by a strong double-digit performance in Industrials.

IFF chairman and CEO Andreas Fibig, said, “We are pleased to have achieved another strong year for IFF, with continued growth in sales and profitability as we advanced our transformation strategy. We finished the year ahead of our sales target, with double-digit growth in the fourth quarter driven by all business segments. I am also pleased that we achieved our synergy target and began optimizing our portfolio to create a more efficient organization and enhance value for our shareholders. I am confident that as IFF enters its next chapter, the Company will continue to deliver long-term profitable growth and provide significant benefits for all its stakeholders.”

IFF executive vice president and CFO, Glenn Richter, said, “Looking ahead, our teams are focused on pricing execution and cost discipline to improve our operational performance as well as furthering our integration and portfolio optimization efforts. These priorities are critical as we expect inflationary pressures across the supply chain to continue in 2022. We are taking significant pricing actions to fully offset our dollar cost exposure, which we expect will result in strong sales and profit growth at a more modest margin. Longer-term, we remain confident in our ability to recover margin to pre-inflation levels as we are focused on improving returns to generate strong value creation for our shareholders.”

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