International Flavors & Fragrances Inc. has reported strong financial results for the second quarter ended June 30, 2022.
IFF CEO Frank Clyburn said, "We continued to execute on our near-term operational priorities to achieve strong top and bottom-line results in the second quarter. Our teams have acted with urgency to implement necessary pricing actions in collaboration with our customers and delivered productivity benefits that offset on-going inflationary pressures. Going forward, we are preparing for more uncertain market conditions, yet remain confident in delivering our full-year financial objectives. At the same time, we are advancing our strategic efforts, deploying innovation, refining our portfolio and strengthening our culture to deliver strong value creation for all our stakeholders. Reflecting our confidence, we are pleased to announce that we are raising our quarterly dividend. This marks thirteen years of consecutive dividend increases and underscores our belief in our business and strong future cash-flow generation.”
Highlights of the report include:
- Reported net sales for the second quarter were $3.31 billion, an increase of 7% compared to the prior-year period.
- Income before taxes on a reported basis for the second quarter was $130 million. Adjusted operating EBITDA for the second quarter was $700 million, an increase of 3% from $679 million in the prior-year period.
- Reported earnings per share (EPS) for the second quarter was $0.43.
- Cash flow from operations at the end of the second quarter was $(100) million, and free cash flow defined as cash flow from operations less capital expenditures totaled $(336) million.
- On a reported basis, second quarter sales were $1.82 billion. On a comparable basis, currency-neutral sales grew 15% led by double-digit growth in Food Designs and high single-digit growth in Flavors.
Health & Biosciences Segment
- On a reported basis, second quarter sales were $665 million. On a comparable basis, currency-neutral sales increased by 4% led by double-digit growth in Microbial Control, high single-digit increases in Health and Cultures & Food Enzymes and a mid-single-digit increase in Animal Nutrition.
- On a reported basis, second quarter sales were $580 million. On a comparable basis, currency-neutral sales increased 9% with double-digit growth in Fine Fragrance, high single-digit growth in Fragrance Ingredients and low single-digit growth from Consumer Fragrance.
Pharma Solutions Segment
- On a reported basis, second quarter sales were $244 million. On a comparable basis, currency-neutral sales increased 10% with double-digit growth in Industrial and a high single-digit increase in Pharma.