IFF’s Q4 challenges despite strong scent performance, 2024 outlook “cautiously optimistic”
21 Feb 2024 --- International Flavors & Fragrances (IFF) has released its financial results for the fourth quarter and full year ending December 2023.
For 2023, reported net sales totaled US$11.48 billion, an 8% decrease from the previous year. Despite this, the Scent segment notably demonstrated resilience, offset by “softness” in Nourish and Pharma Solutions.
IFF reports US$2.39 billion in sales in the Scent segment for 2023, with currency-neutral sales increasing by 8%, led by growth in both the Fine Fragrance and Consumer Fragrance categories.
“I am thrilled to join IFF at such an important and dynamic time for the company and our industry. In the fourth quarter, IFF delivered solid results, including a sequential improvement in volume and double-digit adjusted operating EBITDA growth on a comparable currency-neutral basis,” comments IFF CEO Erik Fyrwald.
“In line with our commitment to strengthen our capital structure, we have updated our dividend policy to enable faster deleveraging and provide improved financial flexibility. As we look ahead, we recognize that the operating environment remains uncertain, yet we are cautiously optimistic that we can deliver improved financial results for our shareholders in 2024.”
Fyrwald is optimistic about the company’s future amidst dynamic market conditions.Q4 financial highlights
In the fourth quarter of 2023, reported net sales were US$2.70 billion, reflecting a 5% decrease compared to the previous year. In contrast, the Scent and Health & Biosciences segments saw growth, accounting for 1% increase in currency-neutral sales.
Fyrwald is optimistic about the company’s future amidst dynamic market conditions.
IFF’s Scent segment experienced growth, with reported sales of US$578 million in the fourth quarter. Currency-neutral sales increased by 11%, fueled by performance in the Consumer Fragrance and Fine Fragrance categories.
According to the fragrance giant, the Scent segment’s adjusted operating EBITDA grew by 34% on a comparable basis, driven by volume growth, price increases and productivity gains.
Looking ahead
IFF anticipates full-year 2024 sales to range between US$10.8 billion and US$11.1 billion, with adjusted operating EBITDA expected to be between US$1.9 billion and US$2.1 billion.
For most of its portfolio, the company expects volume to increase while pricing is expected to decrease by about 2.5%.
Edited by Venya Patel
