Emerging markets drive 7% sales rise for IFF
Quarterly earnings for US based International Flavors and Fragrances (IFF) rose 7% in the fourth quarter of 2013
Quarterly earnings for US based International Flavors and Fragrances (IFF) rose 7% in the fourth quarter of 2013 compared to the prior year quarter, reaching US$725m. This reflected solid sales growth in both the Flavor and Fragrance business units, fuelled by double-digit growth in the emerging markets, the company said.
Revenue for the full year increased 5% to $3bn, with emerging markets accounting for 49% of full year sales having grown 10% from the previous year.
The Fragrance business unit saw reported revenue increase 8% to $382m. Fragrance Compounds, including both fine fragrance and beauty care and functional fragrances, achieved sales growth of 9%, thanks to volume growth from new business which offset the erosion of volume on existing business. Fragrance compounds growth was also supported by double-digit growth in Greater Asia and EAME and solid growth in both Latin America and North America.
Fragrance Ingredients fell 3% over the quarter, because of the planned transition of some volume from Ingredients to Compounds. Without this, it would have experienced positive growth for the second consecutive quarter, the company said.
Fine Fragrance and Beauty Care achieved 9% local currency sales growth, while Functional Fragrance achieved 10% local currency sales growth due to strong growth in fabric care.
“We are very pleased with our fourth quarter performance, which benefited significantly from the diversity of our businesses and end-use categories in both the developed and emerging markets,” said Doug Tough, Chairman and CEO of IFF. “The emerging markets continue to be a primary driver of our topline growth, and accounted for half of our consolidated sales and a majority of our top line local currency sales increase."
“We are very excited about the future profitable growth of IFF and believe we are well positioned to deliver another strong year in 2014,” he added.
