IFF earnings beat analyst predictions


The company's clients include P&G, Colgate and Estée Lauder

Swiss-based company International Flavors & Fragrances (IFF) has released its latest financial results.

The company, whose clients include P&G, Colgate and Estée Lauder, reported better-than-expected earnings with $773.80m worth of revenues for the last quarter, up 4.2% overall. IFF says its fragrances arm brought home $415.1m in revenues with a 53.6% overall revenue contribution, up 4% overall.

But it was a pretty mixed picture. Greater Asian revenues including many emerging markets climbed 3%, but Europe, Africa and the Middle East saw revenues climb almost 10%. Meanwhile, US revenues dipped 3%. Fine Fragrances local currency sales lost 1% in the third quarter and although the 4% consumer fragrance growth was welcome, much of the uplift was down to better fabric care sales, IFF admitted.

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Looking ahead, with some cost reductions out of the way, IFF is looking at double digit growth for 2014. Though IFF did beat estimates, it was by a narrow margin and the Greater Asian revenues – vital for new growth catalyst – are a drag on prospects. Before going to press, IFF shares were worth almost $97. At the end of October, Deutsche Bank pinned a $111 target price on the stock.

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