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.
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.