IFF finishes year on strong footing as Q4 2012 results revealed
Revenue increase of 6% to $681m
International Flavors & Fragrances Inc. (IFF) has reported a strong set of fourth quarter results for 2012, with reported revenue totaling $681m, up $37m or 6% on last year’s figure of $644m.
Excluding the impact of foreign currency, local currency sales increased by 8% “reflecting a high level of new wins and positive volume on existing business”. Net income for the quarter equaled $68.1m or $0.83 per share, up on the previous year’s net income of $24.4m or $0.30 per share.
For the Fragrance Business Unit specifically, reported revenue increased 10% to $354m in Q4, compared with $322m in Q4 2011; local currency sales also increased 13%. Furthermore, “strong new customer wins and broad-based growth” in the Fragrance Compounds business drove local currency sales growth of 15%, with double-digit growth in Latin America, Greater Asia and North America and solid growth in EAME. Fine Fragrance and Beauty Care achieved 19% local currency sales growth and Functional Fragrance delivered 12% local currency sales growth.
Doug Tough, chairman and CEO, said: “We had a strong finish to the year, driven by our diverse product portfolio, expanding geographic footprint and commitment to providing customers with innovative and superior products that are desired and enjoyed by consumers all around the world. This diversification allowed us to achieve strong broad-based growth in the fourth quarter, led by double-digit growth in the emerging markets. Both business units contributed to our gross margin performance, reflecting strong new wins from our continued focus on innovation, ongoing manufacturing leverage and the impact of exiting lower margin sales activities. Our strong top-line performance enabled us to achieve local currency sales, operating profit and EPS growth in line with our long-term targets.”
