We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
International Flavors and Fragrances Inc | NYSE:IFF | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.17 | -0.20% | 86.64 | 87.71 | 85.91 | 87.09 | 1,501,753 | 01:00:00 |
Regulatory News:
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris: IFF) reported financial results and strategic achievements for the third quarter ended September 30, 2015.
Third Quarter 2015 Consolidated Summary: Growth vs. Prior Year ¹
Reported (GAAP) Adjusted (Non-GAAP) Adjusted Currency Neutral SalesOperatingProfit
EPS SalesOperatingProfit
EPS SalesOperatingProfit
EPS Consolidated (1)% 3% 0% (1)% 7% 5% 7% 10% 10% Acquisition Impact 3% 3% 1% 3% 2% 3%¹ Schedules at the end of this release contain reconciliations of reported GAAP to non-GAAP metrics.
Win Where We Compete: achieve market leadership position in key markets, categories & customers
Innovating Firsts: strengthen position and drive differentiation in priority R&D platforms
Become Our Customers’ Partner of Choice: attain commercial excellence
Strengthen and Expand the Portfolio: pursue value creation through collaborations & acquisitions
Management Commentary
“We are pleased to report strong financial results in the third quarter, despite ongoing volatility in many key international markets,” said Chairman and CEO Andreas Fibig. “Thanks in large part to the diversity of our business and our recent acquisitions, we achieved strong revenue growth, gross margin expansion and double-digit increases in adjusted operating profit and adjusted EPS – all on a currency neutral basis.
“Currency neutral sales improved 7%, including three percentage points of growth relating to the acquisition of Ottens Flavors and Lucas Meyer Cosmetics. Overall our top-line performance continues to be driven by strong new wins, particularly in Fragrance Compounds, where the contributions from new wins were at the highest levels in nearly two years. Adjusted operating profit and adjusted EPS on a currency neutral basis grew at a rate faster than sales, both up 10%, as we benefitted from gross margin expansion and fixed cost leverage.
“With a focus on building greater differentiation, accelerating profitable growth and increasing shareholder value, we continued to make strides against our Vision 2020 strategy. In North America – one of the areas we are targeting for leadership positions – the Flavors team has done a nice job integrating our recent acquisition of Ottens Flavors. Leveraging their defined go-to-market strategy – geared toward ensuring we are the partner of choice for key regional accounts – Flavors North America was up 19%. In China, Fragrances grew 6% on a currency neutral basis, despite the volatile economic environment, as we continued to have success with many of the strong regional Consumer Fragrance brands.
“Delivery systems across both flavors and fragrances continued to drive growth. The strong trends in Fabric Care and Beverage continued in the third quarter, led by our encapsulation technology in fragrances and proprietary delivery system in flavors. We were also pleased with the sales of our sweetness and savory modulation portfolios which continued to produce strong results, increasing strong double-digits.
“In addition to the strides we have made from a market share and innovation perspective, we also made progress in our never-ending quest to “become our customers’ partner of choice.” Capitalizing on the trends in naturals, IFF-LMR Naturals received its fourth “For Life” Social Responsibility designation for its Haitian Vetiver operations. We are proud that our commitment to embedding sustainability throughout our business practices and our corporate culture is being acknowledge as evident by our recent CDP Climate “A” List perfect score. We also won an innovation award in North America with one of our largest Flavors customers, which recognizes partners for their thought leadership, and were awarded a supplier excellence award with a large Fine Fragrance customer.
“Strengthening and expanding our portfolio is a focus of ours as we diligently pursue value-creation opportunities in partnerships and collaborations. In the third quarter, we completed the acquisition of Lucas Meyer Cosmetics which helped us expand our product offerings beyond flavors and fragrances into cosmetic active ingredients. We are pleased to report that Lucas Meyer Cosmetics achieved strong double-digit currency neutral sales growth on a standalone basis – a good indication that we are putting our capital to work in areas that accelerate growth. To maintain our legacy of pioneering firsts, we also announced a partnership with Vapor Communications, which we believe will put us on the forefront of digital scent in the years to come.
“Based on our strong year-to-date results and our outlook for more modest sales growth in the fourth quarter – due to challenging comparisons that include an extra week of sales in the prior year – we continue to believe we can deliver 6% full year 2015 currency neutral sales growth, including acquisitions. To correspond with our top-line performance, we continue to believe we can deliver approximately 9% adjusted operating profit growth and 10% adjusted EPS growth, both on a currency neutral basis for full year 2015”.
Third Quarter 2015 Segment Summary: Growth vs. Prior Year
Reported (GAAP) Currency Neutral SalesSegmentProfit
SalesSegmentProfit
Fragrances: (2)% 5% 6% 15% Acquisition Impact 2% 1% 2% 2% Flavors: 0% 0% 8% 9% Acquisition Impact 4% 3% 5% 3%Fragrances Business Unit
Flavors Business Unit
FY 2015 Guidance: Growth vs. Prior Year
The Company full year 2015 remains:
SalesOperatingProfit
EPS % Change - Adjusted (Non-GAAP) -1% 4% 5% Negative Currency Impact 7ppt 5ppt 5ppt % Change - Currency Neutral (Adjusted) 6% 9% 10%A copy of the Company’s Quarterly Report on Form 10-Q will be available on its website at www.iff.com or at sec.gov by November 11, 2015.
Audio Webcast
A live webcast to discuss the Company’s third quarter 2015 financial results will be held on November 10, 2015, at 10:00 a.m. EST. Investors may access the webcast and accompanying slide presentation on the Company's website at www.iff.com under the Investor Relations section. For those unable to listen to the live broadcast, a recorded version of the webcast will be made available on the Company's website approximately one hour after the event and will remain available on IFF’s website for one year.
Meet IFF
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris: IFF) is a leading innovator of sensorial experiences that move the world. At the heart of our company, we are fueled by a sense of discovery, constantly asking “what if?”. That passion for exploration drives us to co-create unique products that consumers taste, smell, or feel in fine fragrances and beauty, detergents and household goods, as well as beloved foods and beverages. Our 6,200 team members globally take advantage of leading consumer insights, research and development, creative expertise, and customer intimacy to develop differentiated offerings for consumer products. Learn more at www.iff.com, Twitter and LinkedIn.
Cautionary Statement Under The Private Securities Litigation Reform Act of 1995
This press release includes “forward-looking statements” under the Federal Private Securities Litigation Reform Act of 1995, including statements regarding our outlook for the fourth quarter and full year 2015, expected returns from our recent acquisitions and partnerships, and our ability to generate shareholder returns and sustain our long-term growth performance. These forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in the Company’s Securities and Exchange Commission filings, including the Company’s Annual Report on Form 10-K filed with the Commission on March 2, 2015. The Company wishes to caution readers that certain important factors may have affected and could in the future affect the Company’s actual results and could cause the Company’s actual results for subsequent periods to differ materially from those expressed in any forward-looking statements made by or on behalf of the Company. With respect to the Company’s expectations regarding these statements, such factors include, but are not limited to: (1) the Company’s ability to implement its Vision 2020 strategy; (2) volatility and increases in the price of raw materials, energy and transportation; (3) the economic and political risks associated with the Company’s international operations; (4) the Company’s ability to benefit from its investments and expansion in emerging markets; (5) fluctuations in the quality and availability of raw materials; (6) changes in consumer preferences and demand for the Company’s products or a decline in consumer confidence and spending; (7) the Company’s ability to implement its business strategy, including the achievement of anticipated cost savings, profitability, realization of price increases and growth targets; (8) the Company’s ability to successfully develop new and competitive products that appeal to its customers and consumers; (9) the impact of a disruption in the Company’s supply chain or its relationship with its suppliers; (10) the impact of currency fluctuations or devaluations in the Company’s principal foreign markets; (11) any adverse impact on the availability, effectiveness and cost of the Company’s hedging and risk management strategies; (12) the effects of any unanticipated costs and construction or start-up delays in the expansion of the Company’s facilities; (13) the Company’s ability to successfully execute acquisitions, collaborations and joint ventures; (14) the Company’s ability to manage unanticipated costs and other adverse financial impacts in connection with its acquisitions; (15) the effect of legal and regulatory proceedings, as well as restrictions imposed on the Company, its operations or its representatives by U.S. and foreign governments; (16) adverse changes in federal, state, local and foreign tax legislation or adverse results of tax audits, assessments, or disputes; and (17) changes in market conditions or governmental regulations relating to our pension and postretirement obligations. New risks emerge from time to time and it is not possible for management to predict all such risk factors or to assess the impact of such risks on the Company’s business. Accordingly, the Company undertakes no obligation to publicly revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
International Flavors & Fragrances Inc. Consolidated Income Statement(Amounts in thousands except per diluted share data)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30, 2015 2014%Change
2015 2014%Change
Net sales $ 765,092 $ 773,813 (1 )% $ 2,307,540 $ 2,332,451 (1 )% Cost of goods sold 417,966 433,702 (4 )% 1,269,097 1,298,281 (2 )% Gross profit 347,126 340,111 2 % 1,038,443 1,034,170 0 % Research and development expenses 62,750 63,701 (1 )% 188,725 191,635 (2 )% Selling and administrative expenses 127,663 123,212 4 % 382,560 379,864 1 % Restructuring and other charges, net — 608 (100 )% (170 ) 912 (119 )% Operating profit 156,713 152,590 3 % 467,328 461,759 1 % Interest expense 11,855 10,968 8 % 34,357 34,048 1 % Other expense (income), net 1,959 (563 ) (448 )% (3,315 ) (3,761 ) (12 )% Income before taxes 142,899 142,185 1 % 436,286 431,472 1 % Taxes on income 36,452 34,770 5 % 96,206 107,064 (10 )% Net income $ 106,447 $ 107,415 (1 )% $ 340,080 $ 324,408 5 % Earnings per share - basic $ 1.32 $ 1.32 $ 4.20 $ 3.98 Earnings per share - diluted $ 1.31 $ 1.31 $ 4.18 $ 3.95 Average shares outstanding Basic 80,330 80,942 80,602 80,981 Diluted 80,737 81,508 81,052 81,556International Flavors & Fragrances Inc. Condensed Consolidated Balance Sheet
(Amounts in thousands)
(Unaudited)
September 30, December 31, 2015 2014 Cash & cash equivalents $ 272,276 $ 478,573 Receivables 569,608 493,768 Inventories 589,463 568,729 Other current assets 207,404 168,957 Total current assets 1,638,751 1,710,027 Property, plant and equipment, net 708,902 720,268 Goodwill and other intangibles, net 1,255,361 752,041 Other assets 308,671 312,285 Total assets $ 3,911,685 $ 3,494,621 Bank borrowings and overdrafts, and current portion of long-term debt $ 133,056 $ 8,090 Other current liabilities 554,264 510,718 Total current liabilities 687,320 518,808 Long-term debt 1,057,992 934,232 Non-current liabilities 570,224 518,892 Shareholders' equity 1,596,149 1,522,689 Total liabilities and shareholders' equity $ 3,911,685 $ 3,494,621International Flavors & Fragrances Inc. Consolidated Statement of Cash Flows
(Amounts in thousands)
(Unaudited)
Nine Months Ended September 30, 2015 2014 Cash flows from operating activities: Net income $ 340,080 $ 324,408 Adjustments to reconcile to net cash provided by operating activities: Depreciation and amortization 65,099 68,678 Deferred income taxes 13,134 7,496 Gain on disposal of assets (341 ) (2,351 ) Stock-based compensation 18,355 19,627 Pension contributions (61,125 ) (34,493 ) Changes in assets and liabilities, net of acquisitions: Trade receivables (108,563 ) (47,929 ) Inventories (31,655 ) (21,609 ) Accounts payable 54,482 (2,459 ) Accruals for incentive compensation (13,781 ) (45,482 ) Other current payables and accrued expenses 34,585 (977 ) Other assets/liabilities, net (15,575 ) 52,594 Net cash provided by operating activities 294,695 317,503 Cash flows from investing activities: Cash paid for acquisitions, net of cash received (including $15 million of contingent consideration related to the Aromor acquisition in 2014) (493,469 ) (102,500 ) Additions to property, plant and equipment (66,632 ) (97,820 ) Proceeds from life insurance contracts 868 17,750 Maturity of net investment hedges 9,735 (472 ) Proceeds from disposal of assets 3,431 2,506 Net cash used in investing activities (546,067 ) (180,536 ) Cash flows from financing activities: Cash dividends paid to shareholders (113,875 ) (95,113 ) Net change in bank borrowings and overdrafts — 8,926 Deferred financing costs — (1,023 ) Repayments of debt (30,000 ) — Proceeds from issuance or drawdown of long-term debt 279,998 4,100 Proceeds from issuance of stock under stock plans 288 1,361 Excess tax benefits on stock-based payments 11,704 6,080 Purchase of treasury stock (81,237 ) (52,453 ) Net cash provided by (used in) financing activities 66,878 (128,122 ) Effect of exchange rates changes on cash and cash equivalents (21,803 ) (9,514 ) Net change in cash and cash equivalents (206,297 ) (669 ) Cash and cash equivalents at beginning of year 478,573 405,505 Cash and cash equivalents at end of period $ 272,276 $ 404,836International Flavors & Fragrances Inc. Business Unit Performance
(Amounts in thousands)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net Sales Flavors $ 359,103 $ 358,708 $ 1,108,689 $ 1,100,726 Fragrances 405,989 415,105 1,198,851 1,231,725 Consolidated 765,092 773,813 2,307,540 2,332,451 Segment Profit Flavors 79,803 79,747 256,546 258,614 Fragrances 90,893 86,615 252,416 259,253 Global Expenses (6,874 ) (12,882 ) (27,067 ) (49,182 ) Restructuring and other charges, net — (608 ) 170 (912 ) Acquisition and related costs (6,830 ) — (13,896 ) — Operational improvement initiative costs (279 ) (282 ) (841 ) (6,014 ) Operating profit 156,713 152,590 467,328 461,759 Interest Expense (11,855 ) (10,968 ) (34,357 ) (34,048 ) Other income, net (1,959 ) 563 3,315 3,761 Income before taxes $ 142,899 $ 142,185 $ 436,286 $ 431,472 Operating Margin Flavors 22.2 % 22.2 % 23.1 % 23.5 % Fragrances 22.4 % 20.9 % 21.1 % 21.0 % Consolidated 20.5 % 19.7 % 20.3 % 19.8 %International Flavors & Fragrances Inc. Sales Performance by Region and Category
(Unaudited)
Third Quarter 2015 vs. 2014 Percentage Change in Sales by Region of Destination FineConsumerFragrances
Ingredients Total Frag. Flavors Total North America Reported 4 % 8 % 4 % 6 % 19 % 13 % EAME Reported -11 % -12 % -9 % -11 % -12 % -11 % Currency Neutral 5 % 5 % 6 % 5 % 4 % 5 % Latin America Reported -13 % 9 % -5 % 2 % 9 % 4 % Currency Neutral -8 % 13 % 9 % 7 % 20 % 11 % Greater Asia Reported -23 % 2 % 6 % 2 % -6 % -3 % Currency Neutral -22 % 5 % 7 % 4 % 0 % 2 % Total Reported -9 % 0 % -3 % -2 % 0 % -1 % Currency Neutral 1 % 7 % 6 % 6 % 8 % 7 % First Nine Months 2015 vs. First Nine Months 2014 Percentage Change in Sales by Region of Destination FineConsumerFragrances
Ingredients Total Frag. Flavors Total North America Reported -5 % 4 % -11 % -2 % 11 % 5 % EAME Reported -10 % -7 % -9 % -8 % -9 % -9 % Currency Neutral 7 % 10 % 2 % 7 % 6 % 7 % Latin America Reported -11 % 12 % -1 % 5 % 10 % 7 % Currency Neutral -7 % 15 % 2 % 8 % 18 % 11 % Greater Asia Reported 2 % 0 % 1 % 0 % -1 % -1 % Currency Neutral 3 % 2 % 7 % 3 % 3 % 3 % Total Reported -9 % 1 % -7 % -3 % 1 % -1 % Currency Neutral 0 % 8 % 0 % 5 % 8 % 6 %Currency neutral growth is calculated by translating prior year sales at the exchange rates used for the corresponding 2015 period.
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
Foreign Exchange Impact
(Unaudited)
Q3 Consolidated
SalesOperatingProfit
EPS % Change - Reported (GAAP) -1% 3% 0% Items Impacting Comparability 0% 4% 5% % Change - Adjusted (Non-GAAP) -1% 7% 5% Currency Impact 8% 3% 5% % Change - Currency Neutral (Adjusted) 7% 10% 10%Q3 Flavors
SalesSegmentProfit
% Change - Reported (GAAP) 0% 0% Currency Impact 8% 9% % Change - Currency Neutral 8% 9%Q3 Fragrances
SalesSegmentProfit
% Change - Reported (GAAP) -2% 5% Currency Impact 8% 10% % Change - Currency Neutral 6% 15%YTD Consolidated
SalesOperatingProfit
EPS % Change - Reported (GAAP) -1% 1% 6% Items Impacting Comparability 0% 2% -1% % Change - Adjusted (Non-GAAP) -1% 3% 5% Currency Impact 7% 6% 6% % Change - Currency Neutral (Adjusted) 6% 9% 11%YTD Flavors
SalesSegmentProfit
% Change - Reported (GAAP) 1% -1% Currency Impact 7% 8% % Change - Currency Neutral 8% 7%YTD Fragrances
SalesSegmentProfit
% Change - Reported (GAAP) -3% -3% Currency Impact 8% 11% % Change - Currency Neutral 5% 8%Currency neutral growth is calculated by translating prior year amounts at the exchange rates used for the corresponding 2015 period.
International Flavors & Fragrances Inc.GAAP to Non-GAAP Reconciliation(Amounts in thousands)(Unaudited)
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Third Quarter 2015 Items Impacting ComparabilityReported(GAAP)
OperationalImprovementInitiativeCosts
Acquisitionrelated costs
Adjusted(Non-GAAP)
Net sales 765,092 Cost of goods sold 417,966 (279) (a) (2,465) (b) 415,222 Gross profit 347,126 279 2,465 349,870 Research and development expenses 62,750 Selling and administrative expenses 127,663 (4,365) (b) 123,298 RSA Expense 190,413 Restructuring and other charges, net — Operating profit 156,713 279 6,830 163,822 Interest expense 11,855 Other expense (income), net 1,959 Income before taxes 142,899 279 6,830 150,008 Taxes on income 36,452 70 829 37,351 Net income 106,447 209 6,001 112,657 Earnings per share - diluted $ 1.31 $ — $ 0.07 $ 1.39 (c) (a) Related to a partial plant closing in Asia. (b)Transaction costs related to acquisitions (Ottens Flavors andLucas Meyer Cosmetics) as well as expense related to the fairvalue step up of inventory on the Lucas Meyer acquisition.
(c) Item does not foot due to rounding. *The Company tracks the amount of amortization recorded onrecent acquisitions in order to monitor its progress with respectto its Vision 2020 goals. The following amounts were recordedwith respect to recent acquisitions: $3.5M.
Third Quarter 2014 Items Impacting ComparabilityReported(GAAP)
Restructuringand OtherCharges
OperationalImprovementInitiativeCosts
Adjusted(Non-GAAP)
Net sales 773,813 Cost of goods sold 433,702 (282) (b) 433,420 Gross profit 340,111 282 340,393 Research and development expenses 63,701 Selling and administrative expenses 123,212 RSA Expense 186,913 Restructuring and other charges, net 608 (608) (a) - Operating profit 152,590 608 282 153,480 Interest expense 10,968 Other expense (income), net (563) Income before taxes 142,185 608 282 143,075 Taxes on income 34,770 213 70 35,053 Net income 107,415 395 212 108,022 Earnings per share - diluted $ 1.31 $ 0.01 $ — $ 1.32 (a) Costs related to the Fragrance Ingredients Rationalization. (b) Related to plant closing in Europe and partial closing in Asia.
International Flavors & Fragrances Inc.GAAP to Non-GAAP Reconciliation(Amounts in thousands)(Unaudited)
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Third Quarter Year-to-Date 2015 Items Impacting ComparabilityReported(GAAP)
Restructuringand OtherCharges
OperationalImprovementInitiative Costs
Acquisitionrelatedcosts
Taxsettlements
Adjusted(Non-GAAP)
Net sales 2,307,540 Cost of goods sold 1,269,097 (841) (b) (3,309) (c) 1,264,947 Gross profit 1,038,443 841 3,309 1,042,593 Research and development expenses 188,725 Selling and administrative expenses 382,560 (10,587) (c) 371,973 RSA Expense 571,285 Restructuring and other charges, net (170) 170 (a) — Operating profit 467,328 (170) 841 13,896 481,895 Interest expense 34,357 Other expense (income), net (3,315) Income before taxes 436,286 (170) 841 13,896 450,853 Taxes on income 96,206 (60) 210 1,879 10,478 (d) 108,713 Net income 340,080 (110) 631 12,017 (10,478) 342,140 Earnings per share - diluted $ 4.18 $ — $ 0.01 $ 0.15 $ (0.13) $ 4.20 (e) (a) Costs related to the Fragrance Ingredients Rationalization (b) Related to plant closings in Europe and partial closing in Asia (c)Transaction costs related to acquisitions (Ottens Flavors and Lucas Meyer Cosmetics) as well as expenserelated to the fair value step up of inventory for both acquisitions.
(d)Settlements due to favorable tax rulings in jurisdictions for which reserves were previously recorded forongoing tax disputes.
(e) Item does not foot due to rounding *The Company tracks the amount of amortization recorded on recent acquisitions in order to monitor itsprogress with respect to its Vision 2020 goals. The following amounts were recorded with respect to recentacquisitions: $4.7M.
Third Quarter Year-to-Date 2014 Items Impacting ComparabilityReported(GAAP)
Restructuringand OtherCharges
OperationalImprovementInitiative Costs
Adjusted(Non-GAAP)
Net sales 2,332,451 Cost of goods sold 1,298,281 (5,100) (a) (914) (b) 1,292,267 Gross profit 1,034,170 5,100 914 1,040,184 Research and development expenses 191,635 Selling and administrative expenses 379,864 RSA Expense 571,499 Restructuring and other charges, net 912 (912) — Operating profit 461,759 6,012 914 468,685 Interest expense 34,048 Other expense (income), net (3,761) Income before taxes 431,472 6,012 914 438,398 Taxes on income 107,064 2,104 227 109,395 Net income 324,408 3,908 687 329,003 Earnings per share - diluted $ 3.95 $ 0.05 $ 0.01 $ 4.01 (a) Costs related to the Fragrance Ingredients Rationalization (b) Related to plant closings in Europe and partial closing in Asia
View source version on businesswire.com: http://www.businesswire.com/news/home/20151109006754/en/
International Flavors & Fragrances Inc.VP, Global Corporate Communications & Investor Relations:Michael DeVeau, 212-708-7164
1 Year International Flavors an... Chart |
1 Month International Flavors an... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions