International Flavors & Fragrances Returns to Quarterly Profit Growth

International Flavors & Fragrances Inc. on Monday reported a higher profit for its June quarter, breaking a string of declines.

Chief Executive Andreas Fibig said company executives remained "cautiously optimistic" that they will meet financial targets given global economic conditions.

Shares, which set a high last week at $136.75, rose 1% to $134 in after-hours trading.

IFF, which competes with the likes of Switzerland's Givaudan SA, makes flavors and fragrances found in an array of products, from cosmetics to detergents, yogurts and ice cream. And although the company is based in the U.S., it has most of its business abroad. In 2015, about 77% of net sales were to customers outside the U.S., according to regulatory filings.

The company, which traces its roots to the 1800s, has been aggressively expanding through acquisitions. It targets $500 million to $1 billion in additional sales through acquisitions as part of its long-term business plan.

Over all, IFF reported a profit of $116.7 million, or $1.46 a share, compared with $105.4 million, or $1.29 a share, a year earlier. Excluding certain items, profit rose to $1.47 a share, from $1.36 a share a year earlier. Sales rose 3%, or 4% adjusting for currency conversions, to $793.5 million.

Analysts had projected $1.40 a share on $785.6 million in sales. The most recent period included 1.4% fewer shares outstanding.

Gross margin improved to 46.1% from 45% a year earlier.

Fragrance revenue rose 5% in the most recent period, despite continued weakness in its fine fragrances segment. Sales in its flavors segment rose 2%, or 3% when adjusted for currency conversions.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

August 08, 2016 17:35 ET (21:35 GMT)

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