International Flavors & Fragrances Inc (IFF) Reports Q3 2023 Earnings: Sales Down 8%, ...
IFF's Q3 2023 sales decreased by 8% to $2.8 billion compared to the same period last year.
Operating EBITDA for the quarter was $506 million, with a margin of 17.9%.
IFF's net income before taxes was $59 million, and earnings per share (EPS) stood at $0.10.
Free cash flow generation was strong, led by a significant reduction in inventory.
International Flavors & Fragrances Inc (NYSE:IFF) released its Q3 2023 earnings report on November 6, 2023. The company reported a decrease in sales but strong free cash flow generation, driven by a significant reduction in inventory.
Financial Performance
IFF's Q3 2023 consolidated sales were $2.8 billion, a decrease of 8% compared to the same period last year. The company's income before taxes was $59 million, and earnings per share (EPS) stood at $0.10. The operating EBITDA for the quarter was $506 million, with a margin of 17.9%.
Management Commentary
IFF CEO Frank Clyburn commented on the company's performance, stating,
In the third quarter we delivered both sales and profit ahead of our expectations. Our volume performance improved sequentially across the majority of our business, and we continued to benefit from our pricing actions and productivity initiatives. Our emphasis to drive working capital improvement yielded strong free cash flow generation, led by a significant reduction in inventory over the course of the year."
Segment Performance
The Nourish segment reported a 7% decrease in sales on a comparable basis, while the Health & Biosciences segment saw a 2% increase. The Scent segment reported a 7% increase in sales, and the Pharma Solutions segment reported a 9% decrease.
Financial Guidance
IFF reconfirmed its full year 2023 sales guidance range of $11.3 billion to $11.6 billion and now expects to be at the mid to high end of its full year 2023 adjusted operating EBITDA guidance range of $1.85 billion to $2.0 billion.
Future Outlook
Looking ahead, IFF remains committed to delivering its previously announced full year 2023 sales guidance range. The company also believes that it can achieve full year 2023 adjusted operating EBITDA at the mid to high-end of its previously announced guidance range.
Explore the complete 8-K earnings release (here) from International Flavors & Fragrances Inc for further details.
This article first appeared on GuruFocus.
