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Mar 31, 2021
IFF Q1 2021 Earnings Report
IFF delivered solid first quarter financials, achieving top and bottom-line growth.
Key Takeaways
IFF reported a net sales increase of 83% to $2.47 billion, driven by the merger with Nutrition & Biosciences (N&B). Adjusted operating EBITDA increased by 88% to $569 million, with an adjusted operating EBITDA margin of 23.1%. The company has also entered into an agreement to divest its fruit preparation business.
Reported net sales increased by 83% to $2.47 billion, driven by the N&B merger.
Adjusted operating EBITDA increased by 88% to $569 million, with margin expansion of 30 bps to 23.1%.
Reported earnings per share (EPS) was $(0.21), while adjusted EPS excluding amortization was $1.60 per diluted share.
Cash flow from operations was $358 million, and free cash flow totaled $265 million.
IFF
IFF
IFF Revenue by Segment
Revenue by Segment
Scent Revenue
CapyFin.com Forward Guidance
The Company updates 2021 financial guidance on a combined basis, which is defined as a full 12 months of legacy IFF results, and 11 months (excludes January) of N&B results, in the 2021 period, in light of the merger completion on February 1, 2021.
Positive Outlook
- Increased sales forecast for the full year, driven by higher volumes
- Foreign exchange benefits
- Pricing actions to help reduce the impact of higher raw material and logistics costs
- Focus on cost reduction
- Confidence that we can achieve our full year adjusted operating EBITDA goal on a combined basis
Challenges Ahead
- Higher raw material and logistics costs
- Impact of COVID-19 and other public health crises
- Risks related to the integration of N&B and the Frutarom business
- Unanticipated costs, liabilities, charges or expenses resulting from the Frutarom acquisition and the N&B Transaction
- Economic, regulatory and political risks associated with our international operations