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Mar 31, 2022
IFF Q1 2022 Earnings Report
IFF reported strong first quarter results, driven by broad-based growth and pricing actions offsetting inflationary pressures. Increased sales expectation and sharpened execution rigor to deliver sustainable growth.
Key Takeaways
IFF reported a strong start to 2022, with net sales of $3.23 billion, a 31% increase compared to the prior year, and adjusted operating EBITDA of $702 million, a 23% increase. The company has increased its sales expectation to include incremental pricing actions to fully recover cost exposure and remains committed to delivering its full-year profit objective.
Reported net sales increased by 31% to $3.23 billion, driven by the merger with Nutrition & Biosciences.
Comparable currency neutral sales increased by 13%, led by double-digit growth in Nourish, Health & Biosciences, and Pharma Solutions.
Adjusted operating EBITDA increased by 23% to $702 million, driven by the merger with N&B.
Reported earnings per share (EPS) was $0.96; adjusted EPS excluding amortization was $1.69 per diluted share.
IFF
IFF
IFF Revenue by Segment
Revenue by Segment
Scent Revenue
CapyFin.com Forward Guidance
The Company expects full year 2022 sales to be approximately $12.6 billion to $13.0 billion, with an expected full year 2022 adjusted operating EBITDA of approximately $2.5 billion to $2.6 billion. The Company expects to deliver comparable currency neutral sales growth of approximately 9% to 12% for the full year 2022. The Company continues to expect comparable currency neutral adjusted operating EBITDA growth for 2022 to be approximately 4% to 8%.
Positive Outlook
- Sales expectation increased to $12.6B-$13.0B
- Comparable currency neutral sales growth of approximately 9%-12%
- Adjusted operating EBITDA of approximately $2.5B-$2.6B
- Comparable currency neutral adjusted operating EBITDA growth of approximately 4%-8%
- Addition of Health Wright Products acquisition
Challenges Ahead
- Expected Microbial Control divestiture
- Foreign exchange will negatively impact sales growth by approximately 4 percentage points
- Foreign exchange will negatively impact adjusted operating EBITDA growth by approximately 5 percentage points
- Additional inflation throughout the year
- Microbial Control divestiture anticipated to be complete on July 1, 2022