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Jun 30, 2022

IFF Q2 2022 Earnings Report

IFF's financial performance for Q2 2022, marked by sales increase and strategic execution.

Key Takeaways

IFF reported a 7% increase in net sales to $3.31 billion for the second quarter of 2022. Adjusted operating EBITDA increased by 3% to $700 million. The company reaffirms its full-year 2022 financial guidance.

Reported net sales increased by 7% to $3.31 billion, with currency neutral sales up by 11%.

Adjusted operating EBITDA rose by 3% to $700 million, driven by pricing actions and productivity gains.

Reported earnings per share (EPS) was $0.43, and adjusted EPS excluding amortization was $1.54 per diluted share.

The company reaffirms full year 2022 financial guidance, expecting sales between $12.6 billion and $13.0 billion.

Total Revenue
$3.31B
Previous year: $3.09B
+7.1%
EPS
$1.54
Previous year: $1.5
+2.7%
Operating Margin
21.2%
Previous year: 22%
-3.6%
Gross Profit
$1.14B
Previous year: $910M
+24.8%
Cash and Equivalents
$569M
Previous year: $935M
-39.1%
Free Cash Flow
-$336M
Previous year: $268M
-225.4%
Total Assets
$39.3B
Previous year: $40.9B
-3.8%

IFF

IFF

IFF Revenue by Segment

Forward Guidance

The Company reaffirms full year 2022 financial guidance. The Company continues to expect 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.

Positive Outlook

  • Sales to be approximately $12.6 billion to $13.0 billion
  • Adjusted operating EBITDA of approximately $2.5 billion to $2.6 billion
  • Comparable currency neutral sales growth of approximately 9% to 12%
  • Comparable currency neutral adjusted operating EBITDA growth to be approximately 4% to 8%

Challenges Ahead

  • Foreign exchange will negatively impact sales growth in 2022 by approximately 5 percentage points
  • Foreign exchange will negatively impact adjusted operating EBITDA growth by approximately 6 percentage points