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Jun 30, 2024
IFF Q2 2024 Earnings Report
IFF's financial performance improved notably in Q2 2024, driven by volume growth and productivity gains.
Key Takeaways
IFF reported a slight decrease in sales but a significant improvement in profitability for Q2 2024. Sales were $2.89 billion, a 1% decrease year-over-year, but comparable currency neutral sales increased by 7%. Adjusted operating EBITDA improved 22% to $588 million, and adjusted EPS excluding amortization was $1.16. The company is raising its full-year sales and adjusted operating EBITDA guidance.
Reported net sales decreased by 1% to $2.89 billion, but comparable currency neutral sales increased by 7%.
Adjusted operating EBITDA increased by 22% to $588 million, driven by volume growth and productivity gains.
Adjusted EPS excluding amortization was $1.16 per diluted share.
The company is raising its full-year sales and adjusted operating EBITDA guidance.
IFF
IFF
IFF Revenue by Segment
Revenue by Segment
Taste Revenue
CapyFin.comFood Ingredients Revenue
CapyFin.comHealth & Biosciences Revenue
CapyFin.comScent Revenue
CapyFin.comPharma Solutions Revenue
CapyFin.com Forward Guidance
The Company is increasing its expectations for the full year 2024 and now expects full year 2024 sales to be in the range of $11.1 billion to $11.3 billion versus $10.8 billion to $11.1 billion and adjusted operating EBITDA to be in the range of $2.1 billion to $2.17 billion versus $1.9 billion to $2.1 billion.
Positive Outlook
- Full year 2024 sales are expected to be in the range of $11.1 billion to $11.3 billion.
- Adjusted operating EBITDA is expected to be in the range of $2.1 billion to $2.17 billion.
- Volume is expected to be 3% to 5%.
- Improvements across the majority of the portfolio.
- Pricing is still expected to increase approximately 1%.
Challenges Ahead
- Foreign exchange will have a 3% to 4% adverse impact to sales growth.
- Certain items that impact net income and other reconciling metrics are out of the Company's control.
- These items cannot be reasonably predicted at this time.
- Acquisition, divestiture and integration related costs.
- Gains (losses) on business disposals and regulatory costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income