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Sep 30, 2021
IFF Q3 2021 Earnings Report
IFF achieved strong double-digit sales growth and is on track to grow 8.5% for full year 2021.
Key Takeaways
IFF reported strong third-quarter results with a 142% increase in reported net sales, driven by the merger with Nutrition & Biosciences (N&B). On a combined basis, sales increased by 12%. Adjusted operating EBITDA increased by 135%, and adjusted EPS excluding amortization was $1.47 per diluted share. However, profitability was impacted by macro supply-chain challenges and related cost increases.
Reported net sales increased by 142% to $3.07 billion, driven by the merger with N&B.
Adjusted operating EBITDA increased by 135% to $648 million, driven by the incremental profit related to the merger with N&B.
Reported earnings per share (EPS) was $0.76, and adjusted EPS excluding amortization was $1.47 per diluted share.
Cash flow from operations increased to $1.13 billion, and free cash flow totaled $884 million.
Revenue by Segment
Forward Guidance
The Company updates its 2021 financial guidance on a combined basis due to the ongoing macro inflationary environment. Combined 2021 financial guidance 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
- Sales Year-Over-Year Growth > 8%
- FX Impact ~2%
Challenges Ahead
- Adjusted Operating EBITDA Margin ~21.0%
Historical Earnings Impact
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Avg. Return Before/After Earnings
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