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Sep 30, 2022
IFF Q3 2022 Earnings Report
IFF's financial performance was reported for Q3 2022, showing mixed results amidst a challenging operating environment.
Key Takeaways
IFF reported flat sales compared to the prior-year period, but experienced a significant loss before taxes due to a goodwill impairment charge. Adjusted operating EBITDA increased slightly on a currency neutral basis, driven by pricing actions and productivity gains. The company is proceeding cautiously due to challenging market conditions.
Reported net sales were $3.06 billion, flat versus the prior-year period.
Loss before taxes was $(2.04) billion, impacted by a $2.25 billion goodwill impairment charge.
Adjusted EPS excluding amortization was $1.36 per diluted share.
Free cash flow totaled $(155) million, impacted by higher inventory value.
Revenue by Segment
Forward Guidance
The Company expects full year 2022 sales to be approximately $12.4 billion to $12.5 billion, with an expected full year 2022 adjusted operating EBITDA to be in line and at the low-end of the Company's previous $2.5 billion to $2.6 billion range.
Positive Outlook
- Strong sales momentum
- Steady advancements in profitability
- Overall improvement in leverage profile
- Advancing innovation efforts to support customers
- Driving greater cost efficiencies
Challenges Ahead
- Challenging operating environment
- Unfavorable impact from foreign exchange
- Market conditions have become more challenging
- Lower business projections due to adverse macroeconomic impacts on volume
Historical Earnings Impact
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Avg. Return Before/After Earnings
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