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Sep 30, 2024
IFF Q3 2024 Earnings Report
IFF reported a strong performance in the third quarter, with growth across all business segments, driven by market recovery and customer needs, resulting in significant bottom-line improvement.
Key Takeaways
IFF reported a 4% increase in net sales to $2.93 billion for the third quarter of 2024. Volume grew high-single digits and improved across all businesses. Adjusted EPS excluding amortization was $1.04 per diluted share, a 17% increase. The company is increasing its full year 2024 financial guidance.
Reported net sales increased by 4% to $2.93 billion, with a 9% increase on a comparable currency neutral basis.
Adjusted operating EBITDA improved by 16% on a comparable basis, driven by volume growth and productivity gains.
Adjusted EPS excluding amortization increased by 17% to $1.04 per diluted share.
The company is increasing its expectations for the full year 2024.
IFF
IFF
IFF Revenue by Segment
Revenue by Segment
Scent Revenue
CapyFin.com Forward Guidance
The Company is increasing its expectations for the full year 2024. It now expects sales to be in the range of $11.3 billion to $11.4 billion and adjusted operating EBITDA to be at the high-end of its previously communicated guidance range of $2.1 billion to $2.17 billion.
Positive Outlook
- Sales expected to be in the range of $11.3 billion to $11.4 billion.
- Adjusted operating EBITDA expected to be at the high-end of its previously communicated guidance range of $2.1 billion to $2.17 billion.
- Volume to increase 5% to 6%.
- Improvements across the majority of the portfolio.
- Company expects that foreign exchange will have an approximately 3% adverse impact to sales growth.
Challenges Ahead
- Pricing impact is now expected to be flat versus approximately a 1% increase previously.
- Impact of foreign exchange rate changes in emerging markets.
- Foreign exchange will have an approximately 3% adverse impact to sales growth.
- Cannot reconcile its expected adjusted operating EBITDA without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time.
- These items include but are not limited to acquisition, divestiture and integration related costs, gains (losses) on business disposals and regulatory costs.