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Dec 31, 2023
IFF Q4 2023 Earnings Report
IFF's financial performance in Q4 2023 showed a decrease in reported net sales, but an increase in comparable currency neutral sales, driven by growth in Scent and Health & Biosciences. Adjusted operating EBITDA increased, led by favorable net pricing and productivity gains.
Key Takeaways
IFF reported a decrease in net sales for Q4 2023, but experienced growth in Scent and Health & Biosciences segments. The company faced a significant loss before taxes due to a non-cash goodwill impairment charge. However, adjusted operating EBITDA increased, driven by pricing and productivity gains.
Reported net sales decreased by 5%, but comparable currency neutral sales increased by 1% due to growth in Scent and Health & Biosciences.
Loss before taxes was $2.64 billion, primarily due to a $2.6 billion non-cash goodwill impairment charge.
Adjusted operating EBITDA increased by 17% on a comparable currency neutral basis, driven by favorable net pricing and productivity gains.
Adjusted EPS excluding amortization was $0.72 per diluted share.
Revenue by Segment
Forward Guidance
Full year 2024 sales are expected to be in the range of $10.8 billion to $11.1 billion and full year 2024 adjusted operating EBITDA to be in the range of $1.9 billion to $2.1 billion.
Positive Outlook
- Volume to be 0% to 3%, with improved trends across the majority of the portfolio
- Comparable currency neutral adjusted operating EBITDA is expected to grow at a faster rate than sales, growing 3% to 11%
- Growth driven by improving volumes
- Growth driven by productivity gains
Challenges Ahead
- Operating environment remains uncertain
- Pricing is expected to decline approximately 2.5%, principally driven by reductions in Functional Ingredients and Fragrance Ingredients
- Reductions given lower input costs
- Reductions given competitive dynamics
- Foreign exchange will have a 0% to 1% adverse impact to sales growth and an approximately 2% to 3% adverse impact to adjusted operating EBITDA growth in 2024.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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