IFF Achieves Reported $6B Sales in H1 with Scent Segment Up 5%
- Chaileedo Press
- Aug 8, 2023
- 2 min read
The Company anticipates that its sales for the entire year of 2023 will fall within the range of $11.3 billion to $11.6 billion, which is lower than the previous estimate of approximately $12.3 billion.
Yesterday (August 7), the global leader in the creation and production of flavors, fragrances, and specialty ingredients, International Flavors & Fragrances Inc. (IFF) released its financial report of Q2 and H1 in 2023.
In the financial report for the second quarter of 2023, IFF reported net sales of $6 billion in H1. In the Q2 2023, IFF reported net sales of $2.93 billion, remaining flat compared to the same period in the previous year. However, on a comparable basis, currency-neutral sales saw a 4% decrease due to softness in the Nourish & Health & Biosciences sector, despite continued growth in Scent and Pharma Solutions. The pricing aspect remained strong, with high-single-digit year-over-year increases, but volume was impacted by destocking, resulting in a low double-digit decline from the previous year.
As for the segment, the Scent segment second-quarter sales reached $592 million. On a comparable basis, currency-neutral sales increased by 5%, driven by double-digit growth in Consumer Fragrance and a high-single-digit increase in Fine Fragrance. Both volume and price contributed to this growth. Scent adjusted operating EBITDA for the quarter was $117 million, with an adjusted operating EBITDA margin of 19.8%. On a comparable basis, currency-neutral adjusted operating EBITDA experienced a remarkable 41% increase, primarily attributed to net favorable price to inflation and productivity gains.
The Company anticipates that its sales for the entire year of 2023 will fall within the range of $11.3 billion to $11.6 billion, which is lower than the previous estimate of approximately $12.3 billion. This revised expectation reflects the Company's belief that volumes in the second half of 2023 will not recover as initially anticipated, primarily due to ongoing customer destocking. Consequently, the Company now projects a mid- to high-single-digit decline in volume for the year, compared to the previous forecast of flat volume on a comparable basis. This decline is particularly significant in the Functional Ingredients sector. However, the Company still maintains its expectation of a mid-single-digit price increase for the full year of 2023.
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