Post Earnings Coverage as International Flavor and Fragrance’s Net Income Grows 11 Percent

LONDON, UK / ACCESSWIRE / August 12, 2016 / Active Wall St. announces its post-earnings coverage on International Flavors & Fragrances Inc. (NYSE: IFF). The company posted its second quarter 2016 results on August 08th, 2016. The creator and manufacturer of flavors and fragrances reported better-than-expected results breaking a sequence of drops. Register with us now for your free membership at: http://www.activewallst.com/register/.

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Earnings Reviewed

For the three month ended on June 30, 2016, International Flavors & Fragrances reported net income of $116.7 million, or $1.46 a share, up 11% compared to net income of $105.4 million, or $1.29 per share, in the year ago period. Excluding certain items, the company’s earnings rose 8% to $1.47 per share from $1.36 per share in the prior year’s second quarter. International Flavors & Fragrances’ net sales for the second quarter totaled $793.5 million, an increase of 3% from $767.5 million in Q2 2015. Analysts had projected adjusted earnings of $1.40 per share on $785.6 million in sales. In the reported quarter, International Flavors & Fragrances’ gross margin increased to 46.1% up from 45% in the year-ago quarter.

Chairman and CEO of the company, Andreas Fibig, commented on the earnings:

“With respect to the second quarter of 2016, we are pleased to report our performance was consistent with our expectations for all of our key financial metrics.”

The most recent period included 1.4% fewer shares outstanding.

Segment Results

The company which was started by Stafford Allen and Charles May in 1833, reported that revenues generated from its Fragrances business were $414 million in Q2 FY16, up 5% on y-o-y basis. This division accounted for around 52.1% of net sales in the reported quarter. On a constant currency basis, revenues grew 5% on y-o-y basis despite continued weakness in its fine fragrances segment. Revenue in the company’s Flavors business totaled $379.5 million, up 2% (or 3% on a constant currency basis), accounting for approximately 47.8% of net sales.

From a geographical perspective, during Q2 FY16, the company’s revenue generated from North America increased 5% on y-o-y basis; while revenues in Europe, Africa, and the Middle East were up 5% (or 4% on currency neutral basis) as compared to the year ago period. For Q2 FY16, revenues in Greater Asia were up 6% (or 8% on a constant currency basis) as compared to Q2 FY15. Revenues from Latin American operations declined 5% (or fell 3% on a constant currency basis).

Dividend

On August 03rd, 2016, International Flavors & Fragrances announced that its Board of Directors has authorized a quarterly dividend of $0.64 per share of the company’s common stock, an increase of $0.08, or 15%, from $0.56 per share. The quarterly dividend will be payable on October 6, 2016 to shareholders of record as of September 26, 2016.

Outlook

For 2016, International Flavors & Fragrances reiterated its guidance. The company now expects sales growth in the range of 3.5% to 4.5%, on a currency neutral basis. The company is forecasting adjusted operating profit to grow in the range of 5% to 7%, while adjusted earnings are predicted to rise in the range of 6.5% to 8.5%.

Stock Performance

At the close of trading session on August 11, 2016, International Flavors & Fragrances’ stock rose 0.37% at $136.04, with a total volume of 214,245 shares changing hands. The company’s share price has gained 2.87% in the past one month and 14.77% since the beginning of the year. 

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