We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
International Flavors (IFF) Q4 Earnings Top Estimates, Down Y/Y
Read MoreHide Full Article
International Flavors & Fragrances Inc. (IFF - Free Report) reported adjusted earnings of 97 cents per share in fourth-quarter 2022, beating the Zacks Consensus Estimate of 94 cents. The bottom line declined 12% from the year-ago quarter.
Including one-time items, the company reported earnings of 1 cent per share compared with the prior-year quarter’s 35 cents.
International Flavors’ net sales came in at $2,844 million in the December quarter, down 6.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2,879 million. During the quarter, currency-neutral sales were up 4%, aided by double-digit growth in Pharma Solutions, and mid-single-digit growth in Scent and Nourish segment.
Operational Highlights
During the reported quarter, International Flavors’ cost of goods sold was down 3.7% year over year to $1,975 million. Gross profit fell 11.4% to $869 million. The gross margin came in at 30.6% compared with 32.4% in the year-ago quarter.
Research and development expenses declined 13.9% year over year to $143 million. Selling and administrative expenses were down 2.2% to $440 million during the fourth quarter. Adjusted operating EBITDA came in at $441 million, down 16.6% from the prior-year quarter’s $529 million.
On a comparable basis, currency-neutral adjusted operating EBITDA decreased 5% from the prior year. Strong pricing actions and productivity gains helped offset the impact of lower volumes. Adjusted operating EBITDA margin was 15.5% compared with the year-ago quarter’s 17.5%.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
Revenues in the Nourish segment dipped 3% year over year to $1,577 million during the December quarter. Adjusted operating EBITDA was $195 million, down 22.3%.
Revenues generated in the Health & Bioscience segment were $501 million compared with the year-earlier quarter’s $646 million. Adjusted operating EBITDA was $121 million in the quarter compared with $156 million in the prior-year quarter.
The Scent segment’s revenues came in at $545 million compared with the year-ago quarter’s $555 million. Adjusted operating EBITDA increased 8% to $95 million.
Revenues in Pharma Solutions were $221 million in the fourth quarter, gaining 8.3% year over year. Adjusted operating EBITDA declined 11.8% to $30 million.
Financial Position
International Flavors had cash and cash equivalents of $483 million at the end of 2022, down from $711 million witnessed at the end of 2021. Long-term debt was $10.4 billion at the fourth quarter’s end compared with $10.8 billion at 2021-end.
International Flavors utilized $345 million cash in operating activities in 2022, down from $1,443 million in the prior year.
Comparable currency-neutral adjusted operating EBITDA growth for 2023 is expected to be approximately flat with the prior year.
2022 Performance
The company reported adjusted earnings of $5.55 per share in 2022, beating the Zacks Consensus Estimate of $5.54. The bottom line declined 1% from 2021’s reported figure.
Including one-time items, the company reported a loss of $7.21 per share against the prior year’s earnings of $1.10.
International Flavors’ net sales came in at $12.44 billion in 2022, up 6.7% from a year ago. The top line missed the Zacks Consensus Estimate of $12.47 billion. During the year, currency-neutral sales were up 9%, aided by double-digit growth in the Pharma and Nourish segments.
2023 Guidance
International Flavors expect sales for fiscal 2023 to be around $12.5 billion. Comparable currency-neutral sales growth for 2023 is projected to be around 6%.
Adjusted EBITDA is expected to be nearly $2.34 billion. The company expects comparable currency-neutral adjusted operating EBITDA growth for 2023 to be approximately flat with the prior year.
Price Performance
In the past year, International Flavors’ shares have lost 15.2% compared with the industry’s decline of 17.8%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
International Flavors currently carries a Zacks Rank #3 (Hold).
e.l.f. Beauty has an average trailing four-quarter earnings surprise of 105%. The Zacks Consensus Estimate for ELF’s fiscal 2023 earnings is pegged at $1.36 per share. This indicates a 61.9% increase from the prior-year reported figure. The consensus estimate for fiscal 2023 earnings has moved 21.4% north in the past 60 days. ELF’s shares gained 148.4% in the past year.
The Zacks Consensus Estimate for Conagra Brands’ 2023 earnings per share is pegged at $2.66, suggesting an increase of 12.7% from that reported in the last year. The consensus estimate for 2023 earnings moved 9% upward in the last 60 days. CAG’s shares gained 3.1% in the past year.
Campbell Soup has an average trailing four-quarter earnings surprise of 8.7%. The Zacks Consensus Estimate for CPB’s 2023 earnings is pegged at $2.99 per share. This indicates a 4.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. CPB’s shares gained 17.1% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
International Flavors (IFF) Q4 Earnings Top Estimates, Down Y/Y
International Flavors & Fragrances Inc. (IFF - Free Report) reported adjusted earnings of 97 cents per share in fourth-quarter 2022, beating the Zacks Consensus Estimate of 94 cents. The bottom line declined 12% from the year-ago quarter.
Including one-time items, the company reported earnings of 1 cent per share compared with the prior-year quarter’s 35 cents.
International Flavors’ net sales came in at $2,844 million in the December quarter, down 6.2% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2,879 million. During the quarter, currency-neutral sales were up 4%, aided by double-digit growth in Pharma Solutions, and mid-single-digit growth in Scent and Nourish segment.
Operational Highlights
During the reported quarter, International Flavors’ cost of goods sold was down 3.7% year over year to $1,975 million. Gross profit fell 11.4% to $869 million. The gross margin came in at 30.6% compared with 32.4% in the year-ago quarter.
Research and development expenses declined 13.9% year over year to $143 million. Selling and administrative expenses were down 2.2% to $440 million during the fourth quarter. Adjusted operating EBITDA came in at $441 million, down 16.6% from the prior-year quarter’s $529 million.
On a comparable basis, currency-neutral adjusted operating EBITDA decreased 5% from the prior year. Strong pricing actions and productivity gains helped offset the impact of lower volumes. Adjusted operating EBITDA margin was 15.5% compared with the year-ago quarter’s 17.5%.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
International Flavors & Fragrances Inc. price-consensus-eps-surprise-chart | International Flavors & Fragrances Inc. Quote
Segmental Performances
Revenues in the Nourish segment dipped 3% year over year to $1,577 million during the December quarter. Adjusted operating EBITDA was $195 million, down 22.3%.
Revenues generated in the Health & Bioscience segment were $501 million compared with the year-earlier quarter’s $646 million. Adjusted operating EBITDA was $121 million in the quarter compared with $156 million in the prior-year quarter.
The Scent segment’s revenues came in at $545 million compared with the year-ago quarter’s $555 million. Adjusted operating EBITDA increased 8% to $95 million.
Revenues in Pharma Solutions were $221 million in the fourth quarter, gaining 8.3% year over year. Adjusted operating EBITDA declined 11.8% to $30 million.
Financial Position
International Flavors had cash and cash equivalents of $483 million at the end of 2022, down from $711 million witnessed at the end of 2021. Long-term debt was $10.4 billion at the fourth quarter’s end compared with $10.8 billion at 2021-end.
International Flavors utilized $345 million cash in operating activities in 2022, down from $1,443 million in the prior year.
Comparable currency-neutral adjusted operating EBITDA growth for 2023 is expected to be approximately flat with the prior year.
2022 Performance
The company reported adjusted earnings of $5.55 per share in 2022, beating the Zacks Consensus Estimate of $5.54. The bottom line declined 1% from 2021’s reported figure.
Including one-time items, the company reported a loss of $7.21 per share against the prior year’s earnings of $1.10.
International Flavors’ net sales came in at $12.44 billion in 2022, up 6.7% from a year ago. The top line missed the Zacks Consensus Estimate of $12.47 billion. During the year, currency-neutral sales were up 9%, aided by double-digit growth in the Pharma and Nourish segments.
2023 Guidance
International Flavors expect sales for fiscal 2023 to be around $12.5 billion. Comparable currency-neutral sales growth for 2023 is projected to be around 6%.
Adjusted EBITDA is expected to be nearly $2.34 billion. The company expects comparable currency-neutral adjusted operating EBITDA growth for 2023 to be approximately flat with the prior year.
Price Performance
In the past year, International Flavors’ shares have lost 15.2% compared with the industry’s decline of 17.8%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
International Flavors currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer Staples sector are e.l.f. Beauty, Inc. (ELF - Free Report) , Conagra Brands, Inc. (CAG - Free Report) and Campbell Soup Company (CPB - Free Report) . ELF and CAG flaunt a Zacks Rank #1 (Strong Buy) at present, while CPB has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
e.l.f. Beauty has an average trailing four-quarter earnings surprise of 105%. The Zacks Consensus Estimate for ELF’s fiscal 2023 earnings is pegged at $1.36 per share. This indicates a 61.9% increase from the prior-year reported figure. The consensus estimate for fiscal 2023 earnings has moved 21.4% north in the past 60 days. ELF’s shares gained 148.4% in the past year.
The Zacks Consensus Estimate for Conagra Brands’ 2023 earnings per share is pegged at $2.66, suggesting an increase of 12.7% from that reported in the last year. The consensus estimate for 2023 earnings moved 9% upward in the last 60 days. CAG’s shares gained 3.1% in the past year.
Campbell Soup has an average trailing four-quarter earnings surprise of 8.7%. The Zacks Consensus Estimate for CPB’s 2023 earnings is pegged at $2.99 per share. This indicates a 4.9% increase from the prior-year reported figure. The consensus estimate for 2022 earnings has been unchanged in the past 60 days. CPB’s shares gained 17.1% in the past year.