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 Lag Estimates, Dip Y/Y
Read MoreHide Full Article
International Flavors & Fragrances Inc. (IFF - Free Report) reported adjusted earnings of 72 cents per share in the fourth-quarter 2023, missing the Zacks Consensus Estimate of 75 cents. The bottom line declined 13% from the year-ago quarter.
Including one-time items, the company reported a loss of $10.21 per share compared with the prior-year quarter’s loss of 10 cents.
International Flavors’ net sales were $2.70 billion in the December-end quarter, down 5% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2.72 billion. In the quarter, currency-neutral sales were up 1%, aided by growth in the Scent, and Health & Biosciences segments.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
In the reported quarter, International Flavors’ cost of goods sold was down 6.7% year over year to $1.8 billion. Gross profit fell 1% to $860 million. The gross margin came in at 31.8% compared with 30.6% in the year-ago quarter.
Research and development expenses increased 10% year over year to $157 million. Selling and administrative expenses were up 1% to $444 million in the fourth quarter. Adjusted operating EBITDA came in at $461 million, up 4.5% from the prior-year quarter’s $441 million.
On a comparable basis, currency-neutral adjusted operating EBITDA increased 22% from the prior year. The upside was driven by volume growth, price increases and productivity gains. The adjusted operating EBITDA margin was 17.1% compared with the year-ago quarter’s 15.6%.
Segment Performances
Revenues in the Nourish segment fell 11.6% year over year to $1.39 billion in the December-end quarter. On a comparable basis, currency-neutral sales were down 3%. The figure beat our estimate of $1.37 billion.
The segment’s adjusted operating EBITDA was $165 million, down 15.4% year over year. On a comparable basis, currency-neutral adjusted operating EBITDA increased 3%, driven by gains from price increases and productivity improvements. Our estimate for the segment’s adjusted EBITDA was $162 million.
Revenues generated in the Health & Bioscience segment were $528 million compared with the year-earlier quarter’s $501 million. Currency-neutral sales rose 5% on a comparable basis. Growth was aided by a double-digit performance in Health. Our estimate was $511 million for the same.
The adjusted operating EBITDA was $162 million in the quarter compared with $121 million in the prior-year quarter. Price increases and productivity gains led to the improvement. Our model had projected an EBITDA of $116 million for the segment.
The Scent segment’s revenues were $578 million compared with the year-ago quarter’s $527 million. Currency-neutral sales improved 11%, led by double-digit growth in Consumer Fragrance and mid-single-digit growth in Fine Fragrance. The figure surpassed our estimate of $563 million.
The segment’s adjusted operating EBITDA increased 13.7% year over year to $108 million. On a comparable basis, currency-neutral adjusted operating EBITDA improved 34%, owing to volume growth, favorable price and productivity gains. The figure beat our projection of $102 million.
Revenues in Pharma Solutions were $203 million in the fourth quarter , down 8.1% year over year. The segment’s sales, per our model, were $223 million. The adjusted operating EBITDA plunged 13.3% year over year to $26 million, as lower volumes negated the gains from higher pricing and productivity improvements. The figure was lower than our projection of $34 million.
Financial Position
International Flavors had cash and cash equivalents of $703 million at the end of 2023, up from $483 million at the end of 2022. Long-term debt was $9.2 billion at the 2023-end compared with $10.4 billion at 2022-end. International Flavors utilized $1.44 billion in cash in operating activities in 2023, up from $0.39 billion in the prior year.
2023 Performance
The company reported adjusted earnings of $3.34 per share in 2023, in line with the Zacks Consensus Estimate. The bottom line declined 38% from 2022. Including one-time items, the company reported a loss of $10.05 per share compared with the prior year’s loss of $7.32.
International Flavors’ net sales came in at $11.48 billion in 2023, down 7.7% from a year ago. The top line missed the Zacks Consensus Estimate of $11.49 billion. During the year, currency-neutral sales were down 1%. Growth in the Scent, and Health & Biosciences segments were offset by declines in the Pharma and Nourish segments.
2024 Guidance
International Flavors expects sales for fiscal 2024 between $10.8 billion and $11.1 billion. Volume is anticipated to be flat to up 3%. The company expects pricing to decline around 2.5% year over year.
Adjusted EBITDA is expected between $1.9 billion and $2.1 billion.
Price Performance
In the past year, International Flavors’ shares have lost 10.3% compared with the industry’s decline of 23.3%.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
International Flavors currently carries a Zacks Rank #3 (Hold).
Fomento Económico Mexicano has an average trailing four-quarter earnings surprise of 23.2%. The Zacks Consensus Estimate for FMX’s fiscal 2024 earnings is pegged at $5.90 per share. The consensus estimate for 2023 earnings has moved 3% north in the past 60 days. Its shares gained 45.2% in the last year.
e.l.f. Beauty has an average trailing four-quarter earnings surprise of 69.2%. The Zacks Consensus Estimate for ELF’s fiscal 2024 earnings is pegged at $3.04 per share. This indicates an 83.1% increase from the prior-year reported figure. The consensus estimate for fiscal 2024 earnings has moved 13% north in the past 60 days. ELF shares have gained 134% in the past year.
The Zacks Consensus Estimate for Inter Parfums’ fiscal 2024 earnings per share is pegged at $4.78, indicating growth of 20.4% from the prior-year actual. Earnings estimates have moved 1% north in the past 60 days. IPAR’s shares have gained 29.5% in the past year.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
International Flavors (IFF) Q4 Earnings Lag Estimates, Dip Y/Y
International Flavors & Fragrances Inc. (IFF - Free Report) reported adjusted earnings of 72 cents per share in the fourth-quarter 2023, missing the Zacks Consensus Estimate of 75 cents. The bottom line declined 13% from the year-ago quarter.
Including one-time items, the company reported a loss of $10.21 per share compared with the prior-year quarter’s loss of 10 cents.
International Flavors’ net sales were $2.70 billion in the December-end quarter, down 5% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $2.72 billion. In the quarter, currency-neutral sales were up 1%, aided by growth in the Scent, and Health & Biosciences segments.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
International Flavors & Fragrances Inc. price-consensus-eps-surprise-chart | International Flavors & Fragrances Inc. Quote
Operational Highlights
In the reported quarter, International Flavors’ cost of goods sold was down 6.7% year over year to $1.8 billion. Gross profit fell 1% to $860 million. The gross margin came in at 31.8% compared with 30.6% in the year-ago quarter.
Research and development expenses increased 10% year over year to $157 million. Selling and administrative expenses were up 1% to $444 million in the fourth quarter. Adjusted operating EBITDA came in at $461 million, up 4.5% from the prior-year quarter’s $441 million.
On a comparable basis, currency-neutral adjusted operating EBITDA increased 22% from the prior year. The upside was driven by volume growth, price increases and productivity gains. The adjusted operating EBITDA margin was 17.1% compared with the year-ago quarter’s 15.6%.
Segment Performances
Revenues in the Nourish segment fell 11.6% year over year to $1.39 billion in the December-end quarter. On a comparable basis, currency-neutral sales were down 3%. The figure beat our estimate of $1.37 billion.
The segment’s adjusted operating EBITDA was $165 million, down 15.4% year over year. On a comparable basis, currency-neutral adjusted operating EBITDA increased 3%, driven by gains from price increases and productivity improvements. Our estimate for the segment’s adjusted EBITDA was $162 million.
Revenues generated in the Health & Bioscience segment were $528 million compared with the year-earlier quarter’s $501 million. Currency-neutral sales rose 5% on a comparable basis. Growth was aided by a double-digit performance in Health. Our estimate was $511 million for the same.
The adjusted operating EBITDA was $162 million in the quarter compared with $121 million in the prior-year quarter. Price increases and productivity gains led to the improvement. Our model had projected an EBITDA of $116 million for the segment.
The Scent segment’s revenues were $578 million compared with the year-ago quarter’s $527 million. Currency-neutral sales improved 11%, led by double-digit growth in Consumer Fragrance and mid-single-digit growth in Fine Fragrance. The figure surpassed our estimate of $563 million.
The segment’s adjusted operating EBITDA increased 13.7% year over year to $108 million. On a comparable basis, currency-neutral adjusted operating EBITDA improved 34%, owing to volume growth, favorable price and productivity gains. The figure beat our projection of $102 million.
Revenues in Pharma Solutions were $203 million in the fourth quarter , down 8.1% year over year. The segment’s sales, per our model, were $223 million. The adjusted operating EBITDA plunged 13.3% year over year to $26 million, as lower volumes negated the gains from higher pricing and productivity improvements. The figure was lower than our projection of $34 million.
Financial Position
International Flavors had cash and cash equivalents of $703 million at the end of 2023, up from $483 million at the end of 2022. Long-term debt was $9.2 billion at the 2023-end compared with $10.4 billion at 2022-end.
International Flavors utilized $1.44 billion in cash in operating activities in 2023, up from $0.39 billion in the prior year.
2023 Performance
The company reported adjusted earnings of $3.34 per share in 2023, in line with the Zacks Consensus Estimate. The bottom line declined 38% from 2022. Including one-time items, the company reported a loss of $10.05 per share compared with the prior year’s loss of $7.32.
International Flavors’ net sales came in at $11.48 billion in 2023, down 7.7% from a year ago. The top line missed the Zacks Consensus Estimate of $11.49 billion. During the year, currency-neutral sales were down 1%. Growth in the Scent, and Health & Biosciences segments were offset by declines in the Pharma and Nourish segments.
2024 Guidance
International Flavors expects sales for fiscal 2024 between $10.8 billion and $11.1 billion. Volume is anticipated to be flat to up 3%. The company expects pricing to decline around 2.5% year over year.
Adjusted EBITDA is expected between $1.9 billion and $2.1 billion.
Price Performance
In the past year, International Flavors’ shares have lost 10.3% compared with the industry’s decline of 23.3%.
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 Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) , e.l.f. Beauty, Inc. (ELF - Free Report) and Inter Parfums, Inc. (IPAR - Free Report) . FMX flaunts a Zacks Rank #1 (Strong Buy) at present, and ELF and IPAR have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fomento Económico Mexicano has an average trailing four-quarter earnings surprise of 23.2%. The Zacks Consensus Estimate for FMX’s fiscal 2024 earnings is pegged at $5.90 per share. The consensus estimate for 2023 earnings has moved 3% north in the past 60 days. Its shares gained 45.2% in the last year.
e.l.f. Beauty has an average trailing four-quarter earnings surprise of 69.2%. The Zacks Consensus Estimate for ELF’s fiscal 2024 earnings is pegged at $3.04 per share. This indicates an 83.1% increase from the prior-year reported figure. The consensus estimate for fiscal 2024 earnings has moved 13% north in the past 60 days. ELF shares have gained 134% in the past year.
The Zacks Consensus Estimate for Inter Parfums’ fiscal 2024 earnings per share is pegged at $4.78, indicating growth of 20.4% from the prior-year actual. Earnings estimates have moved 1% north in the past 60 days. IPAR’s shares have gained 29.5% in the past year.