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 Q3 Earnings Miss Estimates, Sales Rise Y/Y
Read MoreHide Full Article
International Flavors & Fragrances Inc. (IFF - Free Report) reported adjusted earnings of $1.04 per share in third-quarter 2024, missing the Zacks Consensus Estimate of $1.06 per share. However, the bottom line improved 17% from the year-ago quarter.
Including one-time items, the company reported earnings of 23 cents per share compared with the prior-year quarter’s 10 cents per share.
International Flavors’ net sales rose 3.7% year over year to $2.93 billion and surpassed the Zacks Consensus Estimate of $2.83 billion. On a comparable basis, currency-neutral sales were up 9% compared with last year’s quarter.
The upside was driven by double-digit growth in the Health & Biosciences and Scent segments, as well as high-single digit rise in Nourish and Pharma Solutions segments. In the third quarter, volume improved across all businesses and was up high-single digits.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
In the reported quarter, International Flavors’ cost of goods sold was down 1.2% year over year to $1.87 billion. The gross profit improved 13.9% year over year to $1.05 billion. The gross margin was 36% compared with 32.8% in the year-ago quarter.
Research and development expenses increased 3% year over year to $162 million. The selling and administrative expenses rose 11% year over year to $495 million in the third quarter.
The adjusted operating EBITDA was $568 million, up 12.3% from the prior-year quarter’s $506 million. The adjusted operating EBITDA margin was 19.4% compared with the year-ago quarter’s 17.9%.
IFF’s Q3 Segmental Performances
Revenues in the Nourish segment improved 2.6% year over year to $1.49 billion in the September-end quarter. On a comparable basis, currency-neutral sales were up 7%. The figure came in higher than our estimate of segment sales of $1.36 billion.
The segment’s adjusted operating EBITDA was $206 million, up 15.7% year over year. Our estimate for the segment’s adjusted EBITDA was $198 million.
Revenues generated in the Health & Bioscience segment were $570 million compared with the year-earlier quarter’s figure of $518 million. Currency-neutral sales rose 12% on a comparable basis. Our estimate was $555 million for the same.
The adjusted operating EBITDA was $173 million in the third quarter compared with $150 million in the prior-year quarter. Our model had projected EBITDA of $155 million for the segment.
The Scent segment’s revenues were $613 million compared with the year-ago quarter’s $615 million. Currency-neutral sales improved 10%, driven by double-digit growth in Consumer Fragrance and Fine Fragrance and a high-single-digit increase in Fragrance Ingredients. The figure was lower than our estimate of $656 million.
The adjusted operating EBITDA fell 3.1% year over year to $127 million. The figure was lower than our projection of $139 million.
Revenues in Pharma Solutions were $256 million in the third quarter, up 8% year over year. Our estimate was $240 million for the same. Currency-neutral sales improved 8%, which was led by volume growth. The adjusted operating EBITDA rose 31.9% year over year to $62 million. Our model had projected EBITDA of $44 million for the segment.
International Flavors’ Q3 Cash Flow & Balance Sheet Updates
International Flavors had cash and cash equivalents of $567 million at the third quarter of 2024-end, down from $709 million at the end of 2023. Long-term debt was around $8.6 billion at the third-quarter end, down from $9.2 billion recorded as of Dec. 31, 2023.
International Flavors generated $702 million in operating activities in the first nine months of fiscal 2024 compared with $795 million in the prior year’s comparable period.
IFF’s 2024 Guidance
International Flavors expects sales in the range of $11.3-$11.4 billion. Its prior stated expectation was $11.1-$11.3 billion.
Volume is expected to increase in the band of 5-6%, indicating an uptick from the prior expectation of 3-5%. This reflects improvement across all segments. The company expects pricing to be flat compared with the prior expectation of a 1% increase.
Adjusted EBITDA is expected to be at the high-end of $2.1 billion to $2.17 billion.
International Flavors’ Price Performance
In the past year, International Flavors’ shares have gained 40.2% against the industry’s 0.8% decline.
Performance of Other Chemical - Specialty Stocks in Q3
Axalta Coating Systems (AXTA - Free Report) reported third quarter 2024 earnings of 59 cents per share, beating the Zacks Consensus Estimate of 51 cents per share. AXTA posted earnings of 45 cents per share in the year ago quarter.
It posted net sales of $1.32 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate of $1.31 billion. The top-line increased 0.8% year-over-year.
Blachem Corporation (BCPC - Free Report) reported third-quarter 2024 earnings of $1.03 per share, in line with the Zacks Consensus Estimate. The company posted earnings of 90 cents per share in the year ago quarter.
Blachem posted net sales of $240 million for the quarter ended September 2024, missing the Zacks Consensus Estimate of $243. The topline fell 4.3% year-over-year.
Ecolab Inc.’s (ECL - Free Report) adjusted earnings in the third quarter 2024 quarter were $1.83 per share, up from year ago’s $1.54. The figure surpassed the Zacks Consensus Estimate of $1.82.
ECL reported net sales of $3.99 billion for the quarter, missing the Zacks Consensus Estimate $4.02 billion. The company’s top-line increased 1% year-over-year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
International Flavors Q3 Earnings Miss Estimates, Sales Rise Y/Y
International Flavors & Fragrances Inc. (IFF - Free Report) reported adjusted earnings of $1.04 per share in third-quarter 2024, missing the Zacks Consensus Estimate of $1.06 per share. However, the bottom line improved 17% from the year-ago quarter.
Including one-time items, the company reported earnings of 23 cents per share compared with the prior-year quarter’s 10 cents per share.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
International Flavors’ net sales rose 3.7% year over year to $2.93 billion and surpassed the Zacks Consensus Estimate of $2.83 billion. On a comparable basis, currency-neutral sales were up 9% compared with last year’s quarter.
The upside was driven by double-digit growth in the Health & Biosciences and Scent segments, as well as high-single digit rise in Nourish and Pharma Solutions segments. In the third quarter, volume improved across all businesses and was up high-single digits.
International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise
International Flavors & Fragrances Inc. price-consensus-eps-surprise-chart | International Flavors & Fragrances Inc. Quote
International Flavors’ Q3 Margins Improve Y/Y
In the reported quarter, International Flavors’ cost of goods sold was down 1.2% year over year to $1.87 billion. The gross profit improved 13.9% year over year to $1.05 billion. The gross margin was 36% compared with 32.8% in the year-ago quarter.
Research and development expenses increased 3% year over year to $162 million. The selling and administrative expenses rose 11% year over year to $495 million in the third quarter.
The adjusted operating EBITDA was $568 million, up 12.3% from the prior-year quarter’s $506 million. The adjusted operating EBITDA margin was 19.4% compared with the year-ago quarter’s 17.9%.
IFF’s Q3 Segmental Performances
Revenues in the Nourish segment improved 2.6% year over year to $1.49 billion in the September-end quarter. On a comparable basis, currency-neutral sales were up 7%. The figure came in higher than our estimate of segment sales of $1.36 billion.
The segment’s adjusted operating EBITDA was $206 million, up 15.7% year over year. Our estimate for the segment’s adjusted EBITDA was $198 million.
Revenues generated in the Health & Bioscience segment were $570 million compared with the year-earlier quarter’s figure of $518 million. Currency-neutral sales rose 12% on a comparable basis. Our estimate was $555 million for the same.
The adjusted operating EBITDA was $173 million in the third quarter compared with $150 million in the prior-year quarter. Our model had projected EBITDA of $155 million for the segment.
The Scent segment’s revenues were $613 million compared with the year-ago quarter’s $615 million. Currency-neutral sales improved 10%, driven by double-digit growth in Consumer Fragrance and Fine Fragrance and a high-single-digit increase in Fragrance Ingredients. The figure was lower than our estimate of $656 million.
The adjusted operating EBITDA fell 3.1% year over year to $127 million. The figure was lower than our projection of $139 million.
Revenues in Pharma Solutions were $256 million in the third quarter, up 8% year over year. Our estimate was $240 million for the same. Currency-neutral sales improved 8%, which was led by volume growth. The adjusted operating EBITDA rose 31.9% year over year to $62 million. Our model had projected EBITDA of $44 million for the segment.
International Flavors’ Q3 Cash Flow & Balance Sheet Updates
International Flavors had cash and cash equivalents of $567 million at the third quarter of 2024-end, down from $709 million at the end of 2023. Long-term debt was around $8.6 billion at the third-quarter end, down from $9.2 billion recorded as of Dec. 31, 2023.
International Flavors generated $702 million in operating activities in the first nine months of fiscal 2024 compared with $795 million in the prior year’s comparable period.
IFF’s 2024 Guidance
International Flavors expects sales in the range of $11.3-$11.4 billion. Its prior stated expectation was $11.1-$11.3 billion.
Volume is expected to increase in the band of 5-6%, indicating an uptick from the prior expectation of 3-5%. This reflects improvement across all segments. The company expects pricing to be flat compared with the prior expectation of a 1% increase.
Adjusted EBITDA is expected to be at the high-end of $2.1 billion to $2.17 billion.
International Flavors’ Price Performance
In the past year, International Flavors’ shares have gained 40.2% against the industry’s 0.8% decline.
Image Source: Zacks Investment Research
IFF’s Zacks Rank
International Flavors currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Chemical - Specialty Stocks in Q3
Axalta Coating Systems (AXTA - Free Report) reported third quarter 2024 earnings of 59 cents per share, beating the Zacks Consensus Estimate of 51 cents per share. AXTA posted earnings of 45 cents per share in the year ago quarter.
It posted net sales of $1.32 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate of $1.31 billion. The top-line increased 0.8% year-over-year.
Blachem Corporation (BCPC - Free Report) reported third-quarter 2024 earnings of $1.03 per share, in line with the Zacks Consensus Estimate. The company posted earnings of 90 cents per share in the year ago quarter.
Blachem posted net sales of $240 million for the quarter ended September 2024, missing the Zacks Consensus Estimate of $243. The topline fell 4.3% year-over-year.
Ecolab Inc.’s (ECL - Free Report) adjusted earnings in the third quarter 2024 quarter were $1.83 per share, up from year ago’s $1.54. The figure surpassed the Zacks Consensus Estimate of $1.82.
ECL reported net sales of $3.99 billion for the quarter, missing the Zacks Consensus Estimate $4.02 billion. The company’s top-line increased 1% year-over-year.