(Reuters) -International Flavors and Fragrances reported an adjusted profit that beat analysts’ expectations for the third quarter, driven by steady demand and a pivot to higher-margin businesses.
Shares of the New York City-based company were up 3% after the bell.
WHY IT’S IMPORTANT
International Flavors & Fragrances has weathered the consumer spending slowdown better than peers such as Germany’s Symrise as steady demand for food, home and personal care ingredients has helped offset inflationary pressures.
CONTEXT
Softer trends in beauty and some food categories have led customers to keep leaner inventories, prompting the supplier to shed non-core businesses and sharpen its focus on flavors, fragrances and health ingredients.
IFF is in the process of selling its soy crush, concentrates and lecithin business to U.S. grain trader Bunge Global .
KEY QUOTES
“In a more challenging environment, we’re doing what we said we would do – maintaining the financial guidance we shared in February and advancing our growth strategy,” CEO Erik Fyrwald said.
“At the same time, we are progressing our portfolio optimization efforts to unlock the full potential of our portfolio.”
BY THE NUMBERS
International Flavors & Fragrances posted an adjusted profit of $1.05 per share for the third quarter, compared with analysts’ average estimate of $1.01 per share, according to data compiled by LSEG.
The company, which provides ingredients and flavor solutions used in food and beverage products, reiterated its annual sales forecast of $10.6 billion to $10.9 billion.
The company’s quarterly net sales fell 8% to $2.69 billion from last year. Analysts were expecting, on average, $2.63 billion.
(Reporting by Anshi Sancheti in Bengaluru; Editing by Tasim Zahid)
