IFF Q3 2012 revenue dips 1%

International Flavors & Fragrances Inc has announced that reported revenue in the third quarter of 2012 totalled $709.0m, a 1% decline from $713.8m in the same period of 2011. Excluding the impact of foreign currency, local sales increased 5% and on a like for like basis local currency sales increased 7%. Reported net income in the quarter – which includes $72.4m of tax expenses related to the company’s Spanish tax settlement – was $16.4m, or $0.20 per diluted share.

Local currency sales for IFF’s flavours business grew 6% to $340.7m, while the fragrance unit grew 5% in local currency to $368.3m. Within fragrance, Fine and Beauty Care enjoyed 10% growth and Functional Fragrance sales increased by 8%. Fragrance Ingredients sales, however, declined 12% in local currency due to continued volume declines in commodity products.

“By focusing on the execution of our strategic priorities we achieved local currency growth of 7% on a like for like basis, which was the highest growth we have achieved since the first quarter of 2011,” said IFF chairman and ceo Doug Tough. “We saw strong momentum in every region and end-use product category, with the exception of Fragrance Ingredients.”

Commenting on the current quarter, Tough continued: “IFF’s operations were impacted by Hurricane Sandy, resulting in short term disruptions in power, manufacturing and information technology systems. Most of these disruptions have been resolved due to the rapid response of our employees in implementing our disaster recovery plan. As a result, orders are being processed and shipped from all of our sites, and all our critical business systems are operational. We are currently assessing the costs and other impacts resulting from the hurricane and we do not expect them to have a material financial impact on our fourth quarter results. Excluding these costs and other potential financial impacts, we expect our adjusted EPS to be in-line with consensus for the fourth quarter.”