IFF Q4 2012 net income soars 179%

Flavours and fragrances manufacturer International Flavors & Fragrances (IFF) has reported a 179% rise in net income to $68.11m for the fourth quarter ended 31 December 2012, up from $24.3m during the same quarter in 2011.

The firm posted a revenue of $681m, an increase of 6% for the current quarter from $644m in the corresponding quarter of the previous year.

IFF’s operating profit for the fourth quarter increased to $99.2m, compared to $47.8m in the same period of 2011.

IFF chairman and chief executive officer Doug Tough said the firm for the full year 2012 delivered local currency sales growth of 4%, marking the third consecutive year of top-line growth in line with long-term growth targets.

"We made targeted investments to expand our footprint in the growing markets of Greater Asia, which included opening a new manufacturing facility in Singapore and a creative center in India, continuing construction on our facility in China, and initiating investments behind our recently-announced capacity expansion project in Turkey," Tough added.

"We announced earlier this week that we are have made further progress with our biotechnology partner, Evolva, on creating an alternative route for vanillin, which we believe will provide us with a sustainable source for this key flavoring ingredient and give us a strong competitive advantage."

IFF’s fragrances business revenue increased by 10% to $354m, up from $322m in the previous year’s quarter.

The firm said fragrances segment profit totaled $53m in the fourth quarter of 2012 compared with $37m in the fourth quarter of 2011, or an increase of 44%.

Flavours business revenue rose by 1% in the fourth quarter of 2012 to $326m, compared to $323m in the fourth quarter of 2011.

International Flavors & Fragrances is a US-based creator of flavours and fragrances for consumer products, whose portfolio includes fine fragrances and beauty care, detergents and household goods, as well as beverages, sweet goods and food product segments.