IFF profit rises by 16% in Q2 2012

Flavours and fragrances manufacturer International Flavors & Fragrances (IFF) has reported a 16% rise in profit to $88.6m for the second quarter ended 30 June 2012, up from $76.2 m during the same quarter in 2011.

The firm posted a revenue of $721.3m, an increase of 1% for the current quarter from $715.6m in the corresponding quarter of the previous year.

IFF’s operating profit for the second quarter increased by12% to $132.3m, compared to $118m in the same period of 2011.

IFF chairman and chief executive officer Doug Tough said the firm has reported firm growth and in spite of challenges in form of economic uncertainty in Western Europe and volume declines in Fragrance Ingredients.

"Our performance against this backdrop underscores the strength and diversity of our portfolio and geographic reach, as well as our ability to drive manufacturing efficiencies and control operating costs. As expected, increases in raw material costs are beginning to moderate and price realization has improved, resulting in margin expansion and operating profit growth," said Tough.

Fragrances business unit revenue declined by 3% to $359.9m, down from $370.2m in the previous quarter of 2011.

Excluding the impact of foreign currency, local currency, sales were flat, as revenue increase in Fine and Beauty Care and Functional Fragrance divisions was offset by volume declines in Fragrance Ingredients.

Flavors business unit revenue rose by 5% to $361.4m, compared to $345.4m in the second 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.