IFF net income for Q1 decreases

International Flavors & Fragrances (IFF), a New York-based manufacturer of flavours and fragrances for consumer products, has reported a decrease in net income to $81.06m for the first quarter 2012, down from $84.04m during the same period in 2011.
 
IFF has also posted a decrease in consolidated net sales to $710.66m when compared to the figure of $714.22m in the corresponding period of 2011.
 
IFF chairman and chief executive officer Doug Tough said the company continued to execute its strategy and generated results broadly in line with its expectations.
 
"Going forward, we expect our business trends will improve over the course of the year as we continue to capitalize on our strong emerging market presence, healthy research and development pipeline, and profit improvement initiatives," Tough said.
 
The company’s Flavors business division reported 1% increase in operating profit to $80m as volume growth, higher pricing and cost discipline primarily drove the results.
 
IFF said the Flavors business sales increased 3% for the quarter, while local sales grew 6%. The overall growth came from the markets of Africa, Asia and the Middle East.
 
The company said that the markets of North America and Western Europe had shown a more modest growth.

The company’s Fragrances division’s operating profit fell by 18%, or $13m, to $56m.

According to the company, the decline happened due to increase in raw material costs, and volume declines more than offset higher prices and cost control initiatives.