IFF net income plunges 80% in Q3 2012

Flavours and fragrances manufacturer International Flavors & Fragrances (IFF) has reported a 80% decline in net income to $16.36m for the third quarter ended 30 September 2012, down from $82.24m during the same quarter in 2011.

The firm posted a revenue of $708.95m, a decrease of 1% for the current quarter from $713.77m in the corresponding quarter of the previous year.

IFF’s operating profit for the third quarter increased by 4% to $134.2m, compared to $128.6m in the same period of 2011.

IFF chairman and chief executive officer Doug Tough said the firm by concentrating on the execution of its core priorities achieved local currency growth of 7% on a like-for-like basis, the highest growth achieved since the first quarter of 2011.

"We saw strong momentum in every region and end-use product category, with the exception of Fragrance Ingredients. Fragrance Compounds achieved 9% local currency growth, which was the result of 10% growth in Fine and Beauty Care and 8% growth in Functional Fragrance. Flavors delivered 9% growth on a like-for-like basis, supported by double-digit growth in Beverages and Dairy, and solid growth in Savory and Sweet. These strong growth trends, as well as an improved mix of business and ongoing manufacturing efficiencies, resulted in adjusted earnings growth of 8%," said Tough.

Fragrances business unit revenue declined by 1% to $368.3m, down from $373.2m in the previous year’s quarter .

Excluding the impact of foreign currency, local currency, sales increased by 5%, as revenue from Fine and Beauty Care and Functional Fragrance divisions reported 10% growth.

Flavours business profit rose by 7% in the third quarter of 2012 to $76.1m, compared to $71.2m in the third 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.