A month has gone by since the last earnings report for International Flavors (IFF) . Shares have lost about 1.8% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is International Flavors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Sin ...

Financial Performance - In 2024, total sales were $11.484 billion, remaining flat compared to $11.479 billion in 2023, but increased by 3% on a currency neutral basis [240]. - Gross profit in 2024 increased by $443 million, or 12%, to $4.124 billion, representing 35.9% of sales, compared to 32.1% in 2023 [242]. - Total net sales for 2024 were $11.484 billion, a slight increase from $11.479 billion in 2023, with a comparable portfolio excluding divestitures showing a growth of approximately $244 million [246]. - Segment Adjusted Operating EBITDA increased to $2.205 billion in 2024, up from $1.980 billion in 2023, with a total margin of 19.2% compared to 17.2% in the previous year [267]. Sales by Segment - The Nourish segment experienced a 3% decline in sales, while the Health & Biosciences segment saw a 6% increase in reported sales [245]. - Nourish segment sales decreased by $189 million, or 3%, to $5.871 billion in 2024, while currency neutral sales increased by 4% driven by volume increases across all business units [247]. - Health & Biosciences segment sales increased by $131 million, or 6%, to $2.212 billion in 2024, with an 8% increase on a currency neutral basis due to volume and price increases [248]. - Scent segment sales rose by $47 million, or 2%, to $2.440 billion in 2024, with a 7% increase on a currency neutral basis driven by price and volume increases [249]. - Pharma Solutions segment sales increased by $16 million, or 2%, to $961 million in 2024, maintaining a 2% increase on a currency neutral basis [251]. Expenses - Research and development (R&D) expenses increased by 6% to $671 million in 2024, representing 5.8% of sales [244]. - Selling and Administrative (S&A) expenses rose by $208 million to $1.995 billion, representing 17.4% of sales in 2024, up from 15.6% in 2023 [254]. - Cost of sales decreased by $438 million to $7.360 billion, representing 64.1% of sales in 2024, down from 67.9% in 2023 [252]. Impairment Charges - The company recorded an impairment charge of $64 million for the Pharma Solutions segment in 2024, significantly lower than the $2.623 billion impairment in the Nourish segment in 2023 [230][231]. - The Company recorded a non-cash goodwill impairment charge of $64 million for the Pharma Solutions disposal group during the quarter ended June 30, 2024 [316]. - A goodwill impairment charge of $2.623 billion was recorded for the Nourish reporting unit for the year ended December 31, 2023 [319]. - The Company anticipates a material impairment charge in the range of $1.0 billion to $1.5 billion in the first quarter of fiscal 2025 due to the restructuring of the Nourish segment into two operating segments: Taste and Food Ingredients [321]. Taxation - The effective tax rate for 2024 was 11.2%, compared to a negative rate of 1.8% in 2023 [244]. - The effective tax rate increased to 11.2% in 2024 from (1.8)% in 2023, primarily due to an increase in pre-tax income and changes in the mix of earnings [262]. Cash Flows - Cash flows from operating activities in 2024 were $1.070 billion, or 9.3% of sales, down from $1.439 billion, or 12.5% of sales in 2023 [276]. - Cash flows from investing activities decreased to $326 million in 2024 from $574 million in 2023, primarily due to lower net proceeds from business divestitures [277]. - Cash flows used in financing activities were $1.606 billion in 2024, a decrease from $1.851 billion in 2023, mainly due to lower dividends paid [279]. - Dividends paid totaled $514 million in 2024, down from $826 million in 2023, with cash dividend declared per share at $1.60 compared to $3.24 in 2023 [280]. Debt and Capital Management - As of December 31, 2024, the net debt to credit adjusted EBITDA ratio was 3.84 to 1.0, below the covenant limit [287]. - Total debt as of December 31, 2024, was approximately $9.005 billion, with net debt at $8.534 billion [290]. - The company had $8.478 billion in senior unsecured notes outstanding, with effective interest rates ranging from 1.22% to 5.12% [291]. - The company had no outstanding borrowings under its $2 billion Revolving Credit Facility as of December 31, 2024, with available capacity of $922 million [286]. - The company anticipates capital spending in 2025 to be approximately 6% of sales [278]. - The company plans to prioritize capital investment in its businesses to support strategic long-term plans while maintaining its investment grade rating [281]. Foreign Currency and Risk Management - The company actively monitors foreign currency exposures and employs various techniques, including hedging activities, to mitigate the impact of exchange rate fluctuations [335]. - As of December 31, 2024, the estimated fair value of foreign currency forward contracts would change by approximately $475 million with a hypothetical 10% change in applicable exchange rates [337]. - The aggregate fair value of cross currency swaps was $90 million as of December 31, 2024, with an estimated change of approximately $143 million based on a hypothetical 10% change in the value of the U.S. dollar against the Euro [338]. - The fair value of EUR fixed rate debt was $813 million as of December 31, 2024, with an estimated change of approximately $90 million based on a hypothetical 10% change in foreign exchange rates [339]. - The fair value of USD fixed rate debt was $6.338 billion as of December 31, 2024, with an estimated change of approximately $634 million based on a hypothetical 10% change in interest rates [339]. - The total amount of outstanding debt subject to interest rate fluctuations was $413 million as of December 31, 2024, with an estimated annual interest expense change of approximately $4 million based on a hypothetical 1% change in interest rates [340]. - The company has established a centralized reporting system to evaluate the effects of changes in interest rates and currency exchange rates [336]. - The company enters into foreign currency forward contracts to manage exchange rate risk related to foreign currency denominated monetary assets and liabilities [337]. - The company does not generally use commodity financial instruments to hedge commodity prices, except for soy and natural gas [341]. - The company utilizes statistical analyses of cash flows and sensitivity analysis as part of its risk management procedures [336].

International Flavors & Fragrances Inc. (NYSE:IFF) Q4 2024 Earnings Call Transcript February 19, 2025 9:00 AM ET Company Participants Michael Bender - Director, Investor Relations Erik Fyrwald - Chief Executive Officer Michael DeVeau - EVP, Chief Financial Officer Conference Call Participants Kristen Owen - Oppenheimer Josh Spector - UBS Nicola Tang - BNP Paribas Emily Fusco - Deutsche Bank Eric Zhang - Citi Lisa Neve - Morgan Stanley Steve Byrne - Bank of America John Roberts - Mizuho Mike Sison - Wells Fa ...

International Flavors & Fragrances Inc. (IFF) reported adjusted earnings of 97 cents per share in fourth-quarter 2024, beating the Zacks Consensus Estimate of 78 cents. The bottom line improved 35% from the year-ago quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Including one-time items, the company reported a loss of 18 cents per share compared with the prior-year quarter’s loss of $10.21.International Flavors’ net sales were $2.77 billion in the December-end quarter, up 2.5 ...

CAUTIONARY STATEMENT Fourth Quarter & Full Year 2024 Earnings Conference Call February 19, 2025 Statements in this presentation release, which are not historical facts or information, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current assumptions, estimates and expectations including those concerning expected cash flow and availability of capital resources to fund our operations and me ...

International Flavors (IFF) reported $2.77 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 2.5%. EPS of $0.97 for the same period compares to $0.72 a year ago.The reported revenue represents a surprise of +3.94% over the Zacks Consensus Estimate of $2.67 billion. With the consensus EPS estimate being $0.78, the EPS surprise was +24.36%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...

International Flavors (IFF) came out with quarterly earnings of $0.97 per share, beating the Zacks Consensus Estimate of $0.78 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 24.36%. A quarter ago, it was expected that this ingredients producer for food, cosmetics and consumer products industries would post earnings of $1.06 per share when it actually produced earnings of $1.04, de ...

Financial Performance - Reported net sales for the full year 2024 were $11.48 billion, flat compared to the prior year, with currency neutral sales increasing by 6%[5] - Adjusted operating EBITDA for the full year was $2.21 billion, reflecting a 16% increase on a comparable basis due to strong volume growth and productivity gains[5] - Reported earnings per share (EPS) for the full year was $0.95, while adjusted EPS excluding amortization was $4.31 per diluted share[5] - For the fourth quarter, reported net sales were $2.77 billion, a 3% increase year-over-year, with currency neutral sales up 6%[8] - Adjusted operating EBITDA for the fourth quarter was $471 million, with a comparable increase of 5% driven by volume growth and productivity gains[10] - Net income for the year ended December 31, 2024, was $247 million, a significant improvement from a net loss of $2,563 million in 2023[42] - Reported (GAAP) Net Income for 2024 was $278 million, a recovery from a net loss of $2,518 million in 2023[68] - Adjusted (Non-GAAP) Net Income for the year ended December 31, 2024, was $646 million, up from $328 million in 2023, representing a growth of 96.34%[70] Segment Performance - The Nourish segment reported a 4% increase in comparable currency neutral sales, while Health & Biosciences and Scent segments saw increases of 6% and 7% respectively[9] - The Nourish segment reported net sales of $5,871 million in 2024, down from $6,060 million in 2023, a decrease of about 3.1%[45] - Health & Biosciences segment sales increased by 6.3% to $2,212 million in 2024, compared to $2,081 million in 2023[84] - Scent segment sales grew to $2,440 million in 2024, up 7.1% from $2,277 million in 2023[84] - Pharma Solutions segment sales reached $961 million in 2024, a slight increase from $945 million in 2023[84] - The company experienced a 12% increase in Pharma Solutions sales, with a remarkable 81% increase in segment adjusted operating EBITDA for Q4 2024[89] Future Projections - Full year 2025 sales are expected to be in the range of $10.6 billion to $10.9 billion, with adjusted operating EBITDA projected between $2 billion and $2.15 billion[12] - The company anticipates comparable currency neutral sales growth of 1% to 4% in 2025, with adjusted operating EBITDA expected to grow 5% to 10% year-over-year[13] - Foreign exchange is expected to have a 4% adverse impact on sales growth and a 6% adverse impact on adjusted operating EBITDA growth in 2025[14] - The Pharma Solutions segment is expected to contribute six months of results in 2025 following its divestiture, which is assumed to close on June 30, 2025[12] Expenses and Cash Flow - Research and development expenses increased by 8% to $170 million in Q4 2024 from $157 million in Q4 2023[38] - Selling and administrative expenses rose by 16% to $517 million in Q4 2024, up from $444 million in Q4 2023[38] - Total net cash provided by operating activities decreased to $1,070 million in 2024 from $1,439 million in 2023, reflecting a decline of approximately 25.6%[42] - The company incurred approximately $1,995 million in Selling and Administrative Expenses for 2024, compared to $1,787 million in 2023, reflecting an increase of 11.65%[65] - Net cash used in financing activities was $1,606 million in 2024, a decrease from $1,851 million in 2023, reflecting a reduction of approximately 13.2%[42] Balance Sheet - Total current assets increased to $7,993 million in 2024 from $6,293 million in 2023[40] - Total liabilities decreased to $14,256 million in 2024 from $15,578 million in 2023[40] - The company’s total assets were $28,667 million in 2024, down from $30,978 million in 2023[40] - Total debt as of December 31, 2024, was $9,005 million, resulting in net debt of $8,534 million after accounting for $471 million in cash and cash equivalents[80] Other Notable Items - The company reported a net loss of $46 million in Q4 2024, a significant improvement from a net loss of $2,609 million in Q4 2023[38] - The company recognized a settlement loss of $130 million related to the termination of the pension plan in 2024[74] - The company incurred an impairment of goodwill of $64 million in 2024, a significant reduction from $2,623 million in 2023[45] - Business divestiture costs for Q4 2024 were approximately $56 million, compared to $38 million in Q4 2023, marking an increase of 47.37%[60] - For the year ended December 31, 2024, business divestiture and integration costs were approximately $220 million and $5 million, respectively, compared to $108 million and $59 million in 2023[73]

Wall Street analysts expect International Flavors (IFF) to post quarterly earnings of $0.78 per share in its upcoming report, which indicates a year-over-year increase of 8.3%. Revenues are expected to be $2.67 billion, down 1.4% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 2.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a compan ...

International Flavors & Fragrances Inc. (IFF) is scheduled to report fourth-quarter 2024 results on Feb. 18, after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for IFF’s revenues is pegged at $2.67 billion, indicating a 1.37% dip from the year-ago reported figure.The consensus estimate for earnings is pegged at 78 cents per share. The consensus estimate for IFF’s earnings has moved down 2.5% in the past 60 days. The estimate indicates ...