International Flavors & Fragrances(US:IFF)2024-11-05 21:30Financial Performance - Q3 2024 reported net sales were $2.93 billion, a 4% increase YoY, with currency-neutral sales up 9% YoY[3] - Q3 2024 adjusted operating EBITDA was $568 million, a 16% increase YoY on a comparable basis[3] - Q3 2024 adjusted EPS excluding amortization was $1.04, a 17% increase YoY[3] - Q3 2024 cash flows from operations were $702 million, with free cash flow of $399 million[4] - Net sales for Q3 2024 increased by 4% to $2.925 billion compared to $2.820 billion in Q3 2023[31] - Gross profit for Q3 2024 rose by 14% to $1.052 billion from $924 million in Q3 2023[31] - Operating profit for Q3 2024 surged by 66% to $249 million from $150 million in Q3 2023[31] - Net income attributable to IFF shareholders for Q3 2024 jumped by 136% to $59 million from $25 million in Q3 2023[31] - Free cash flow for the nine months ended September 30, 2024, was $702 million, compared to $795 million in the same period in 2023[35] - Net sales for the third quarter of 2024 were $2.925 billion, compared to $2.820 billion in the same period of 2023, reflecting a 3.7% increase[37] - Consolidated adjusted operating EBITDA margin improved to 19.4% in Q3 2024, up from 17.9% in Q3 2023[37] - Adjusted (Non-GAAP) net income for Q3 2024 was $158 million, compared to $96 million in Q3 2023, a 64.6% increase[43] - Adjusted (Non-GAAP) EPS for Q3 2024 was $0.62, up from $0.38 in Q3 2023[43] - Reported (GAAP) gross profit for Q3 2024 was $1.052 billion, unchanged from the adjusted (Non-GAAP) figure[39] - Year-to-date reported (GAAP) gross profit for 2024 was $3.144 billion, compared to $2.821 billion in 2023[50] - Adjusted (Non-GAAP) net income excluding amortization for Q3 2024 was $268 million, compared to $227 million in Q3 2023[44] - Net income attributable to IFF for Q3 2024 was $289 million, with a diluted EPS of $1.13[54] - Adjusted (Non-GAAP) net income for Q3 2024 was $503 million, with a diluted EPS of $1.96[54] - Adjusted (Non-GAAP) net income excluding amortization for Q3 2024 was $855 million, with a diluted EPS of $3.34[55] - Total net sales for Q3 2024 were $2.925 billion, compared to $2.785 billion in Q3 2023[65] - Segment adjusted operating EBITDA for Q3 2024 was $568 million, up from $490 million in Q3 2023[65] - Q3 Consolidated sales grew by 4% reported, with a 12% increase in Adjusted Operating EBITDA and a 1.5% margin improvement[71] - YTD Consolidated sales decreased by 1% reported, but Adjusted Operating EBITDA increased by 14% with a 2.6% margin improvement[76] Segment Performance - Nourish segment reported Q3 sales of $1.49 billion, with currency-neutral sales up 7% YoY[6] - Health & Biosciences segment reported Q3 sales of $570 million, with currency-neutral sales up 12% YoY[7] - Scent segment reported Q3 sales of $613 million, with currency-neutral sales up 10% YoY[8] - Pharma Solutions segment reported Q3 sales of $256 million, with currency-neutral sales up 8% YoY[8] - Nourish segment sales increased to $1.486 billion in Q3 2024, up 2.6% from $1.449 billion in Q3 2023[37] - Health & Biosciences segment sales grew by 10.0% to $570 million in Q3 2024, compared to $518 million in Q3 2023[37] - Nourish segment sales for Q3 2024 were $1.486 billion, with a segment adjusted operating EBITDA margin of 13.9%[65] - Scent segment sales for Q3 2024 were $613 million, with a segment adjusted operating EBITDA margin of 20.7%[65] - Pharma Solutions segment sales for Q3 2024 were $256 million, with a segment adjusted operating EBITDA margin of 24.2%[65] - Q3 Nourish segment sales increased by 3% reported, with a 16% increase in Segment Adjusted Operating EBITDA and a 1.6% margin improvement[67] - Q3 Scent segment sales remained flat (0% reported), but Segment Adjusted Operating EBITDA decreased by 3% with a 0.6% margin decline[68] - Q3 Pharma Solutions segment sales grew by 8% reported, with a significant 32% increase in Segment Adjusted Operating EBITDA and a 4.5% margin improvement[69] - Q3 Health & Biosciences segment sales increased by 10% reported, with a 15% rise in Segment Adjusted Operating EBITDA and a 1.4% margin improvement[70] - YTD Nourish segment sales decreased by 4% reported, but Segment Adjusted Operating EBITDA increased by 15% with a 2.5% margin improvement[72] - YTD Scent segment sales grew by 3% reported, with a 19% increase in Segment Adjusted Operating EBITDA and a 3.2% margin improvement[73] - YTD Pharma Solutions segment sales decreased by 1% reported, with a 6% decline in Segment Adjusted Operating EBITDA and a 1.2% margin decrease[74] - YTD Health & Biosciences segment sales increased by 7% reported, with a 17% rise in Segment Adjusted Operating EBITDA and a 2.6% margin improvement[75] Financial Guidance - Full-year 2024 sales guidance increased to $11.3-$11.4 billion, with adjusted operating EBITDA expected at the high end of $2.1-$2.17 billion[9] - Volume growth for 2024 is expected to be 5-6%, up from the previous guidance of 3-5%[9] Debt and Leverage - Net debt to credit adjusted EBITDA is used as a leverage ratio in the company's credit agreements[26] - Total debt as of September 30, 2024, was $9.127 billion, with net debt of $8.558 billion after adjusting for cash and cash equivalents[62] - Credit adjusted EBITDA for the twelve months ended September 30, 2024, was $2.201 billion[61] Non-GAAP Adjustments - Adjusted operating EBITDA excludes depreciation, amortization, interest expense, and certain non-recurring items[24] - Currency neutral metrics are used to eliminate the effects of translating non-U.S. currencies to U.S. dollars[23] - Business divestiture costs for Q3 2024 were approximately $55 million, compared to $29 million in Q3 2023[47] Assets and Cash Position - The company's total assets as of September 30, 2024, were $29.928 billion, down from $30.978 billion at the end of 2023[33] - Cash, cash equivalents, and restricted cash at the end of Q3 2024 were $569 million, down from $662 million at the end of Q3 2023[35]