International Flavors & Fragrances(US:IFF)2025-02-18 21:27Financial 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]