IFF Reports Net Sales of $3.03 Billion in Q1 2023

International Flavors and Fragrances, Inc. has reported financial results for the first quarter ended March 31, 2023, ahead of expectations amidst a challenging operating environment, company official said.
 
Net sales for the first quarter were $3.03 billion, flat versus the prior-year period. On a comparable basis, currency neutral sales increased 1% versus the prior-year period, led by Scent and Pharma Solutions.
 
“Our team successfully navigated soft end-market demand and customer inventory destocking as they executed on our priorities to deliver our financial commitments,” said IFF CEO Frank Clyburn. “As we look ahead to the balance of the year, we continue to believe our volume performance will improve, yet acknowledge that market conditions remain uncertain. As such, we remain steadfast in our focus to control what we can control as we solidify profitability, maximize cash flow and drive portfolio optimization to generate strong returns for our shareholders.”
 
Income before taxes on a reported basis for the first quarter was $14 million. Adjusted operating EBITDA for the first quarter was $503 million. On a comparable basis, currency neutral adjusted operating EBITDA declined 19% versus the prior-year period, as pricing and productivity gains were more than offset by lower volumes and unfavorable manufacturing absorption related to the company's inventory reduction program.

Scent Segment

On a reported basis, first quarter sales were $608 million. On a comparable basis, currency neutral sales increased 8% led by double-digit growth in fine fragrance and consumer fragrance.
 
Scent adjusted operating EBITDA was $105 million and adjusted operating EBITDA margin was 17.3% in the first quarter. On a comparable basis, currency neutral adjusted operating EBITDA increased 1% led by volume growth, pricing and productivity gains.