"Our second quarter results finished in line with our expectations, with improved trends across several of our key financial metrics," said IFF Chairman and CEO Andreas Fibig. "We continued to advance our strategy as we drove innovation, executed our productivity programs, and benefited from acquisitions. These improvements reflect significant efforts across our entire organization as we implement our long-term strategy and generate strong returns for our shareholders."
On a reported basis, fragrance sales increased 4%, or $14.6 million, to $428.5 million while currency neutral sales improved 5%. This increase was driven by the benefit of acquisitions as well as growth in fine fragrances, fabric care and fragrance ingredients.
Fine fragrances improved 10% on a reported basis and 11% on a currency neutral basis, inclusive of additional sales related to the acquisition of Fragrance Resources. Performance was driven by double-digit growth in Greater Asia, EAME and North America, more than offsetting softness in Latin America.
Consumer fragrances was flat on a reported basis and improved 1% on a currency neutral basis principally driven by the additional sales related to the acquisition of Fragrance Resources and low-single-digit improvements in fabric care and home care.
Fragrance ingredients grew 7% on a reported basis and 9% on a currency neutral basis, led by double-digit growth in EAME and Latin America and double-digit growth in cosmetic active ingredients. Fragrances segment profit decreased 3% on a reported basis and currency neutral basis, as volume growth and the benefits from productivity initiatives were more than offset by unfavorable price to input costs and weaker sales mix.
"Looking forward, we expect second half performance to see improved year-over-year organic sales growth and additional savings related to the productivity program we announced earlier this year," said Fibig. "For the full year, we remain optimistic that we can achieve our previously stated currency neutral guidance."