05.06.24
Net sales for IFF in the first quarter were $2.90 billion, a decrease of 4% versus the prior-year period per the first quarter 2024 consolidated financial results ended March 31, 2024.
On a comparable basis, currency neutral sales increased 5% versus the prior-year period led by growth in scent. Volume grew mid-single digits and continued to improve sequentially across nearly all businesses.
"We have started the year well, with good results across the majority of our business," said IFF CEO Erik Fyrwald. "In the first quarter, we delivered volume growth and productivity gains, which resulted in solid top-and-bottom-line results on a comparable basis. We are off to a good start yet recognize that it is still early in the year and uncertainty remains.”
On a reported basis, first quarter sales were $645 million. On a comparable basis, currency neutral sales increased 16% led by strong double-digit growth in consumer fragrance and a mid-single digit increase in fine fragrance, with balanced contributions from volume and price.
The company expects full year 2024 results to trend towards the higher-end of its previously announced sales guidance range of $10.8 billion to $11.1 billion and adjusted operating EBITDA guidance range of $1.9 billion to $2.1 billion. The company also said it expects volume to trend towards the higher-end of its previously announced 0% to 3% range, with improvements across the majority of the portfolio. Pricing is now expected to increase approximately 1% versus a decline of approximately 2.5%, principally driven by the impact of foreign exchange rate changes in emerging markets where the company has index pricing to US and/or Euro exchange rates.
CFO to Retire
The company also announced that Glenn Richter, IFF’s chief financial and business transformation officer, will retire Dec. 31, 2024 after a three-year tenure with the company.
A succession process has been initiated to evaluate internal and external candidates to succeed Richter as CFO.
“During his time at IFF, Glenn has driven multiple actions to improve our balance sheet and position the company for financial success,” said Erik Fyrwald, IFF CEO. “We have benefited from his experience and commitment to transformation. Notably, the work he has led on portfolio optimization, strategy development and our shared services agenda have positioned IFF to drive long-term profitable market share growth. The Board and I are grateful for all Glenn has helped IFF accomplish, and we appreciate his ongoing leadership of the finance function and support in identifying his successor and ensuring a smooth transition.”