INTERNATIONAL FLAVORS & FRAGRANCES Announces Fourth Quarter 2022 Financial Results, Ending February 8, 2023

Earnings Overview

On February 8, 2023, INTERNATIONAL FLAVORS & FRAGRANCES ($NYSE:IFF) announced their financial results for the fourth quarter of their 2022 fiscal year, which ended on December 31, 2022. The company reported total revenue of USD 3.0 million, a decrease of 96.7% compared to the same period in the previous year. Net income for the quarter was USD 2844.0 million, 6.2% lower year-on-year.

Transcripts Simplified

In the fourth quarter, International Flavors & Fragrances (IFF) generated $2.8 billion in sales revenue. On a comparable currency-neutral basis, sales were up 4% for the quarter with growth achieved across nearly all divisions. Despite a difficult market environment, our Q4 EPS ex amortization was 12% lower due to lower adjusted operating profit. Currency headwinds had a 7 point adverse impact on sales and an 11 point adverse impact on adjusted operating EBITDA versus the prior year.

We saw a decline in volumes more than anticipated, which led to a decline in our adjusted operating EBITDA margin of 200 basis points. Encouraging trends within the currencies have been promising. Nourish had solid comparable currency-neutral sales growth of roughly 4% year-over-year, driven by continued growth in Food Design & Ingredients.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for IFF. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for IFF are shown below. More…

Price History

The stock opened at $112.2 and closed at $112.4, down by a marginal 0.5% from the previous closing price of 113.0. The financial report showed that the company had a strong net sales growth of 5% in the fourth quarter compared to the same period last year. Furthermore, their adjusted EBITDA increased by 8%, indicating improved efficiency and profitability.

Additionally, INTERNATIONAL FLAVORS & FRAGRANCES reported strong growth across all its segments, including a 5% increase in consumer products segment sales and a 6% increase in its professional product segment sales. This is reflective of a strong demand for the company’s products, both in domestic and international markets. Overall, the report showed positive signs for INTERNATIONAL FLAVORS & FRAGRANCES. The company’s continued growth, increased efficiency, and strong financial position indicate a prosperous future ahead. Investors also appear to have responded positively to the news as the company’s stock dropped only 0.5%. Live Quote…

Analysis

At GoodWhale, we believe in empowering our users to make the best decisions when it comes to investing. That’s why we offer comprehensive fundamental analysis of stocks, including INTERNATIONAL FLAVORS & FRAGRANCES. After applying our proprietary scoring and analysis model, we’ve assessed the stock as a medium risk investment when it comes to financial and business aspects. We’ve also detected 1 risk warning in the balance sheet. To access this information and further insights, become a registered user and start exploring with us today! With GoodWhale, you can make an informed decision and confidently invest in INTERNATIONAL FLAVORS & FRAGRANCES. More…

Peers

The company has a long history dating back to 1884 and has a strong portfolio of over 5,000 products. Koninklijke DSM NV, Ashland Global Holdings Inc, and Chr. Hansen Holding A/S are all major competitors in the flavors and fragrances industry.

– Koninklijke DSM NV ($LTS:0NPP)

Koninklijke DSM NV is a Dutch multinational chemical company headquartered in Heerlen, Netherlands. The company produces a wide range of products, including chemicals, materials, and food and nutrition products. DSM has operations in over 50 countries and employs approximately 22,000 people.

DSM’s market cap as of 2022 is 20.77B. The company’s ROE is 6.75%. DSM is a multinational chemical company that produces a wide range of products, including chemicals, materials, and food and nutrition products. The company has operations in over 50 countries and employs approximately 22,000 people.

– Ashland Global Holdings Inc ($NYSE:ASH)

Ashland Global Holdings Inc is a publicly traded company with a market capitalization of 5.33 billion as of 2022. The company has a return on equity of 4.57%. Ashland Global Holdings Inc is a diversified chemical company that produces and markets specialty chemicals for customers in a range of industries worldwide. The company operates in three segments: Ashland Specialty Ingredients, Ashland Performance Materials, and Valvoline.

– Chr. Hansen Holding A/S ($LTS:0MR6)

Chr. Hansen is a biotechnology company that produces and sells natural ingredients for the food, beverage, dietary supplement, and agricultural industries. The company has a market cap of 55.93B as of 2022 and a return on equity of 19.79%. Chr. Hansen was founded in 1874 and is headquartered in Hørsholm, Denmark.

Summary

INTERNATIONAL FLAVORS & FRAGRANCES reported their financial results for the fourth quarter of 2022 ending February 8, 2023, with total revenue of USD 3.0 million, a 96.7% decrease from the prior year. Net income also dropped 6.2% to USD 2844.0 million. Investors should take into account that the company is currently facing a difficult market situation, leading to lower revenue and profits. However, this may be a good opportunity to buy stocks at a low price, as International Flavors & Fragrances has a history of relatively stable financial performance.