NYSE$IFF

International Flavors & Fragra · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

IFF reported strong first quarter results, driven by broad-based growth and pricing actions offsetting inflationary pressures. Increased sales expectation and sharpened execution rigor to deliver sustainable growth.

IFF reported a strong start to 2022, with net sales of $3.23 billion, a 31% increase compared to the prior year, and adjusted operating EBITDA of $702 million, a 23% increase. The company has increased its sales expectation to include incremental pricing actions to fully recover cost exposure and remains committed to delivering its full-year profit objective.

  • Reported net sales increased by 31% to $3.23 billion, driven by the merger with Nutrition & Biosciences.
  • Comparable currency neutral sales increased by 13%, led by double-digit growth in Nourish, Health & Biosciences, and Pharma Solutions.
  • Adjusted operating EBITDA increased by 23% to $702 million, driven by the merger with N&B.
  • Reported earnings per share (EPS) was $0.96; adjusted EPS excluding amortization was $1.69 per diluted share.

Headline financials

Total Revenue

$3.23B

Previous: $2.47B+30.9%
EPS (adj)

$1.69

Previous: $1.60+5.6%
Operating EBITDA Margin

21.8%

Previous: 23.1%-5.6%
Capital Expenditures

-$132M

Previous: -$93M-41.9%
Free Cash Flow

$112M

Previous: -$135M+183.0%
Net Income

$244M

Previous: -$42M+681.0%
Operating Income

$341M

Previous: $4M+8425.0%
Gross Profit

$1.15B

Previous: $754M+51.9%
Cash & Equivalents

$657M

Previous: $872M-24.7%
Total Assets

$39.7B

Previous: $40.8B-2.6%
Stock-Based Comp

$9M

Previous: $11M-18.2%

Revenue & EPS history

IFF · Revenue · Quarterly

$3.23B

Q1 2022+30.9%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

IFF · $585M total across 1 segment · Q1 2022

  • Scent
    $585M+2.8%

Forward guidance

The Company expects full year 2022 sales to be approximately $12.6 billion to $13.0 billion, with an expected full year 2022 adjusted operating EBITDA of approximately $2.5 billion to $2.6 billion. The Company expects to deliver comparable currency neutral sales growth of approximately 9% to 12% for the full year 2022. The Company continues to expect comparable currency neutral adjusted operating EBITDA growth for 2022 to be approximately 4% to 8%.

Tailwinds

  • Sales expectation increased to $12.6B-$13.0B
  • Comparable currency neutral sales growth of approximately 9%-12%
  • Adjusted operating EBITDA of approximately $2.5B-$2.6B
  • Comparable currency neutral adjusted operating EBITDA growth of approximately 4%-8%
  • Addition of Health Wright Products acquisition

Headwinds

  • Expected Microbial Control divestiture
  • Foreign exchange will negatively impact sales growth by approximately 4 percentage points
  • Foreign exchange will negatively impact adjusted operating EBITDA growth by approximately 5 percentage points
  • Additional inflation throughout the year
  • Microbial Control divestiture anticipated to be complete on July 1, 2022

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.6%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-1.3%

Avg return

30 days after

56%

38 / 68 earnings

Positive

+11.0%

Q1 2026

Best reaction

-19.5%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.0%+10.4%+3.4%
Q4 2025+5.9%+7.5%-9.6%
Q3 2025+4.0%+2.1%+9.3%
Q1 2025-7.0%-3.6%-2.9%
Q4 2024-5.2%-7.9%-10.0%
Q3 2024-11.5%-6.8%-10.1%
Q2 2024-0.4%+1.7%+8.5%
Q1 2024+8.9%+12.2%+13.2%
Q4 2023-5.4%-0.9%+2.6%
Q3 2023-1.5%-1.3%+4.1%
Q2 2023-19.5%-20.2%-11.8%
Q1 2023-6.4%-13.8%-15.8%
Q4 2022-19.1%-0.0%-4.7%
Q3 2022-3.6%+6.0%+14.0%
Q2 2022-5.2%-1.9%-10.7%
Q1 2022+2.7%+8.2%+8.8%
Q4 2021+5.8%+2.1%-8.4%
Q3 2021+6.6%+6.3%+3.2%
Q2 2021+2.2%+5.8%+2.1%
Q1 2021-5.3%-3.6%+0.4%
Q4 2020+6.9%+4.8%+5.4%
Q3 2020+3.6%+3.3%+6.1%
Q2 2020-1.2%-2.9%-3.8%
Q1 2020-0.8%-4.6%-0.7%
Q4 2019-0.9%-1.5%-21.0%
Q3 2019+10.4%+9.1%+15.0%
Q2 2019-17.3%-14.8%-22.2%
Q1 2019-3.5%-2.7%+0.9%
Q4 2018-9.1%-9.5%-14.6%
Q3 2018+1.9%-0.1%-5.3%
Q2 2018+0.1%-1.3%-3.1%
Q1 2018-11.0%-10.2%-11.6%
Q4 2017+0.7%-0.9%-3.0%
Q3 2017+1.1%-1.0%+3.7%
Q2 2017+3.6%+0.4%+4.3%
Q1 2017-7.4%-6.1%-1.0%
Q4 2016+5.2%+3.8%+12.0%
Q3 2016-2.0%-8.0%-3.1%
Q2 2016+1.8%+1.2%+4.0%
Q1 2016+6.5%
Q4 2015-14.0%
Q3 2015+0.4%
Q2 2015-1.9%
Q1 2015-5.5%
Q4 2014+9.3%
Q3 2014-0.7%
Q2 2014-3.8%
Q1 2014+2.2%
Q4 2013+4.1%
Q3 2013+3.8%
Q2 2013+0.5%
Q1 2013+2.0%
Q4 2012+3.4%
Q3 2012-3.0%
Q2 2012+8.0%
Q1 2012-1.8%
Q4 2011-1.0%
Q3 2011-12.2%
Q2 2011+0.9%
Q1 2010+1.8%
Q1 2011+0.9%
Q4 2010+1.8%
Q3 2010+4.9%
Q3 2009+4.9%
Q2 2009+2.1%
Q4 2009+2.1%
Q4 2008+2.1%
Q2 2010+2.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro