NYSE$IFF

International Flavors & Fragra · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

IFF achieved strong double-digit sales growth and raised its full-year 2021 sales outlook.

IFF reported a strong second quarter performance with double-digit sales growth and a solid improvement in overall profitability. The company's synergy realization is on track, and the overall business performance underscores the strength and diversity of its portfolio.

  • Reported net sales for the second quarter were $3.09 billion, an increase of 158% compared to the prior year period.
  • Adjusted operating EBITDA for the second quarter was $679 million, an increase of 184% from $239 million in 2020.
  • Reported earnings per share (EPS) for the second quarter was $0.11. Adjusted EPS excluding amortization was $1.50 per diluted share.
  • Cash flow from operations for the second quarter was strong, increasing 235% versus year-ago period, to $698 million, and free cash flow totaled $533 million.

Headline financials

Total Revenue

$3.09B

Previous: $1.2B+157.7%
EPS (adj)

$1.50

Previous: $1.36+10.3%
Operating EBITDA Margin

22.0%

No prior period
Capital Expenditures

-$165M

Previous: -$80M-106.2%
Free Cash Flow

-$137M

Previous: $6.17M-2320.1%
Net Income

$28M

Previous: $86.2M-67.5%
Operating Income

$110M

Previous: $119M-7.8%
Gross Profit

$910M

Previous: $482M+88.9%
Cash & Equivalents

$935M

Previous: $497M+88.0%
Total Assets

$40.9B

Previous: $13B+214.6%
Stock-Based Comp

$16M

Previous: $9.98M+60.3%

Revenue & EPS history

IFF · Revenue · Quarterly

$3.09B

Q2 2021+157.7%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

IFF · $550M total across 1 segment · Q2 2021

  • Scent
    $550M+22.1%

Forward guidance

The Company updates 2021 financial guidance on a combined basis and now expects to deliver approximately 7% growth on a combined company basis.

Tailwinds

  • Increased sales expectation for the full year, and now expect to deliver approximately 7% growth on a combined company basis.
  • Successfully increasing prices over time.
  • Driving expense reductions to support long-term profitability.
  • Investing in incremental capacity.
  • Strategically increasing inventory levels in high value businesses to ensure strong top-line momentum while improving returns moving forward.

Headwinds

  • Some short-term pressure in 2021.
  • Margin in the second quarter was adversely impacted by higher raw material and logistics costs.
  • Higher energy costs.
  • Lower manufacturing utilization as a result of weather-related raw material shortages.
  • Inflationary environment

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 Q2 2021

Historical avgQ2 2021

-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%

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