NYSE$IFF

International Flavors & Fragra · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

IFF's financial performance for Q2 2022, marked by sales increase and strategic execution.

IFF reported a 7% increase in net sales to $3.31 billion for the second quarter of 2022. Adjusted operating EBITDA increased by 3% to $700 million. The company reaffirms its full-year 2022 financial guidance.

  • Reported net sales increased by 7% to $3.31 billion, with currency neutral sales up by 11%.
  • Adjusted operating EBITDA rose by 3% to $700 million, driven by pricing actions and productivity gains.
  • Reported earnings per share (EPS) was $0.43, and adjusted EPS excluding amortization was $1.54 per diluted share.
  • The company reaffirms full year 2022 financial guidance, expecting sales between $12.6 billion and $13.0 billion.

Headline financials

Total Revenue

$3.31B

Previous: $3.09B+7.1%
EPS (adj)

$1.54

Previous: $1.50+2.7%
Operating EBITDA Margin

21.2%

Previous: 22.0%-3.6%
Capital Expenditures

-$236M

Previous: -$165M-43.0%
Free Cash Flow

-$129M

Previous: -$137M+5.8%
Net Income

$107M

Previous: $28M+282.1%
Operating Income

$213M

Previous: $110M+93.6%
Gross Profit

$1.14B

Previous: $910M+24.8%
Cash & Equivalents

$569M

Previous: $935M-39.1%
Total Assets

$39.3B

Previous: $40.9B-3.8%
Stock-Based Comp

$16M

Previous: $16M+0.0%

Revenue & EPS history

IFF · Revenue · Quarterly

$3.31B

Q2 2022+7.1%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

IFF · $580M total across 1 segment · Q2 2022

  • Scent
    $580M+5.5%

Forward guidance

The Company reaffirms full year 2022 financial guidance. The Company continues to expect 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.

Tailwinds

  • Sales to be approximately $12.6 billion to $13.0 billion
  • Adjusted operating EBITDA of approximately $2.5 billion to $2.6 billion
  • Comparable currency neutral sales growth of approximately 9% to 12%
  • Comparable currency neutral adjusted operating EBITDA growth to be approximately 4% to 8%

Headwinds

  • Foreign exchange will negatively impact sales growth in 2022 by approximately 5 percentage points
  • Foreign exchange will negatively impact adjusted operating EBITDA growth by approximately 6 percentage points

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 2022

Historical avgQ2 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%

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