NYSE$IFF

International Flavors & Fragra · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

IFF's financial performance improved notably in Q2 2024, driven by volume growth and productivity gains.

IFF reported a slight decrease in sales but a significant improvement in profitability for Q2 2024. Sales were $2.89 billion, a 1% decrease year-over-year, but comparable currency neutral sales increased by 7%. Adjusted operating EBITDA improved 22% to $588 million, and adjusted EPS excluding amortization was $1.16. The company is raising its full-year sales and adjusted operating EBITDA guidance.

  • Reported net sales decreased by 1% to $2.89 billion, but comparable currency neutral sales increased by 7%.
  • Adjusted operating EBITDA increased by 22% to $588 million, driven by volume growth and productivity gains.
  • Adjusted EPS excluding amortization was $1.16 per diluted share.
  • The company is raising its full-year sales and adjusted operating EBITDA guidance.

Headline financials

Total Revenue

$2.89B

Previous: $2.93B-1.4%
EPS

$0.66

Previous: $0.86-23.3%
Adjusted Operating EBITDA

$588M

No prior period
Operating EBITDA Margin

20.4%

Previous: 17.4%+17.2%
Capital Expenditures

-$200M

Previous: -$290M+31.0%
Free Cash Flow

-$30M

Previous: -$263M+88.6%
Net Income

$170M

Previous: $27M+529.6%
Operating Income

$191M

Previous: $145M+31.7%
Gross Profit

$1.07B

Previous: $933M+14.5%
Cash & Equivalents

$671M

Previous: $638M+5.2%
Total Assets

$29.5B

Previous: $34.5B-14.3%
R&D Expense

$173M

No prior period
Stock-Based Comp

$25M

Previous: $20M+25.0%

Revenue & EPS history

IFF · Revenue · Quarterly

$2.89B

Q2 2024-1.4%vs Q2 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

IFF · $615M total across 1 segment · Q3 2023

  • Scent
    $615M+4.1%

Forward guidance

The Company is increasing its expectations for the full year 2024 and now expects full year 2024 sales to be in the range of $11.1 billion to $11.3 billion versus $10.8 billion to $11.1 billion and adjusted operating EBITDA to be in the range of $2.1 billion to $2.17 billion versus $1.9 billion to $2.1 billion.

Tailwinds

  • Full year 2024 sales are expected to be in the range of $11.1 billion to $11.3 billion.
  • Adjusted operating EBITDA is expected to be in the range of $2.1 billion to $2.17 billion.
  • Volume is expected to be 3% to 5%.
  • Improvements across the majority of the portfolio.
  • Pricing is still expected to increase approximately 1%.

Headwinds

  • Foreign exchange will have a 3% to 4% adverse impact to sales growth.
  • Certain items that impact net income and other reconciling metrics are out of the Company's control.
  • These items cannot be reasonably predicted at this time.
  • Acquisition, divestiture and integration related costs.
  • Gains (losses) on business disposals and regulatory costs.

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 2024

Historical avgQ2 2024

-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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