NYSE$IFF

International Flavors & Fragra · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

IFF's financial performance for the third quarter of 2023, with sales and profit exceeding expectations, volume performance improving sequentially, and strong free cash flow generation achieved through working capital improvement and inventory reduction.

IFF reported a decrease of 8% in reported net sales, totaling $2.82 billion. However, the company's volume performance improved across most businesses, and pricing remained strong. Adjusted operating EBITDA was $506 million, and adjusted EPS excluding amortization was $0.89 per diluted share. The company is on track to achieve its full-year 2023 sales guidance and expects adjusted operating EBITDA to be at the mid to high-end of the previously announced range.

  • Sales and profit exceeded expectations in Q3 2023.
  • Volume performance improved sequentially across the majority of the business.
  • Strong free cash flow generation was driven by working capital improvement and inventory reduction.
  • Full year 2023 adjusted operating EBITDA is expected to be at the mid to high-end of the previously announced guidance range.

Headline financials

Total Revenue

$2.82B

Previous: $3.06B-7.9%
EPS (adj)

$0.89

Previous: $1.36-34.6%
Capital Expenditures

-$390M

Previous: -$344M-13.4%
Free Cash Flow

-$365M

Previous: -$2.54B+85.6%
Net Income

$25M

Previous: -$2.2B+101.1%
Operating Income

$150M

Previous: -$1.99B+107.6%
Gross Profit

$924M

Previous: $1B-7.7%
Cash & Equivalents

$629M

Previous: $538M+16.9%
Total Assets

$33.4B

Previous: $34.5B-3.3%
R&D Expense

$157M

No prior period
Stock-Based Comp

$18M

Previous: $12M+50.0%

Revenue & EPS history

IFF · Revenue · Quarterly

$2.82B

Q3 2023-7.9%vs Q3 2022
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 reconfirmed its full year 2023 sales guidance range of $11.3 billion to $11.6 billion and now expects to be at the mid to high end of its full year 2023 adjusted operating EBITDA guidance range of $1.85 billion to $2.0 billion driven primarily by favorable price to inflation and improved productivity.

Tailwinds

  • Favorable price to inflation
  • Improved productivity

Headwinds

  • Foreign exchange will have approximately 2% adverse impact to sales growth in 2023.
  • Foreign exchange will have approximately a 6% adverse impact to adjusted operating EBITDA growth in 2023.

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 Q3 2023

Historical avgQ3 2023

-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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