International Flavors & Fragrances Inc. (NYSE: IFF) reported
financial results for the fourth quarter and full year ended
December 31, 2023.
Fourth Quarter 2023 Consolidated Summary:
Reported (GAAP)
Adjusted
(Non-GAAP)1
Sales
Loss Before Taxes
EPS
Operating EBITDA
Operating EBITDA
Margin
EPS ex Amortization
$2.7 B
$(2.6) B
$(10.21)
$461 M
17.1%
$0.72
Full Year 2023 Consolidated Summary:
Reported (GAAP)
Adjusted
(Non-GAAP)1
Sales
Loss Before Taxes
EPS
Operating EBITDA
Operating EBITDA
Margin
EPS ex Amortization
$11.5 B
$(2.5) B
$(10.05)
$2.0 B
17.2%
$3.34
Management Commentary
"I am thrilled to join IFF at such an important and dynamic time
for the company and our industry," said IFF CEO Erik Fyrwald. "In
the fourth quarter, IFF delivered solid results, including a
sequential improvement in volume and double-digit adjusted
operating EBITDA growth on a comparable currency neutral basis. In
line with our commitment to strengthen our capital structure, we
have updated our dividend policy to enable faster deleveraging and
provide improved financial flexibility. As we look ahead, we
recognize that the operating environment remains uncertain, yet we
are cautiously optimistic that we can deliver improved financial
results for our shareholders in 2024."
Fourth Quarter 2023 Consolidated Financial
Results
- Reported net sales for the fourth quarter were $2.70 billion, a
decrease of 5% compared to the prior year period. On a comparable
basis2, currency neutral sales1 increased 1% versus the prior year
period, led by growth in Scent and Health & Biosciences. Volume
performance continued to improve sequentially across nearly all
businesses and pricing remained solid.
- Loss before taxes on a reported basis for the fourth quarter
was $2.64 billion, largely driven by a non-cash goodwill impairment
charge of $2.6 billion. Adjusted operating EBITDA1 for the fourth
quarter was $461 million. On a comparable basis2, currency neutral
adjusted operating EBITDA1 increased 17% led by favorable net
pricing and productivity gains.
- Reported earnings (loss) per share (EPS) for the fourth quarter
was $(10.21). Adjusted EPS excluding amortization1 was $0.72 per
diluted share.
Fourth Quarter 2023 Segment Summary: Growth vs. Prior
Year
Reported (GAAP)
Adjusted (Non-GAAP)1
Comparable Currency Neutral
(Non-GAAP)1 2
Comparable Currency Neutral
Adjusted (Non-GAAP)1 2
Sales
Operating EBITDA
Sales
Operating EBITDA
Nourish
(12)%
(15)%
(3)%
3%
Health & Biosciences
5%
34%
5%
35%
Scent
6%
14%
11%
34%
Pharma Solutions
(8)%
(13)%
(10)%
(13)%
Nourish Segment
- On a reported basis, sales were $1.39 billion. On a comparable
basis2, currency neutral sales1 decreased 3%, as strong growth in
Flavors was primarily offset by softness in Functional Ingredients.
Functional Ingredients improved sequentially, yet declined low
double-digits against the year ago period.
- Nourish adjusted operating EBITDA1 was $165 million and
adjusted operating EBITDA margin1 was 11.8% in the fourth quarter.
On a comparable basis2, currency neutral adjusted operating EBITDA1
grew 3% led by price increases and productivity gains.
Health & Biosciences Segment
- On a reported basis, sales were $528 million. On a comparable
basis2, currency neutral sales1 increased 5% with growth in nearly
all businesses led by a double-digit performance in Health.
- Health & Biosciences adjusted operating EBITDA1 was $162
million and adjusted operating EBITDA margin1 was 30.7% in the
fourth quarter. On a comparable basis2, currency neutral adjusted
operating EBITDA1 grew 35% led by volume growth, price increases
and productivity gains.
Scent Segment
- On a reported basis, sales were $578 million. On a comparable
basis2, currency neutral sales1 improved 11% led by double-digit
growth in Consumer Fragrance and a mid-single digit increase in
Fine Fragrance.
- Scent adjusted operating EBITDA1 was $108 million and adjusted
operating EBITDA margin1 was 18.7% in the fourth quarter. On a
comparable basis2, currency neutral adjusted operating EBITDA1 grew
34% led by volume growth, price increases and productivity
gains.
Pharma Solutions Segment
- On a reported basis, sales were $203 million. On a comparable
basis2, currency neutral sales1 decreased 10% primarily due to a
strong mid-teen year ago comparison and temporary customer
destocking.
- Pharma Solutions adjusted operating EBITDA1 was $26 million and
adjusted operating EBITDA margin1 was 12.8% in the fourth quarter.
On a comparable basis2, currency neutral adjusted operating EBITDA1
declined 13% as pricing and productivity gains were more than
offset by lower volumes.
Full Year 2023 Consolidated Financial Results
- Reported net sales for the full year were $11.48 billion, a
decrease of 8% compared to the prior year period. On a comparable
basis2, currency neutral sales1 decreased 1%, as strong growth in
Scent and resiliency in Health & Biosciences was offset by
softness in Nourish and Pharma Solutions.
- Loss before taxes on a reported basis for the full year was
$2.52 billion, largely driven by a non-cash goodwill impairment
charge of $2.6 billion. Adjusted operating EBITDA1 for the full
year was $1.98 billion. On a comparable basis2, currency neutral
adjusted operating EBITDA1 decreased 10%, as strong pricing and
productivity gains were more than offset primarily by lower
volumes, including unfavorable manufacturing absorption related to
the Company's inventory reduction program.
- Reported earnings (loss) per share (EPS) for the full year was
$(10.05). Adjusted EPS excluding amortization1 was $3.34 per
diluted share.
- Cash flow from operations for the full year was $1.44 billion,
and free cash flow1 defined as cash flow from operations less
capital expenditures totaled $936 million. Total debt to trailing
twelve months net loss at the end of the fourth quarter was (3.9)x.
Net debt to credit-adjusted EBITDA1 at the end of the fourth
quarter was 4.5x.
Full Year 2023 Segment Summary: Growth vs. Prior Year
Reported (GAAP)
Adjusted (Non-GAAP)1
Comparable Currency Neutral
(Non-GAAP)1 2
Comparable Currency Neutral
Adjusted (Non-GAAP)1 2
Sales
Operating EBITDA
Sales
Operating EBITDA
Nourish
(11)%
(38)%
(5)%
(27)%
Health & Biosciences
(11)%
(7)%
0%
2%
Scent
4%
9%
8%
22%
Pharma Solutions
(3)%
(10)%
(3)%
(10)%
Nourish Segment
- On a reported basis, sales were $6.06 billion. On a comparable
basis2, currency neutral sales1 decreased 5% as growth in Flavors
and Food Design was offset by volume pressures in Functional
Ingredients.
- Nourish adjusted operating EBITDA1 was $732 million and
adjusted operating EBITDA margin1 was 12.1% for the full year. On a
comparable basis2, currency neutral adjusted operating EBITDA1
declined 27% as price increases and productivity gains were more
than offset by lower volumes, unfavorable manufacturing absorption
related to the Company's inventory reduction program and a
write-down of inventory related to Locust Bean Kernel (LBK).
Health & Biosciences Segment
- On a reported basis, sales were $2.08 billion. On a comparable
basis2, currency neutral sales1 was flat led by growth in Cultures
& Food Enzymes, Home & Personal Care and Grain Processing
offset by softness in Health and Animal Nutrition.
- Health & Biosciences adjusted operating EBITDA1 was $588
million and adjusted operating EBITDA margin1 was 28.3% for the
full year. On a comparable basis2, currency neutral adjusted
operating EBITDA1 grew 2% led by price increases and productivity
gains.
Scent Segment
- On a reported basis, sales were $2.39 billion. On a comparable
basis2, currency neutral sales1 improved 8% led by double-digit
growth in both Fine Fragrance and Consumer Fragrance.
- Scent adjusted operating EBITDA1 was $461 million and adjusted
operating EBITDA margin1 was 19.3% for the full year. On a
comparable basis2, currency neutral adjusted operating EBITDA1 grew
22% led by volume growth, price increases and productivity
gains.
Pharma Solutions Segment
- On a reported basis, sales were $945 million. On a comparable
basis2, currency neutral sales1 decreased 3% as resiliency in Core
Pharma was offset by softness in Industrial.
- Pharma Solutions adjusted operating EBITDA1 was $199 million
and adjusted operating EBITDA margin1 was 21.1% for the full year.
On a comparable basis2, currency neutral adjusted operating EBITDA1
declined 10% as price increases and productivity gains were more
than offset primarily by lower volumes.
2024 Financial Guidance
Full year 2024 sales are expected to be in the range of $10.8
billion to $11.1 billion and full year 2024 adjusted operating
EBITDA to be in the range of $1.9 billion to $2.1 billion. In light
of the continued macroeconomic uncertainty, the Company expects
volume to be 0% to 3%, with improved trends across the majority of
the portfolio. Pricing is expected to decline approximately 2.5%,
principally driven by reductions in Functional Ingredients and
Fragrance Ingredients, given lower input costs and competitive
dynamics. Comparable currency neutral adjusted operating EBITDA is
expected to grow at a faster rate than sales, growing 3% to 11%
driven by improving volumes and productivity gains.
Based on current market foreign exchange rates, the Company
expects that foreign exchange will have a 0% to 1% adverse impact
to sales growth and an approximately 2% to 3% adverse impact to
adjusted operating EBITDA growth in 2024.
The Company cannot reconcile its expected adjusted operating
EBITDA without unreasonable effort because certain items that
impact net income and other reconciling metrics are out of the
Company's control and/or cannot be reasonably predicted at this
time. These items include but are not limited to acquisition,
divestiture and integration related costs, gains (losses) on
business disposals, and regulatory costs.
Dividend Policy Update
The Company announced today that its Board of Directors,
together with the management team, updated the company’s dividend
policy, reducing the expected quarterly dividend approximately 50%
to $0.40 per share (implying $1.60 per share annually). With this
announcement, the Board of Directors has declared a regular
quarterly cash dividend of $0.40 per share of its common stock,
payable on April 10, 2024 to shareholders of record as of March 22,
2024.
The Company is right-sizing the dividend to enable faster
deleveraging of the balance sheet and provide improved financial
flexibility. IFF’s dividend is an important part of its capital
allocation framework, and the Company is committed to providing a
competitive yield.
Impairment of Goodwill
The Company has determined that for the fourth quarter of 2023
the carrying value of the Nourish reporting unit exceeded its fair
value and recorded a non-cash goodwill impairment charge of $2.6
billion in the Consolidated Statements of (Loss) Income and
Comprehensive Loss for the three and twelve months ended December
31, 2023. The primary drivers of the goodwill impairment are
related to increases in interest rates and lower business
projections due to volume declines mainly in Functional
Ingredients, continued cost inflation, and unfavorable foreign
exchange rate fluctuations.
A copy of the Company’s Annual Report on Form 10-K will be
available on its website at www.iff.com or at www.sec.gov by
February 29, 2024.
Audio Webcast
A live webcast to discuss the Company’s fourth quarter and full
year 2023 financial results will be held on February 21, 2024, at
9:00 a.m. ET. The webcast and accompanying slide presentation may
be accessed on the Company’s IR website at ir.iff.com. For those unable to listen to the live
webcast, a recorded version will be made available on the Company’s
website approximately one hour after the event and will remain
available on IFF’s website for one year.
Cautionary Statement Under The Private
Securities Litigation Reform Act of 1995
Statements in this press release, which are not historical facts
or information, are “forward-looking statements” within the meaning
of The Private Securities Litigation Reform Act of 1995. Such
forward looking statements are based on management’s current
assumptions, estimates and expectations including those concerning
the expected impact of global supply chain challenges; expectations
regarding sales and profit for the fiscal year 2024, including the
impact of foreign exchange, pricing actions, raw materials, energy
and sourcing, logistics and manufacturing costs; expectations of
the impact of inflationary pressures and the pricing actions to
offset exposure to such impacts; the impact of high input costs,
including commodities, raw materials, transportation and energy;
our ability to drive cost discipline measures and the ability to
recover margin to pre-inflation levels; expectations regarding the
implementation of our refreshed growth-focused strategy;
expectations around our business divestitures and the progress of
our portfolio optimization strategy (including the sale process for
our Cosmetic Ingredients business), through non-core business
divestitures and acquisitions; our combination with N&B,
including the expected benefits and synergies of the N&B
Transaction and future opportunities for the combined company, the
success of our integration efforts and ability to deliver on our
synergy commitments as well as future opportunities for the
combined company; the success of our optimization of our portfolio;
the impact of global economic uncertainty or recessionary pressures
on demand for consumer products; the growth potential of the
markets in which we operate, including the emerging markets;
expected capital expenditures in 2024; the expected costs and
benefits of our ongoing optimization of our manufacturing
operations, including the expected number of closings; expected
cash flow and availability of capital resources to fund our
operations and meet our debt service requirements; our ability to
drive reductions in expenses; our strategic investments in capacity
and increasing inventory to drive improved profitability; our
ability to innovate and execute on specific consumer trends and
demands; our ability to enhance our innovation efforts and drive
cost efficiencies; and our ability to continue to generate value
for, and return cash to, our shareholders.
These forward-looking statements should be evaluated with
consideration given to the many risks and uncertainties inherent in
our business that could cause actual results and events to differ
materially from those in the forward-looking statements. Certain of
such forward-looking information may be identified by such terms as
“expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”,
“estimate”, “should”, “predict” and similar terms or variations
thereof. Such forward-looking statements are based on a series of
expectations, assumptions, estimates and projections about the
Company, are not guarantees of future results or performance, and
involve significant risks, uncertainties and other factors,
including assumptions and projections, for all forward periods. Our
actual results may differ materially from any future results
expressed or implied by such forward-looking statements.
Such risks, uncertainties and other factors include, among
others, the following: (1) inflationary trends, including in the
price of our input costs, such as raw materials, transportation and
energy; (2) supply chain disruptions, geopolitical developments,
including the Russia-Ukraine war, the Israel-Hamas war, or climate
change related events (including severe weather events) that may
affect our suppliers or procurement of raw materials; (3) our
ability to successfully execute the next phase of our strategic
transformation; (4) risks related to the integration of the N&B
business, including whether we will realize the benefits
anticipated from the merger in the expected time frame; (5) our
substantial amount of indebtedness and its impact on our liquidity,
credit ratings and ability to return capital to our shareholders;
(6) our ability to enter into or close strategic transactions or
divestments or successfully establish and manage acquisitions,
collaborations, joint ventures or partnerships; (7) our ability to
successfully market to our expanded and diverse customer base; (8)
our ability to effectively compete in our market and develop and
introduce new products that meet customers’ needs; (9) our ability
to retain key employees; (10) changes in demand from large
multi-national customers due to increased competition and our
ability to maintain “core list” status with customers; (11) our
ability to successfully develop innovative and cost-effective
products that allow customers to achieve their own profitability
expectations; (12) the impact of global health crises on our supply
chains, global operations, our customers and our suppliers; (13)
disruption in the development, manufacture, distribution or sale of
our products from natural disasters, public health crises,
international conflicts (such as the Russia-Ukraine war and the
Israel-Hamas war), terrorist acts, labor strikes, political or
economic crises (such as the uncertainty related to protracted U.S.
federal debt ceiling negotiations), accidents and similar events;
(14) volatility and increases in the price of raw materials, energy
and transportation; (15) the impact of a significant data breach or
other disruption in our information technology systems, and our
ability to comply with data protection laws in the U.S. and abroad;
(16) our ability to comply with, and the costs associated with
compliance with, regulatory requirements and industry standards,
including regarding product safety, quality, efficacy and
environmental impact; (17) our ability to meet increasing customer,
consumer, shareholder and regulatory focus on sustainability; (18)
defects, quality issues (including product recalls), inadequate
disclosure or misuse with respect to the products and capabilities;
(19) our ability to react in a timely and cost-effective manner to
changes in consumer preferences and demands, including increased
awareness of health and wellness; (20) our ability to benefit from
our investments and expansion in emerging markets; (21) the impact
of currency fluctuations or devaluations in the principal foreign
markets in which we operate; (22) economic, regulatory and
political risks associated with our international operations; (23)
the impact of global economic uncertainty (including increased
inflation) on demand for consumer products; (24) our ability to
comply with, and the costs associated with compliance with, U.S.
and foreign environmental protection laws; (25) our ability to
successfully manage our working capital and inventory balances;
(26) the impact of our or our counterparties’ failure to comply
with the U.S. Foreign Corrupt Practices Act, similar U.S. or
foreign anti-bribery and anti-corruption laws and regulations,
applicable sanctions laws and regulations in the jurisdictions in
which we operate or ethical business practices and related laws and
regulations; (27) any impairment on our tangible or intangible long
lived assets, including goodwill associated with the N&B merger
and the acquisition of Frutarom; (28) our ability to protect our
intellectual property rights; (29) the impact of the outcomes of
legal claims, disputes, regulatory investigations and litigation,
related to intellectual property, product liability, competition
and antitrust, environmental matters, indirect taxes or other
matters; (30) changes in market conditions or governmental
regulations relating to our pension and postretirement obligations;
(31) the impact of changes in federal, state, local and
international tax legislation or policies, including the Tax Cuts
and Jobs Act, with respect to transfer pricing and state aid, and
adverse results of tax audits, assessments, or disputes; (32) the
impact of the United Kingdom’s departure from the European Union;
(33) the impact of the phase out of the London Interbank Offered
Rate (LIBOR) on interest expense; and (34) the impact of any tax
liability resulting from the N&B Transaction; and (35) our
ability to comply with data protection laws in the U.S. and
abroad.
The foregoing list of important factors does not include all
such factors, nor necessarily present them in order of importance.
In addition, you should consult other disclosures made by the
Company (such as in our other filings with the SEC or in company
press releases) for other factors that may cause actual results to
differ materially from those projected by the Company. Please refer
to Part I. Item 1A., Risk Factors, of the Company’s Annual Report
on Form 10-K filed with the SEC on February 27, 2023 for additional
information regarding factors that could affect our results of
operations, financial condition and liquidity.
We intend our forward-looking statements to speak only as of the
time of such statements and do not undertake or plan to update or
revise them as more information becomes available or to reflect
changes in expectations, assumptions or results. We can give no
assurance that such expectations or forward-looking statements will
prove to be correct. An occurrence of, or any material adverse
change in, one or more of the risk factors or risks and
uncertainties referred to in this press release or included in our
other periodic reports filed with the SEC could materially and
adversely impact our operations and our future financial results.
Any public statements or disclosures made by us following this
press release that modify or impact any of the forward-looking
statements contained in or accompanying this press release will be
deemed to modify or supersede such outlook or other forward-looking
statements in or accompanying this press release.
Use of Non-GAAP Financial
Measures
We provide in this press release non-GAAP financial measures,
including: (i) comparable currency neutral sales; (ii) adjusted
operating EBITDA and comparable currency neutral adjusted operating
EBITDA; (iii) adjusted operating EBITDA margin; (iv) adjusted EPS
ex amortization; (v) free cash flow; and (vi) net debt to credit
adjusted EBITDA.
Our non-GAAP financial measures are defined below.
Currency Neutral metrics eliminate the effects that result from
translating non-U.S. currencies to U.S. dollars. We calculate
currency neutral numbers by translating current year invoiced sale
amounts at the exchange rates used for the corresponding prior year
period. We use currency neutral results in our analysis of
subsidiary or segment performance. We also use currency neutral
numbers when analyzing our performance against our competitors.
Adjusted operating EBITDA and adjusted operating EBITDA margin
exclude depreciation and amortization expense, interest expense,
other (expense) income, net, and certain non-recurring or unusual
items that are not part of recurring operations such as,
restructuring and other charges, impairment of goodwill, impairment
of long-lived assets, acquisition, divestiture, and integration
related costs, strategic initiatives costs, regulatory costs,
impact of business divestitures, impact of business acquisitions
and other items.
Adjusted EPS ex Amortization excludes the impact of
non-operational items including, restructuring and other charges,
impairment of goodwill, impairment of long-lived assets,
acquisition, divestiture, and integration related costs, losses
(gains) on business disposals, gain on China facility relocation,
strategic initiatives costs, regulatory costs, and other items that
are not a part of recurring operations.
Free Cash Flow is operating cash flow (i.e. cash flow from
operations) less capital expenditures.
Net debt to credit adjusted EBITDA is the leverage ratio used in
our credit agreements and defined as net debt (which is debt for
borrowed money less cash and cash equivalents) divided by the
trailing 12-month credit adjusted EBITDA. Credit adjusted EBITDA is
defined as income (loss) before interest expense, income taxes,
depreciation and amortization, specified items and non-cash
items.
Comparable results for the fourth quarter and full year exclude
the impact of divestitures and acquisitions.
These non-GAAP measures are intended to provide additional
information regarding our underlying operating results and
comparable year-over-year performance. Such information is
supplemental to information presented in accordance with GAAP and
is not intended to represent a presentation in accordance with
GAAP. In discussing our historical and expected future results and
financial condition, we believe it is meaningful for investors to
be made aware of and to be assisted in a better understanding of,
on a period-to-period comparable basis, financial amounts both
including and excluding these identified items, as well as the
impact of exchange rate fluctuations. These non-GAAP measures
should not be considered in isolation or as substitutes for
analysis of the Company’s results under GAAP and may not be
comparable to other companies’ calculation of such metrics.
The Company cannot reconcile its expected adjusted operating
EBITDA under "Financial Guidance" without unreasonable effort
because certain items that impact net income and other reconciling
metrics are out of the Company's control and/or cannot be
reasonably predicted at this time. These items include but are not
limited to acquisition, divestiture and integration related costs,
gains (losses) on business disposals, and regulatory costs.
Welcome to IFF
At IFF (NYSE: IFF), an industry leader in food, beverage, scent,
health and biosciences, science and creativity meet to create
essential solutions for a better world – from global icons to
unexpected innovations and experiences. With the beauty of art and
the precision of science, we are an international collective of
thinkers who partners with customers to bring scents, tastes,
experiences, ingredients and solutions for products the world
craves. Together, we will do more good for people and planet. Learn
more at iff.com, Twitter, Facebook, Instagram, and LinkedIn.
_______________________ 1 Schedules at the end of this release
contain reconciliations of reported GAAP to Non-GAAP metrics. See
Use of Non-GAAP Financial Measures for explanations of our Non-GAAP
metrics. 2 Comparable results for the fourth quarter and full year
2023 exclude the impact of divestitures and acquisitions.
International Flavors &
Fragrances Inc.
Consolidated Statements of
Loss
(Amounts in millions except
per share data)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
% Change
2023
2022
% Change
Net sales
$
2,703
$
2,844
(5
)%
$
11,479
$
12,440
(8
)%
Cost of goods sold
1,843
1,975
(7
)%
7,798
8,289
(6
)%
Gross profit
860
869
(1
)%
3,681
4,151
(11
)%
Research and development expenses
157
143
10
%
636
603
5
%
Selling and administrative expenses
444
440
1
%
1,787
1,768
1
%
Restructuring and other charges
7
7
—
%
68
12
NMF
Amortization of acquisition-related
intangibles
167
175
(5
)%
680
727
(6
)%
Impairment of goodwill
2,623
—
NMF
2,623
2,250
17
%
Impairment of long-lived assets
—
—
NMF
—
120
(100
)%
Gains on sale of assets
(2
)
(1
)
100
%
(3
)
(3
)
—
%
Operating (loss) profit
(2,536
)
105
NMF
(2,110
)
(1,326
)
59
%
Interest expense
43
104
(59
)%
380
336
13
%
Other expense (income), net
62
6
NMF
28
(37
)
(176
)%
Loss before taxes
(2,641
)
(5
)
NMF
(2,518
)
(1,625
)
55
%
(Benefit from) provision for income
taxes
(32
)
19
(268
)%
45
239
(81
)%
Net loss
(2,609
)
(24
)
NMF
(2,563
)
(1,864
)
38
%
Net income attributable to non-controlling
interest
1
1
—
%
4
7
(43
)%
Net loss attributable to IFF
shareholders
$
(2,610
)
$
(25
)
NMF
$
(2,567
)
$
(1,871
)
37
%
Net loss per share - basic(1)
$
(10.21
)
$
(0.10
)
$
(10.05
)
$
(7.32
)
Net loss per share - diluted(1)
$
(10.21
)
$
(0.10
)
$
(10.05
)
$
(7.32
)
Average number of shares outstanding -
basic
255
255
255
255
Average number of shares outstanding -
diluted
255
255
255
255
(1)
Net loss per share reflects
adjustments related to the redemption value of certain redeemable
non-controlling interests.
NMF
Not meaningful
International Flavors &
Fragrances Inc.
Condensed Consolidated Balance
Sheets
(Amounts in millions)
(Unaudited)
December 31,
2023
2022
Cash, cash equivalents and restricted
cash
$
709
$
493
Receivables, net
1,726
1,818
Inventories
2,477
3,151
Other current assets
1,381
1,970
Total current assets
6,293
7,432
Property, plant and equipment, net
4,240
4,203
Goodwill and other intangibles, net
18,992
22,455
Other assets
1,453
1,432
Total assets
$
30,978
$
35,522
Short-term borrowings
$
885
$
597
Other current liabilities
2,873
3,131
Total current liabilities
3,758
3,728
Long-term debt
9,186
10,373
Non-current liabilities
3,392
3,677
Redeemable non-controlling interests
—
59
Shareholders' equity
14,642
17,685
Total liabilities and shareholders'
equity
$
30,978
$
35,522
International Flavors &
Fragrances Inc.
Consolidated Statements of
Cash Flows
(Amounts in millions)
(Unaudited)
Year Ended December
31,
2023
2022
Cash flows from operating
activities:
Net loss
$
(2,563
)
$
(1,864
)
Adjustments to reconcile to net cash
provided by operations:
Depreciation and amortization
1,142
1,179
Deferred income taxes
(369
)
(237
)
Gains on sale of assets
(3
)
(3
)
Losses (gains) on business
divestitures
23
(11
)
Stock-based compensation
65
49
Pension contributions
(36
)
(36
)
Impairment of goodwill
2,623
2,250
Impairment of long-lived assets
—
120
Inventory write-down
72
—
Changes in assets and liabilities, net of
acquisitions:
Trade receivables
51
(117
)
Inventories
605
(893
)
Accounts payable
(39
)
(57
)
Accruals for incentive compensation
(2
)
(34
)
Other current payables and accrued
expenses
19
92
Other assets/liabilities, net
(149
)
(41
)
Net cash provided by operating
activities
1,439
397
Cash flows from investing
activities:
Cash paid for acquisitions, net of cash
received
—
(110
)
Additions to property, plant and
equipment
(503
)
(504
)
Additions to intangible assets
—
(2
)
Proceeds from disposal of assets
27
8
Proceeds from unwinding of derivative
instruments
—
173
Cash provided by the Merger with
N&B
—
11
Net proceeds received from business
divestitures
1,050
1,169
Net cash provided by investing
activities
574
745
Cash flows from financing
activities:
Cash dividends paid to shareholders
(826
)
(810
)
Dividends paid to redeemable
non-controlling interests
(13
)
—
(Decrease) increase in revolving credit
facility and short term borrowings
(99
)
104
Proceeds from issuance of commercial paper
(maturities after three months)
—
225
Repayments of commercial paper (maturities
after three months)
—
(421
)
Net (repayments) borrowings of commercial
paper (maturities less than three months)
(187
)
48
Deferred financing costs
(5
)
—
Repayments of long-term debt
(655
)
(300
)
Purchases of redeemable non-controlling
interests
(39
)
(47
)
Deferred consideration paid
(6
)
—
Employee withholding taxes paid
(13
)
(21
)
Other, net
(8
)
(7
)
Net cash used in financing activities
(1,851
)
(1,229
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
21
(77
)
Net change in cash, cash equivalents
and restricted cash
183
(164
)
Cash, cash equivalents and restricted cash
at beginning of year
552
716
Cash, cash equivalents and restricted
cash at end of year
$
735
$
552
The following table reconciles cash, cash equivalents and
restricted cash between the Company's balance sheets as of December
31, 2023 and 2022 to the amounts reported on the Company's
statement of cash flows for the periods ended December 31, 2023 and
2022.
AMOUNTS IN
MILLIONS
December 31, 2023
December 31, 2022
December 31, 2021
Current assets
Cash and cash equivalents
$
703
$
483
$
711
Cash and cash equivalents included in
Assets held for sale
26
52
—
Restricted cash
6
10
4
Non-current assets
Restricted cash included in Other
assets
—
7
1
Cash, cash equivalents and restricted
cash
$
735
$
552
$
716
International Flavors &
Fragrances Inc.
Reportable Segment
Performance
(Amounts in millions)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Net Sales
Nourish
$
1,394
$
1,577
$
6,060
$
6,829
Health & Biosciences
528
501
2,081
2,339
Scent
578
545
2,393
2,301
Pharma Solutions
203
221
945
971
Consolidated
$
2,703
$
2,844
$
11,479
$
12,440
Segment Adjusted Operating
EBITDA
Nourish
$
165
$
195
$
732
$
1,176
Health & Biosciences
162
121
588
634
Scent
108
95
461
423
Pharma Solutions
26
30
199
222
Total
461
441
1,980
2,455
Depreciation & Amortization
(287
)
(282
)
(1,142
)
(1,179
)
Interest Expense
(43
)
(104
)
(380
)
(336
)
Other (Expense) Income, net
(62
)
(6
)
(28
)
37
Restructuring and Other Charges
(7
)
(7
)
(68
)
(12
)
Impairment of Goodwill
(2,623
)
—
(2,623
)
(2,250
)
Impairment of Long-Lived Assets
—
—
—
(120
)
Acquisition, Divestiture and Integration
Related Costs
(56
)
(34
)
(174
)
(201
)
Strategic Initiatives Costs
(3
)
(7
)
(31
)
(8
)
Regulatory Costs
(18
)
—
(50
)
—
Other
(3
)
(6
)
(2
)
(11
)
Loss Before Taxes
$
(2,641
)
$
(5
)
$
(2,518
)
$
(1,625
)
Segment Adjusted Operating EBITDA
Margin
Nourish
11.8
%
12.4
%
12.1
%
17.2
%
Health & Biosciences
30.7
%
24.2
%
28.3
%
27.1
%
Scent
18.7
%
17.4
%
19.3
%
18.4
%
Pharma Solutions
12.8
%
13.6
%
21.1
%
22.9
%
Consolidated
17.1
%
15.5
%
17.2
%
19.7
%
International Flavors & Fragrances
Inc. GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedules
are not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Gross
Profit
Fourth Quarter
(DOLLARS IN MILLIONS)
2023
2022
Reported (GAAP)
$
860
$
869
Adjusted (Non-GAAP)
$
860
$
869
Reconciliation of Selling and
Administrative Expenses
Fourth Quarter
(DOLLARS IN MILLIONS)
2023
2022
Reported (GAAP)
$
444
$
440
Acquisition, Divestiture and Integration
Related Costs (c)
(56
)
(34
)
Strategic Initiatives Costs (e)
(3
)
(7
)
Regulatory Costs (f)
(18
)
—
Other (g)
(5
)
(7
)
Adjusted (Non-GAAP)
$
362
$
392
International Flavors & Fragrances
Inc. GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedules
are not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Net (Loss)
Income and EPS
Fourth Quarter
2023
2022
(DOLLARS IN MILLIONS EXCEPT PER SHARE
AMOUNTS)
(Loss) income before
taxes
Benefit from income taxes
(i)
Net (loss) income attributable
to IFF (j)
Diluted EPS (k)
(Loss) income before
taxes
Provision for (benefit from)
income taxes (i)
Net (loss) income attributable
to IFF (j)
Diluted EPS (k)
Reported (GAAP)
$
(2,641
)
$
(32
)
$
(2,610
)
$
(10.21
)
$
(5
)
$
19
$
(25
)
$
(0.10
)
Restructuring and Other Charges (a)
7
2
5
0.02
7
1
6
0.02
Impairment of Goodwill (b)
2,623
38
2,585
10.11
—
—
—
—
Acquisition, Divestiture and Integration
Related Costs (c)
56
(20
)
76
0.30
34
(63
)
97
0.39
Losses (Gains) on Business Disposals
(d)
(6
)
9
(15
)
(0.06
)
3
14
(11
)
(0.04
)
Strategic Initiatives Costs (e)
3
—
3
0.01
7
2
5
0.02
Regulatory Costs (f)
18
4
14
0.05
—
—
—
—
Other (g)
(4
)
(2
)
(2
)
(0.01
)
6
—
6
0.03
Redemption value adjustment to EPS (h)
—
—
—
(0.01
)
—
—
—
—
Adjusted (Non-GAAP)
$
56
$
(1
)
$
56
$
0.22
$
52
$
(27
)
$
78
$
0.31
Reconciliation of Adjusted
(Non-GAAP) EPS ex. Amortization
Fourth Quarter
(DOLLARS AND SHARE AMOUNTS IN
MILLIONS)
2023
2022
Numerator
Adjusted (Non-GAAP) Net Income
$
56
$
78
Amortization of Acquisition related
Intangible Assets
167
175
Tax impact on Amortization of Acquisition
related Intangible Assets (i)
38
40
Amortization of Acquisition related
Intangible Assets, net of tax (l)
129
135
Adjusted (Non-GAAP) Net Income ex.
Amortization
$
185
$
213
Denominator
Weighted average shares assuming dilution
(diluted)
256
255
Adjusted (Non-GAAP) EPS ex.
Amortization
$
0.72
$
0.83
(a)
For 2023 and 2022, represents costs
primarily related to severance as part of the Company's
restructuring efforts.
(b)
Represents costs related to the impairment
of goodwill in the Nourish reporting unit.
(c)
For 2023 and 2022, primarily represents
costs related to the Company's actual and planned acquisitions and
divestitures and integration related activities primarily for
N&B. These costs primarily consisted of external consulting
fees, professional and legal fees and salaries of individuals who
are fully dedicated to such efforts. For 2023, acquisition costs
primarily relate to earn-out adjustments. For 2022, acquisition
costs primarily relate to consulting fees, legal fees and earn-out
adjustments. Tax expenses for business divestiture costs included
establishments of deferred tax liabilities related to planned sales
of businesses.
For the three months ended December 31,
2023, business divestiture, integration and acquisition related
costs were approximately $38 million, $17 million and $1 million,
respectively. For the three months ended December 31, 2022,
business divestiture, integration and acquisition related costs
were approximately $19 million, $21 million and a credit of $6
million, respectively.
(d)
For 2023, primarily represents the impact
of adjustments to the loss recognized related to the divestiture of
the portion of the Savory Solutions business based on final
settlement with the buyer. For 2022, represents adjustments to the
gain recognized related to the divestiture of the Microbial Control
business unit.
(e)
Represents costs related to the Company's
strategic assessment and business portfolio optimization efforts
and reorganizing the Global Shared Services Centers, primarily
consulting fees.
(f)
Represents costs primarily related to
legal fees incurred for the ongoing investigations of the fragrance
businesses.
(g)
For 2023, represents gains from sale of
assets, costs related to severance, including accelerated stock
compensation expense, for a certain executive who will separate
from the Company in 2024 and pension settlement credits recognized
for various pension plans of the Company. For 2022, represents
gains from sale of assets and costs related to severance, including
accelerated stock compensation expense, for certain employees and
executives who have been separated from the Company in 2022.
(h)
Represents the adjustment to EPS related
to the excess of the redemption value of certain redeemable
non-controlling interests over their existing carrying value.
(i)
The income tax effects of non-GAAP
adjustments are calculated based on the applicable statutory tax
rate for the relevant jurisdiction, except for those items which
are non-taxable or subject to valuation allowances for which the
tax expense (benefit) was calculated at 0%. The tax benefit for
amortization is calculated in a similar manner as the tax effects
of the non-GAAP adjustments.
(j)
For 2023 and 2022, reported net loss is
increased by income attributable to non-controlling interest of $1
million, and adjusted net income is decreased by income
attributable to non-controlling interest of $1 million.
(k)
The sum of these items does not foot due
to rounding.
(l)
Represents all amortization of intangible
assets acquired in connection with acquisitions, net of tax.
International Flavors & Fragrances
Inc. GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedules
are not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Gross
Profit
Year Ended December
31,
(DOLLARS IN MILLIONS)
2023
2022
Reported (GAAP)
$
3,681
$
4,151
Acquisition, Divestiture and Integration
Related Costs (d)
—
2
Adjusted (Non-GAAP)
$
3,681
$
4,153
Reconciliation of Selling and
Administrative Expenses
Year Ended December
31,
(DOLLARS IN MILLIONS)
2023
2022
Reported (GAAP)
$
1,787
$
1,768
Acquisition, Divestiture and Integration
Related Costs (d)
(174
)
(199
)
Strategic Initiatives Costs (g)
(31
)
(8
)
Regulatory Costs (h)
(50
)
—
Other (i)
(5
)
(14
)
Adjusted (Non-GAAP)
$
1,527
$
1,547
International Flavors & Fragrances
Inc. GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedules
are not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Net (Loss)
Income and EPS
Year Ended December
31,
2023
2022
(DOLLARS IN MILLIONS EXCEPT PER SHARE
AMOUNTS)
(Loss) income before
taxes
Provision for income taxes
(k)
Net (loss) income attributable
to IFF (l)
Diluted EPS (m)
(Loss) income before
taxes
Provision for income taxes
(k)
Net (loss) income attributable
to IFF (l)
Diluted EPS
Reported (GAAP)
$
(2,518
)
$
45
$
(2,567
)
$
(10.05
)
$
(1,625
)
$
239
$
(1,871
)
$
(7.32
)
Restructuring and Other Charges (a)
68
18
50
0.20
12
2
10
0.04
Impairment of Goodwill (b)
2,623
38
2,585
10.11
2,250
—
2,250
8.81
Impairment of Long-Lived Assets (c)
—
—
—
—
120
24
96
0.38
Acquisition, Divestiture and Integration
Related Costs (d)
174
(16
)
190
0.74
201
(41
)
242
0.94
Losses (Gains) on Business Disposals
(e)
23
(2
)
25
0.10
(11
)
(96
)
85
0.34
Gain on China Facility Relocation (f)
(22
)
(6
)
(16
)
(0.06
)
—
—
—
—
Strategic Initiatives Costs (g)
31
6
25
0.10
8
2
6
0.02
Regulatory Costs (h)
50
11
39
0.15
—
—
—
—
Other (i)
(5
)
(2
)
(3
)
(0.01
)
11
1
10
0.04
Redemption value adjustment to EPS (j)
—
—
—
(0.01
)
—
—
—
(0.01
)
Adjusted (Non-GAAP)
$
424
$
92
$
328
$
1.28
$
966
$
131
$
828
$
3.24
Reconciliation of Adjusted
(Non-GAAP) EPS ex. Amortization
Year Ended December
31,
(DOLLARS AND SHARE AMOUNTS IN
MILLIONS)
2023
2022
Numerator
Adjusted (Non-GAAP) Net Income
$
328
$
828
Amortization of Acquisition related
Intangible Assets
680
727
Tax impact on Amortization of Acquisition
related Intangible Assets (k)
155
170
Amortization of Acquisition related
Intangible Assets, net of tax (n)
525
557
Adjusted (Non-GAAP) Net Income ex.
Amortization
$
853
$
1,385
Denominator
Weighted average shares assuming dilution
(diluted)
256
255
Adjusted (Non-GAAP) EPS ex.
Amortization
$
3.34
$
5.42
(a)
For 2023 and 2022, represents
costs primarily related to severance as part of the Company's
restructuring efforts.
(b)
For 2023, represents costs
related to the impairment of goodwill in the Nourish reporting
unit. For 2022, represents costs related to the impairment of
goodwill in the Health & Biosciences reporting unit.
(c)
Represents costs related to the
impairment of intangible and fixed assets of an asset group that
operated primarily in Russia.
(d)
For 2023 and 2022, primarily
represents costs related to the Company's actual and planned
acquisitions and divestitures and integration related activities
primarily for N&B. These costs primarily consisted of external
consulting fees, professional and legal fees and salaries of
individuals who are fully dedicated to such efforts. For 2023,
acquisition costs primarily relate to earn-out adjustments. For
2022, acquisition costs primarily relate to consulting fees, legal
fees and earn-out adjustments. Tax expenses for business
divestiture costs included establishments of deferred tax
liabilities related to planned sales of businesses.
For the year ended December 31,
2023, business divestiture, integration and acquisition related
costs were approximately $108 million, $59 million and $7 million,
respectively. For the year ended December 31, 2022, business
divestiture, integration and acquisition related costs were
approximately $110 million, $94 million and a credit of $3 million,
respectively.
(e)
For 2023, represents losses
recognized related to the liquidation of a business in Russia, for
the sale of the portion of the Savory Solutions business, and
divestitures of the portion of the Savory Solutions business and
Flavor Specialty Ingredients business. For 2022, represents gain
recognized related to the divestiture of the Microbial Control
business unit.
(f)
Represents gain recognized from
the completion of the relocation of a facility in China.
(g)
Represents costs related to the
Company's strategic assessment and business portfolio optimization
efforts and reorganizing the Global Shared Services Centers,
primarily consulting fees.
(h)
Represents costs primarily
related to legal fees incurred for the ongoing investigations of
the fragrance businesses.
(i)
For 2023, represents gains from
sale of assets, costs related to severance, including accelerated
stock compensation expense, for a certain executive who will
separate from the Company in 2024 and pension settlement credits
recognized for various pension plans of the Company. For 2022,
represents gains from sale of assets, costs related to severance,
including accelerated stock compensation expense, for certain
employees and executives who have been separated from the Company
in 2022 and shareholder activist related costs, primarily
professional fees.
(j)
Represents the adjustment to EPS
related to the excess of the redemption value of certain redeemable
non-controlling interests over their existing carrying value.
(k)
The income tax effects of
non-GAAP adjustments are calculated based on the applicable
statutory tax rate for the relevant jurisdiction, except for those
items which are non-taxable or subject to valuation allowances for
which the tax expense (benefit) was calculated at 0%. The tax
benefit for amortization is calculated in a similar manner as the
tax effects of the non-GAAP adjustments.
(l)
For 2023 and 2022, reported net
loss is increased by income attributable to non-controlling
interest of $4 million and $7 million, respectively, and adjusted
net income is decreased by income attributable to non-controlling
interest of $4 million and $7 million, respectively.
(m)
The sum of these items does not
foot due to rounding.
(n)
Represents all amortization of
intangible assets acquired in connection with acquisitions, net of
tax.
International Flavors & Fragrances
Inc. Debt Covenants (Amounts in millions)
(Unaudited)
The following information and schedules provide
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedules
are not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Credit
Adjusted EBITDA to Net Loss
(DOLLARS IN
MILLIONS)
Year Ended December 31,
2023
Net loss
$
(2,567
)
Interest expense(1)
380
Income taxes
45
Depreciation and amortization
1,142
Specified items(2)
2,944
Non-cash items(3)
135
Credit Adjusted EBITDA
$
2,079
_______________________
(1)
Beginning in the fourth quarter of 2023,
certain adjustments were made to interest expense associated with
our cash pooling arrangements.
(2)
Specified items consisted of restructuring
and other charges, impairment of goodwill, acquisition, divestiture
and integration related costs, strategic initiatives costs,
regulatory costs and other costs that are not related to recurring
operations.
(3)
Non-cash items consisted of gains on sale
of assets, losses on business disposals, gain on China facility
relocation, write-down of inventory related to LBK and stock-based
compensation.
Net Debt to Total Debt
(DOLLARS IN
MILLIONS)
December 31, 2023
Total debt(1)
$
10,096
Adjustments:
Cash and cash equivalents(2)
729
Net debt
$
9,367
_______________________
(1)
Total debt used for the calculation of net
debt consisted of short-term debt, long-term debt, short-term
finance lease obligations and long-term finance lease
obligations.
(2)
Cash and cash equivalents included
approximately $26 million currently in Assets held for sale on the
Consolidated Balance Sheets.
International Flavors & Fragrances
Inc. Comparable Reportable Segment Performance
(Amounts in millions) (Unaudited)
The following information and schedule provides
reconciliation information between reported GAAP amounts and
non-GAAP certain adjusted amounts. This information and schedule is
not intended as, and should not be viewed as, a substitute for
reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Net Sales
Nourish(1)
$
1,394
$
1,447
$
6,060
$
6,519
Health & Biosciences(2)
528
501
2,072
2,102
Scent(3)
578
527
2,393
2,267
Pharma Solutions
203
221
945
971
Consolidated
$
2,703
$
2,696
$
11,470
$
11,859
Segment Adjusted Operating
EBITDA
Nourish(1)
$
165
$
180
$
732
$
1,135
Health & Biosciences(2)
162
121
590
598
Scent(3)
108
90
461
412
Pharma Solutions
26
30
199
222
Total
461
421
1,982
2,367
Depreciation & Amortization
(287
)
(282
)
(1,142
)
(1,179
)
Interest Expense
(43
)
(104
)
(380
)
(336
)
Other (Expense) Income, net
(62
)
(6
)
(28
)
37
Restructuring and Other Charges
(7
)
(7
)
(68
)
(12
)
Impairment of Goodwill
(2,623
)
—
(2,623
)
(2,250
)
Impairment of Long-Lived Assets
—
—
—
(120
)
Acquisition, Divestiture and Integration
Related Costs
(56
)
(34
)
(174
)
(201
)
Strategic Initiatives Costs
(3
)
(7
)
(31
)
(8
)
Regulatory Costs
(18
)
—
(50
)
—
Other
(3
)
(6
)
(2
)
(11
)
Impact of Business Divestitures(4)
—
20
—
88
Impact of Business Acquisitions(5)
—
—
(2
)
—
Loss Before Taxes
$
(2,641
)
$
(5
)
$
(2,518
)
$
(1,625
)
Segment Adjusted Operating EBITDA
Margin
Nourish
11.8
%
12.4
%
12.1
%
17.4
%
Health & Biosciences
30.7
%
24.2
%
28.5
%
28.4
%
Scent
18.7
%
17.1
%
19.3
%
18.2
%
Pharma Solutions
12.8
%
13.6
%
21.1
%
22.9
%
Consolidated
17.1
%
15.6
%
17.3
%
20.0
%
______________________
(1)
Nourish sales and segment adjusted
operating EBITDA information for the three months and year ended
December 31, 2022 exclude the results of the Savory Solutions
business that was divested to present fully comparable scenarios of
the Company. The divestiture was completed on May 31, 2023.
(2)
Health & Biosciences sales and segment
adjusted operating EBITDA information for the year ended December
31, 2023 exclude the results of Health Wright Products for the
first quarter of 2023. In addition, the information for the year
ended December 31, 2022 exclude the results of the Microbial
Control business unit for the first and second quarters of 2022.
The exclusion of these results help to present fully comparable
scenarios of the Company as the acquisition of Health Wright
Products was completed on April 1, 2022 and the divestiture of the
Microbial Control business unit was completed on July 1, 2022. As a
result, there was no impact from Health Wright Products and the
Microbial Control business unit for the first quarter of 2022 and
the first and second quarters of 2023, respectively.
(3)
Scent sales and segment adjusted operating
EBITDA information for the three months and year ended December 31,
2022 exclude the results of the Flavor Specialty Ingredients
business that was divested to present fully comparable scenarios of
the Company. The divestiture was completed on August 1, 2023.
(4)
Information related to the amounts exclude
the results of the Microbial Control business unit, the portion of
the Savory Solutions business and Flavor Specialty Ingredients
business that were divested in the third quarter of 2022 (July 1,
2022), second quarter of 2023 (May 31, 2023) and third quarter of
2023 (August 1, 2023), respectively, to present fully comparable
scenarios of the Company.
(5)
Information related to the amount excludes
the results of Health Wright Products for the first quarter of 2023
to present fully comparable scenarios of the Company, as the
acquisition of Health Wright Products was completed on April 1,
2022.
International Flavors &
Fragrances Inc.
GAAP to Non-GAAP
Reconciliation
Comparable Foreign Exchange
Impact
(Unaudited)
Q4 Nourish
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
(12)%
(15)%
(0.6)%
Portfolio Impact
8%
7%
0.0%
% Change - Comparable
(4)%
(8)%
(0.6)%
Currency Impact
1%
11%
1.3%
% Change - Currency Neutral
(3)%
3%
0.7%
Q4 Health & Biosciences
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
5%
34%
6.5%
Portfolio Impact
0%
0%
0.0%
% Change - Comparable
5%
34%
6.5%
Currency Impact
0%
1%
0.3%
% Change - Currency Neutral
5%
35%
6.8%
Q4 Scent
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
6%
14%
1.3%
Portfolio Impact
4%
6%
0.3%
% Change - Comparable
10%
20%
1.6%
Currency Impact
1%
14%
1.9%
% Change - Currency Neutral
11%
34%
3.5%
Q4 Pharma Solutions
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
(8)%
(13)%
(0.8)%
Portfolio Impact
0%
0%
0.0%
% Change - Comparable
(8)%
(13)%
(0.8)%
Currency Impact
(2)%
0%
0.4%
% Change - Currency Neutral
(10)%
(13)%
(0.4)%
Q4 Consolidated
Sales
Adjusted Operating
EBITDA
Adjusted Operating EBITDA
Margin
% Change - Reported
(5)%
5%
1.6%
Portfolio Impact
5%
5%
(0.1)%
% Change - Comparable
0%
10%
1.5%
Currency Impact
1%
7%
1.1%
% Change - Currency Neutral
1%
17%
2.6%
_______________________ Note: The sum of these items may not
foot due to rounding.
International Flavors &
Fragrances Inc.
GAAP to Non-GAAP
Reconciliation
Comparable Foreign Exchange
Impact
(Unaudited)
YTD
Nourish
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
(11)%
(38)%
(5.1)%
Portfolio Impact
4%
2%
(0.2)%
% Change - Comparable
(7)%
(36)%
(5.3)%
Currency Impact
2%
9%
1.2%
% Change - Currency Neutral
(5)%
(27)%
(4.1)%
YTD Health &
Biosciences
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
(11)%
(7)%
1.2%
Portfolio Impact
10%
6%
(1.1)%
% Change - Comparable
(1)%
(1)%
0.1%
Currency Impact
1%
3%
0.3%
% Change - Currency Neutral
0%
2%
0.4%
YTD Scent
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
4%
9%
0.9%
Portfolio Impact
2%
3%
0.2%
% Change - Comparable
6%
12%
1.1%
Currency Impact
2%
10%
1.3%
% Change - Currency Neutral
8%
22%
2.4%
YTD Pharma
Solutions
Sales
Segment Adjusted Operating
EBITDA
Segment Adjusted Operating
EBITDA Margin
% Change - Reported
(3)%
(10)%
(1.8)%
Portfolio Impact
0%
0%
0.0%
% Change - Comparable
(3)%
(10)%
(1.8)%
Currency Impact
0%
0%
0.2%
% Change - Currency Neutral
(3)%
(10)%
(1.6)%
YTD
Consolidated
Sales
Adjusted Operating
EBITDA
Adjusted Operating EBITDA
Margin
% Change - Reported
(8)%
(19)%
(2.5)%
Portfolio Impact
4%
3%
(0.2)%
% Change - Comparable
(3)%
(16)%
(2.7)%
Currency Impact
2%
6%
1.0%
% Change - Currency Neutral
(1)%
(10)%
(1.7)%
_______________________ Note: The sum of these items may not
foot due to rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240220754552/en/
Media Relations: Paulina Heinkel 332.877.5339
Media.request@iff.com
Investor Relations: Michael Bender 212.708.7263
Investor.Relations@iff.com
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