During the quarter local currency sales increased by 4% to $742.3m, compared to the corresponding period last year, which was underpinned by the fact that reported sales increased by 5%.
On a geographical basis, the company revealed that the main driving force behind the increase was an 8% hike in revenues from its emerging market.
Emerging markets lead the way
Net income for the period rose significantly, from $16.3m last year, to a figure of $99.04m for the current quarter, a figure that excluded a $72.4m charge related to a Spanish tax settlement from the previous financial year.
“Our consolidated local currency sales growth of 4% was led by 8% growth in the emerging markets, which continue to grow at two to three times the rate of the developed markets with strong performance across both of our business units. We are also beginning to see greater stability in our Fragrance Ingredients business," said Doug Tough, IFF CEO.
In the fragrance division, sales were up by 7% on a reported basis and 5% in local currencies to $392.9m, compared to $468.3m in the corresponding period last year.
Fragrance compounds prove a driving force
The highlights in the division included fragrance compound sales growing by 7% overall and by well into double-digit figures in emerging markets – underpinned by local currency sales growth of 5% in Fine & Beauty Care, together with local currency sales growth of 8% in functional fragrances.
Figures for the fragrance division as a whole was counterbalanced by the fact that fragrance ingredient sales were flat, though the company did point out that this category is showing signs of stabilization.
“Looking forward, we expect to see moderate growth in the fourth quarter, given the strong growth achieved in the prior year period. We continue to expect that the Company will deliver on its long-term growth targets for the full year 2013,” said Tough.