“We are pleased with our results in targeted growth areas such as North America, where we saw an 11% sales increase for the first quarter of 2016 driven by our recent acquisitions and strong growth in Fragrances,” says chairman and CEO Andreas Fibig.
Though as Maria Armental reports on MarketWatch.com, “for the year, International Flavors…remains cautious about its performance, citing marking volatility.”
Outside of North America, another market where fragrance is doing well for the company is the Middle East & Africa.
Results and reasons
IFF is reporting a 6% increase in sales for the first quarter (on a neutral currency basis). The company’s adjusted operating profit is up 7%, and adjusted earnings per share (EPS) are up 11%. (Those figures too are on an neutral currency basis.)
The company’s strategic objectives are proving beneficial to the bottom line, as Fibig explains. “We also continue to make strides in our Vision 2020 strategy focused on building greater differentiation, accelerating profitable growth and increasing shareholder value.”
One of these objectives, to “achieve market leadership position in key markets, categories & customers,” is on track, as growth in fragrance helped push North American sales up over 10%. And another such objective, to “pursue value creation through collaborations & acquisitions,” is clearly being realized since, on a stand-alone basis, IFF | Lucas Meyer saw double digit growth this quarter.
Striving for industry excellence
The management commentary that the company included with their quarterly financial report, highlighted the value of new ideas: “innovation and R&D are crucial to our success,” says Fibig, “demonstrated by delivery systems in both Flavors & Fragrances continuing to be a growth driver in the quarter.”
In personal care, IFF | Lucas Meyer has launched some compelling ingredients lately. At in-cosmetics last month in Paris, they debuted Defenscalp. And at the same event the company won an innovation award for a skin care ingredient called Miniporyl.