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$IFF's third quarter profits soared 23% to $110MM due to overall strong performance from all its categories. Sales from its two business segments Flavors and Fragrances grew double digits 12% and 13% respectively. Based on YTD performance, the company reaffirmed its FY17 outlook. It expects GAAP EPS to be in the range of 6.5-7.5%.
$IFF has authorized a quarterly dividend of $0.69 per share of its common stock, an increase of $0.05 or 8% from the current quarterly dividend of $0.64 per share. The dividend is payable on Oct. 6, 2017 to shareholders of record as on Sept. 25, 2017.
$IFF, a manufacturer of flavours and fragrances, has launched a new business unit named Tastepoint by IFF. The new company, created by merging David Michael & Co. and Ottens Flavors, is designed to service middle-market customer in North America.
$IFF and ZoomEssence Inc. have mutually agreed to settle all claims and counterclaims brought in a lawsuit in the United States District Court for New Jersey. Under the agreement, International Flavors & Fragrances will make a one-time payment to ZoomEssence of $56MM, and the parties will exchange full mutual releases.
$IFF has priced an underwritten public offering of $500MM in aggregate principal amount of 4.375% senior notes due 2047. Net proceeds will be used to repay at maturity $250MM of its outstanding 6.25% Series A Senior Notes due September 27, 2017, to repay debts and for general corporate purposes. The offering is expected to close on May 18, 2017.
$IFF had a product recall in 1Q17 in North America which was a contamination issue that was traced back to one of the suppliers. The customer and the FDA were notified following which a product recall was mandated. No illnesses were reported. The related sales and inventory write-off charge totaled about $1.8MM.
$IFF is seeing good performance in North America and Europe. In emerging markets, there are a lot of headwinds in terms of currency. There is a lot of economic turmoil and volatility in Latin America, Middle East and China. The contribution of the emerging markets is not currently strong but $IFF believes it will see growth over time.
$IFF said 1Q17 was challenging from a revenue standpoint and full-year 2017 expectations are based on current views in terms of confirmed new wins. $IFF expects volume erosion and destocking to have less of an impact in 2017. $IFF expects improved performance particularly in 2H17 related to Lucas Meyer, and greater contribution from acquisitions.
$IFF reported a dip in earnings for 1Q17, but recent acquisitions boosted the sales. The fragrance company posted a 2% YoY decline in net income to $115.7MM, or $1.45 per diluted share. Net sales grew 6% to $828.3MM driven by recent acquisitions and a strong performance in Flavors segment.
$IFF acquired Columbia Phytotechnology LLC, a/k/a PowderPure on April 7, 2017. PowderPure focuses on whole fruits and vegetable powders, juice powders, as well as other specialty products. Financial terms of the deal have not been disclosed.
$IFF acquired Columbia Phytotechnology LLC, a/k/a PowderPure on April 7, 2017 for undisclosed terms. PowderPure utilizes its patented Infidri drying technology to create all-natural food ingredients by eliminating water while leaving the taste, nutrition and color matrix intact.