International Flavors & Fragrances Inc. (NYSE:IFF) Q4 2018 Earnings Conference Call - Final Transcript

Feb 14, 2019 • 10:00 am ET

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International Flavors & Fragrances Inc. (NYSE:IFF) Q4 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

At this time, I would like to welcome everyone to the International Flavors & Fragrances Fourth Quarter and Full Year 2018 Earnings Conference Call. [Operator Instructions]

I would now like to introduce Michael DeVeau, Head of Investor Relations. You may begin.

Executive
Michael DeVeau

Thank you. Good morning, good afternoon, and good evening everyone. Welcome to IFF's fourth quarter and full-year 2018 conference call. Yesterday evening, we distributed a press release announcing our financial results, a copy of the release can be found on our IR website at ir.iff.com. Please note that this call is being recorded live and will be available for replay. Please take a moment to review our forward-looking statements.

During the call, we will be making forward-looking statements about the Company's performance, particularly with regard to the outlook for the first quarter and full-year 2019. These statements are based on how we see things today and contain elements of uncertainty. For additional information concerning the factors that can cause actual results to differ materially from forward-looking statements, please refer to the cautionary statement and risk factors contained in our 10-K filed on February 27, 2018, and in our press release that we filed yesterday.

Today's presentation will include non-GAAP financial measures, which excludes those items that we believe affect comparability. A reconciliation of these non-GAAP financial measures to their respective GAAP measures is set forth in our press release.

The purpose of this Presentation, please don't that we've calculated combined numbers by combining our results with the results of Frutarom, prior to the acquisition on October 4, 2018, and adjusting for divestitures of Frutarom businesses since October 4, 2018.

With me on the call today is our Chairman and CEO, Andreas Fibig; and our Executive Vice President and CFO, Rich O'Leary. We will start prepared remarks and then take any questions that you may have.

With that, I'd now like to introduce Andreas.

Executive
Andreas Fibig

Thank you, Mike. On the call today, I will give an executive overview of our operational performance for 2018. Once, finished, I will ask Rich to give a more in-depth financial review of the business before leading into our integration priorities for 2019 of the Frutarom acquisition. We will then provide an update on our financial expectations for 2019.

And then, as usual take any questions that you may have.

I'm very pleased to say that 2018 proved to be a historic year in a long and successful history of IFF. As we recently celebrated our 130th year birthday, we delivered on all of our key financial metrics and completed the acquisition of Frutarom, largest deal in our industry to-date, all while successfully navigating a challenging and dynamic market environment.

We achieved strong advancements in both top and bottom line results in 2018. But we're in line with our guidance range that we set forth. Highlights include our record-setting sales of approximately $4 billion, which was a 17% increase over last year. This performance was driven by mid single-digit growth in both taste and scent, as well