International Flavors & Fragrances Inc. (NYSE: IFF), a leading global creator of flavors and fragrances for consumer products, today reported financial results for the second quarter ended June 30, 2013.
Second Quarter 2013 Results
- Reported net sales for the second quarter totaled $757.6 million, an increase of 5% from $721.3 million in the second quarter of 2012. Excluding the impact of foreign currency, local currency sales increased 6%. Like-for-like sales, which excludes the impact of foreign currency and the exit of low-margin sales activities in Flavors, increased 8%.
- Reported EPS for the second quarter totaled $1.24 per diluted share compared with $1.08 per diluted share in the prior year second quarter, an increase of 15%.
- Adjusted EPS, which excludes a $16.1 million gain on the sale of a non-operating asset, as well as a $2.9 million restructuring charge related to the Fragrance Ingredients rationalization, increased 6% to $1.14 per diluted share in the second quarter, up from a reported and adjusted $1.08 per diluted share in the second quarter of 2012.
Please see the information and schedules at the end of this release for reconciliations of GAAP to non-GAAP financial metrics.
Management CommentaryDoug Tough, Chairman and Chief Executive Officer of IFF said, “IFF achieved strong operating results this quarter, with both business units achieving double-digit growth in segment profit, due to the continued disciplined execution of our strategy. By focusing on expanding our geographic reach, strengthening our innovation platform and maximizing the value of our portfolio, we achieved strong top-line growth and margin expansion. Our profitability metrics, including gross profit margin, adjusted operating profit margin and adjusted net income margin, were all ahead of the prior year figures.” Mr. Tough continued, “Our operating performance was partially offset by foreign exchange losses on working capital, resulting in adjusted EPS growth of 6%. When combined with our growth in the first quarter of 2013, our adjusted EPS for the first half of the year increased 12% over the prior year comparable figure.”