International Flavors & Fragrances (IFF) - Get International Flavors & Fragrances Inc. (IFF) Report on Wednesday posted better-than-anticipated earnings and revenue for the 2016 fourth quarter.
After the market close, the New York-based flavor and fragrance company reported adjusted earnings of $1.22 per diluted share, topping analysts' estimates of $1.19 per share. Revenue came in at $762.6 million, higher than the FactSet consensus of $750.9 million.
The company also announced a multiyear productivity program to invest and deliver long-term targets in 2018and expects to reduce its global workforce by about 5%.
Over the past two years, "we have seen the global operating environment become more volatile as global consumer staples volumes are soft, currencies are fluctuating and raw material costs are trending higher," CEO Andreas Fibig said in a statement.
"Fully recognizing the changing landscape, we are taking action to continue to deliver winning solutions to our customers while achieving sustainable profitable growth," he added.
During the fourth quarter, fragrance business unit sales increased 1% to $384.9 million over last year, driven by growth in fabric care, home care and fragrance ingredients. But fine fragrances sales dropped 6% on a reported basis and declined 8% on a currency neutral basis amid "ongoing challenges" in North America and weak demand in Latin America.
Sales in its flavors business jumped 13% to $377.7 million year over year. Currency neutral sales rose 14%, helped by high-single-digit increases in its beverage, dairy and savory categories and sales related to its acquisition of flavors company David Michael last year.
IFF manufactures flavors and fragrances for the food, beverage, personal care and household products industries.
The stock was flat in after-hours trading and closed up 1.07% to $119.16 today.
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