(Reuters) -International Flavors & Fragrances beat Wall Street expectations for first-quarter profit on Tuesday, benefiting from prior price increases as well as sustained demand for its fragrance and wellness solutions.
WHY IT’S IMPORTANT
Steady demand in IFF’s pharma and health solutions segment has helped it counterbalance challenges in its food ingredients division, as consumers maintained their focus on health and wellness despite a difficult macroeconomic environment.
Higher product prices and easing commodity costs have further mitigated pressures from manufacturing and logistics.
KEY QUOTES
“As we navigate the heightened macroeconomic uncertainty in today’s environment, we remain focused on what we can control — collaborating with our customers to drive growth, investing in innovation and delivering increased productivity,” CEO Erik Fyrwald said.
“We are maintaining our full-year financial guidance ranges but recognize that the uncertain environment has potential for more challenges.”
BY THE NUMBERS
International Flavors & Fragrances posted an adjusted profit of $1.20 per share for the first quarter, compared with analysts’ average estimate of $1.14 per share, according to data compiled by LSEG.
The company, which provides ingredients and flavor solutions for food and beverage products, reiterated its annual sales forecast of $10.6 billion to $10.9 billion.
IFF said that the outlook includes the impact of current tariff exposure and does not account for potential recessionary pressures that could arise from recent shifts in trade policy.
The company’s quarterly net sales fell 2% to $2.84 billion from last year. Analysts were expecting, on average, $2.83 billion.
(Reporting by Aatrayee Chatterjee in Bengaluru; Editing by Leroy Leo and Alan Barona)
