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Investing.com -- International Flavors & Fragrances Inc (NYSE:IFF) reported better-than-expected third quarter results on Tuesday, with both earnings and revenue surpassing analyst expectations, sending shares up 2.8% in after-hours trading.
The flavor and fragrance maker posted adjusted earnings per share of $1.05 for the third quarter, exceeding the analyst estimate of $1.02. Revenue came in at $2.69 billion, above the consensus estimate of $2.63 billion, though this represented an 8% decrease from the same period last year. On a comparable currency neutral basis, sales were flat against a strong 9% YoY comparable.
"Our third quarter results demonstrate continued execution in a tough operating environment," said Erik Fyrwald, CEO of IFF. "Sales momentum in Scent and Taste remain solid, supported by strong new win contributions. This performance helped offset short-term pressures in Health and Biosciences."
The company’s Scent segment was a standout performer, with comparable currency neutral sales increasing 5%, driven by Fine Fragrance which grew 20% compared to the prior year. The Taste segment saw a 2% increase in comparable currency neutral sales, while Health & Biosciences remained flat and Food Ingredients declined 3%.
Profitability improved with adjusted operating EBITDA reaching $519 million. On a comparable currency neutral basis, adjusted operating EBITDA grew 7% versus the prior-year period, primarily due to productivity gains and favorable pricing.
IFF reiterated its full-year 2025 guidance, expecting sales between $10.6 billion and $10.9 billion, compared to analyst consensus of $10.808 billion. The company anticipates comparable currency neutral sales growth at the lower end of its 1% to 4% range, and comparable currency neutral adjusted operating EBITDA growth near the mid-point of its 5% to 10% range.
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