IFF reports big rise in Q2 sales and profits

The New Jersey-based company said that sales increased by 17 percent to $666m, with the increase remaining the same in terms of local currencies as currency translations.

Net income increased by an impressive 40 percent to €67.15m, a figure that reflected lower restructuring costs, income tax and lower interest payments.

Sales for the first half of the year were also up by 17 percent to $1.32bn, while net income increased 37 percent to $130.9m.

Favorable comparisons​

Although CEO Doug Tough said he was pleased that the ‘strong momentum’ from Q1 had been carried into the second quarter, he did also draw attention to the fact that the comparisons were against a weak performance during the first half of 2009.

The fragrance part of the business led the increases, with sales increasing by 23 percent in local currences during the quarter to reach $361.47m, while the first half results increased by 20.8 percent to $715.22m.

The company said that in particular the Fine Fragrance and Beauty Care divisions both registered ‘very strong’ double-digit sales increases during the quarter, while overall results for the division were boosted by higher volumes, restorcking and favorable comparisons.

Hair care and toiletries lead the way​

In the Beauty Care division, sales of hair care and toiletry fragrances were singled out as leading the way.

In the Flavors division, second quarter local currency sales increased by 11 percent to €304.23m, while for the full six months they increeased by 12.9 percent to $604.49m.

However, looking ahead to the second half of 2010, Tough did acknowledge that results for the next two quarters might not be so favorable on account of stronger comparisons for the second half of 2009, combined with the fact that the benefits of de-stocking would be reduced.