What's Going On With International Flavors & Fragrances Stock Today?

International Flavors & Fragrances, Inc. IFF shares are trading lower in the premarket session on Wednesday.

Yesterday, the company reported fourth-quarter results. The company registered quarterly adjusted earnings per share of 97 cents, beating the street view of 81 cents. Sales of $2.771 billion (+3% year over year) outpaced the analyst consensus estimate of $2.677 billion.

On a comparable basis, currency-neutral sales increased 6% versus the prior year period, led by broad-based growth in all divisions.

On a reported basis, Nourish Segment sales were $1.41 billion. On a comparable basis, currency neutral sales increased 4%, as strong double-digit growth in Flavors was partially offset by softness in Functional Ingredients.

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Health & Biosciences Segment sales were $553 million on a reported basis. On a comparable basis, currency neutral sales increased 6%, driven by growth in nearly all businesses led by double-digit performances in Home & Personal Care and Grain Processing.

Scent Segment sales were $579 million on a reported basis, while Pharma Solutions Segment sales were $228 million.

“In 2025, we’ll strategically increase our investment in R&D, commercial, capacity and technology as we aim to continue to strengthen IFF,” said CEO Erik Fyrwald. 

Cash and equivalents at the end of the quarter under review contracted to $469 million from $709 million in the prior year period.

Outlook: Sales are expected to range from $10.6 billion to $10.9 billion in the full year 2025 (street view: $11.30 billion). Adjusted operating EBITDA is expected to be between $2 billion and $2.15 billion.

The company expects comparable currency neutral sales growth to be between 1% to 4%, with volume growth in all businesses. 

International Flavors & Fragrances expects that foreign exchange will have an approximately 4% adverse impact to sales growth and an approximately 6% adverse impact to adjusted operating EBITDA growth in 2025 driven primarily by the Euro and certain other emerging market currencies. 

Price Action: IFF shares are trading lower by 2.33% to $84.45 premarket at last check Wednesday.

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