Q2 2024 International Flavors & Fragrances Inc Earnings Call Transcript
Key Points
- International Flavors & Fragrances Inc (IFF) reported a 7% increase in revenue on a comparable currency-neutral basis, reaching nearly $2.9 billion.
- Adjusted operating EBITDA increased by 22%, driven by volume growth and productivity initiatives.
- The company raised its full-year sales and adjusted operating EBITDA guidance, reflecting strong performance in the first half of the year.
- Significant progress in the strategic refresh, focusing on innovation, customer success, and operational excellence.
- Strong performance in key segments: Scent, Health & Biosciences, and Nourish, with notable volume growth and profitability improvements.
- IFF remains cautious about the economic outlook for the remainder of 2024, citing mixed results from CPG companies and economic indicators.
- Functional Ingredients sales declined modestly due to lower pricing, despite high single-digit volume growth.
- The company faces challenges in improving employee engagement and navigating a complex and fast-moving environment.
- IFF's Pharma solutions segment experienced a decline in profitability due to unfavorable mix and one-time items.
- The company is investing significantly in CapEx and OpEx, which may impact short-term free cash flow and profitability.
At this time, I would like to welcome everyone to the IFF second quarter earnings conference call. (Operator Instructions) I would now like to introduce Michael DeVeau, Head of Investor Relations. You may begin.
Thank you. Good morning, good afternoon, and good evening everyone. Welcome to IFF's second quarter 2024 conference call. Yesterday afternoon, we issued a press release announcing our financial results. A copy of the release can be found on our IR website at ir.iff.com.
Please note that this call is being recorded live and will be available for replay. During the call, we will making forward-looking statements about the company's performance and business outlook. These statements are based on how we see things today and contain elements of uncertainty. For additional information concerning the factors that could cause actual results to differ materially, please refer to our cautionary statement and risk factors contained
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