IFF Releases Second Quarter Results, Aligned With Expectations
International Flavors and Fragrances (IFF)
reported its second quarter net sales reached
$842.9 million, a 6% increase from the second
quarter in 2016.
Among some of the attributing factors for the
growth included strong sales in sweet and savory
modulation, the launch of fragrance ingredient
Veraspice and double-digits growth in the Middle
East and Africa markets.
In addition, the report indicated specific growth
among the flavor and fragrance segments:
Fragrances Business Unit
• Sales increased 4%, or $14.6 million, to $428.5
million in the second quarter, while currency
neutral sales improved by 5%.
• Fragrance ingredients grew 7% during the
quarter, led by double-digit growth in EAME and
Latin America, along with double-digit growth in
cosmetic active ingredients.
• Fine fragrances improved 10% and 11% on a currency neutral basis, attributed to the acquisition
of flavor resources.
• Consumer fragrance improved by 1%, driven by
the acquisition of fragrance resource and low
growth in the fabric care and home care category.
• Profits decreased in the fragrance segment by 3%
due to unfavorable prices and weaker sales.
Flavors Business Unit
• Sales increased 9%, or $34.8 million, to $414.3
million, while currency neutral sales grew 11%.
• EAME increased 2% on a reported basis and 9%
on a currency neutral basis, led by growth in
Western, Central, Southern and Eastern Europe
regions and the acquisition of David Michael.
• North America grew 30% related to the acquisition of PowderPure and David Michael.
• Latin America increased 13% and 11% on a currency neutral basis, led by double-digit growth in
Colombia and Argentina.
• Flavors segment profit grew 11% on a reported
basis and 14% on a currency neutral basis. The
growth is attributed to acquisitions, volume
growth and productivity initiatives.
“Our second quarter results finished in line with
our expectations, with improved trends across
several of our key financial metrics,” said IFF
chairman and CEO Andreas Fibig. “We continued
to advance our strategy as we drove innovation,
executed our productivity programs, and benefited
from acquisitions. These improvements reflect
significant efforts across our entire organization as
we implement our long-term strategy and generate
strong returns for our shareholders.”
Blue Pacific Flavors Announces $1.5 Million Lab Expansion
Blue Pacific Flavors, an organic flavor and ingredient manufacturer, invested $1.5 million into a new
laboratory. The flavor creation and culinary innovation center will be double the size of the previous
lab—making it over 3,000 square feet.
“Our vision was to build a world-class innovation
center to be the core of our organization,” said Blue
Pacific Flavors CEO, Donald Wilkes. “It is a reflection
of the food manufacturing renaissance taking place
in southern California and our commitment to meet
the needs of a growing organic flavors business.”
The new facility allows for a collaborative space to
create clean-label, plant-based, natural and organic
food and beverage applications, according to the
company. In addition to the expansion, Blue Pacific
has added staff in regulatory and quality control.
There are also plans to hire additional research and