Int'l Flavors & Fragrances (IFF) Reports Prelim. 4Q Revenue Results Above Consensus

January 26, 2021 6:38 AM EST

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IFF (NYSE: IFF), a leading innovator of taste, scent, and nutrition & ingredients, today announced preliminary, unaudited financial results for the quarter ended December 31, 2020.

“In collaboration with DuPont’s financial announcement today, and in connection with the Exchange Offer related to our combination with DuPont Nutrition & Biosciences, we are providing preliminary financial results for the fourth quarter and full year 2020,” said IFF Chairman and CEO Andreas Fibig. “We expect to finish 2020 with results coming in ahead of our expectations despite continued challenges and complexity of the pandemic. This performance is a direct testament to the diversity of our portfolio, the essential nature of our products, and the resiliency of our global teams to continuously deliver for our customers.”

Mr. Fibig continued, “With the completion of our merger with DuPont N&B now just days away, we continue to see multiple paths to strong value creation for all our stakeholders. Upon closing the transaction, IFF will be a stronger company, well-positioned to deliver meaningful synergies as we execute on our core business objectives and strengthen our partnerships with customers worldwide. We are laser-focused on execution to build strong business momentum and successfully integrate our two great companies to deliver our financial aspirations and maximize shareholder value.”

Preliminary Summary of Full Year 2020 Results

The results in this section reflect preliminary expectations of financial results for the fourth quarter and full year ended December 31, 2020. The Company and its auditors have yet to complete their financial closing and audit procedures and actual results are therefore subject to change. Schedules at the end of this release contain reconciliations of reported GAAP to non-GAAP metrics.

Based on the information currently available, IFF estimates the following preliminary results for the fourth quarter and full year 2020:

  • Net sales for the fourth quarter of 2020 are expected to be approximately $1,270 million as compared to $1,284 million for the same period in 2019. Net sales on a currency neutral basis are expected to increase approximately 2% excluding approximately a 4-percentage point impact of the additional week of sales in the prior year period. Total net sales for the full year 2020 are expected to be approximately $5,084 million.
  • Reported operating profit1 for the fourth quarter of 2020 is expected to be approximately $100 million, and full year reported operating profit is expected to be approximately $566 million. Adjusted operating profit excluding amortization for the fourth quarter of 2020 is expected to be approximately $203 million, and full year 2020 adjusted operating profit excluding amortization is expected to be approximately $922 million.

Fourth Quarter and Full Year 2020 Earnings Call Information

IFF also announced that it will release its fourth quarter & full year 2020 earnings results following the market close on Wednesday, February 10, 2021. The management team will host a live webcast on Thursday, February 11, 2021 at 10:00 a.m. ET to discuss results and outlook with the investor community.

Investors may access the live webcast and accompanying slide presentation on the Company's website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available for replay.

International Flavors & Fragrances Inc.

GAAP to Non-GAAP Reconciliation

(Unaudited)

Reconciliation of Operating Profit ex. Amortization

Fourth Quarter

2020

Reported (GAAP)

$ 100,000

Frutarom Integration Related Costs

1,000

Restructuring and Other Charges, net

9,000

Losses (Gains) on Sale of Assets

2,200

Employee Separation Costs

2,800

Frutarom Acquisition Related Costs

100

Compliance Review & Legal Defense Costs

1,700

N&B Transaction Related Costs

3,700

N&B Integration Related Costs

34,700

Amortization of Acquisition related Intangible Assets

47,800

Adjusted (Non-GAAP) ex. Amortization

$ 203,000

Reconciliation of Operating Profit ex. Amortization

Year Ended December 31,

2020

Reported (GAAP)

$ 566,000

Frutarom Integration Related Costs

9,900

Restructuring and Other Charges, net

17,300

Losses (Gains) on Sale of Assets

3,700

Employee Separation Costs

2,800

Frutarom Acquisition Related Costs

1,400

Compliance Review & Legal Defense Costs

3,200

N&B Transaction Related Costs

28,100

N&B Integration Related Costs

96,600

Amortization of Acquisition related Intangible Assets

193,000

Adjusted (Non-GAAP) ex. Amortization

$ 922,000

________________________
1 This amount is subject to change as the Company completes its normal annual closing and review processes, which include items such as actuarial, various valuation considerations, and other normal completion activities, including the audit procedures thereon.



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