Bulletin: International Flavors&Fragrances Inc.'s Third Quarter Mostly In Line With Expectations; Guidance Affirmed

NEW YORK (S&P Global Ratings) Nov. 6, 2019--S&P Global Ratings said today that International Flavors&Fragrances Inc.'s (IFF; BBB/Stable/A-2) operating results for the third fiscal quarter, ended Sept. 30, 2019, were mostly in line with our expectations. We expect leverage just below the 4x area by year-end 2019. IFF reported revenue growth of almost 2% year over year, driven by the Scent segment and earnings stabilization at recently acquired Frutarom, which increased about 5%. The Taste segment continues to struggle (declining 2% year over year) due to a strong prior-year comparison and decreased volumes from multinational customers in Europe. We expect that to rebound in the fourth quarter as inventory destocking ends. The company also faces unfavorable foreign currency

...NEW YORK (S&P Global Ratings) Nov. 6, 2019--S&P Global Ratings said today that International Flavors & Fragrances Inc.'s (IFF; ###/Stable/A-2) operating results for the third fiscal quarter, ended Sept. 30, 2019, were mostly in line with our expectations. We expect leverage just below the 4x area by year-end 2019. IFF reported revenue growth of almost 2% year over year, driven by the Scent segment and earnings stabilization at recently acquired Frutarom, which increased about 5%. The Taste segment continues to struggle (declining 2% year over year) due to a strong prior-year comparison and decreased volumes from multinational customers in Europe. We expect that to rebound in the fourth quarter as inventory destocking ends. The company also faces unfavorable foreign currency challenges and raw material cost inflation, which will likely continue into the fourth quarter. However, we expect performance to improve in the fourth quarter as IFF laps some transitory costs, namely CitraSource at...

Bulletin