International Flavors & Fragrances(IFF)2025-02-18 21:27Financial Performance - Reported net sales for the full year 2024 were 2.21 billion, reflecting a 16% increase on a comparable basis due to strong volume growth and productivity gains[5] - Reported earnings per share (EPS) for the full year was 4.31 per diluted share[5] - For the fourth quarter, reported net sales were 471 million, with a comparable increase of 5% driven by volume growth and productivity gains[10] - Net income for the year ended December 31, 2024, was 2,563 million in 2023[42] - Reported (GAAP) Net Income for 2024 was 2,518 million in 2023[68] - Adjusted (Non-GAAP) Net Income for the year ended December 31, 2024, was 328 million in 2023, representing a growth of 96.34%[70] Segment Performance - The Nourish segment reported a 4% increase in comparable currency neutral sales, while Health & Biosciences and Scent segments saw increases of 6% and 7% respectively[9] - The Nourish segment reported net sales of 6,060 million in 2023, a decrease of about 3.1%[45] - Health & Biosciences segment sales increased by 6.3% to 2,081 million in 2023[84] - Scent segment sales grew to 2,277 million in 2023[84] - Pharma Solutions segment sales reached 945 million in 2023[84] - The company experienced a 12% increase in Pharma Solutions sales, with a remarkable 81% increase in segment adjusted operating EBITDA for Q4 2024[89] Future Projections - Full year 2025 sales are expected to be in the range of 10.9 billion, with adjusted operating EBITDA projected between 2.15 billion[12] - The company anticipates comparable currency neutral sales growth of 1% to 4% in 2025, with adjusted operating EBITDA expected to grow 5% to 10% year-over-year[13] - Foreign exchange is expected to have a 4% adverse impact on sales growth and a 6% adverse impact on adjusted operating EBITDA growth in 2025[14] - The Pharma Solutions segment is expected to contribute six months of results in 2025 following its divestiture, which is assumed to close on June 30, 2025[12] Expenses and Cash Flow - Research and development expenses increased by 8% to 157 million in Q4 2023[38] - Selling and administrative expenses rose by 16% to 444 million in Q4 2023[38] - Total net cash provided by operating activities decreased to 1,439 million in 2023, reflecting a decline of approximately 25.6%[42] - The company incurred approximately 1,787 million in 2023, reflecting an increase of 11.65%[65] - Net cash used in financing activities was 1,851 million in 2023, reflecting a reduction of approximately 13.2%[42] Balance Sheet - Total current assets increased to 6,293 million in 2023[40] - Total liabilities decreased to 15,578 million in 2023[40] - The company’s total assets were 30,978 million in 2023[40] - Total debt as of December 31, 2024, was 8,534 million after accounting for 46 million in Q4 2024, a significant improvement from a net loss of 130 million related to the termination of the pension plan in 2024[74] - The company incurred an impairment of goodwill of 2,623 million in 2023[45] - Business divestiture costs for Q4 2024 were approximately 38 million in Q4 2023, marking an increase of 47.37%[60] - For the year ended December 31, 2024, business divestiture and integration costs were approximately 5 million, respectively, compared to 59 million in 2023[73]