IFF released its financial results for the first quarter ending March 31, 2024. During this period, reported net sales amounted to $2.90 billion, marking a 4% decrease compared to the same period last year. However, on a comparable basis adjusted for currency fluctuations, sales increased by 5% year-over-year, driven by growth in the Scent, Health & Biosciences, and Nourish segments. Volume experienced mid-single-digit growth and showed sequential improvement across most business areas.
Income before taxes on a reported basis for the first quarter stood at $115 million. Adjusted operating EBITDA reached $578 million for the same period. On a comparable basis, adjusted operating EBITDA saw a notable 20% improvement compared to the prior-year period, attributed to volume growth and gains in productivity. Reported earnings per share (EPS) for the first quarter were $0.23. Adjusted EPS, excluding amortization, amounted to $1.13 per diluted share.
“We have started the year well, with good results across the majority of our business,” said IFF CEO Erik Fyrwald. “In the first quarter, we delivered volume growth and productivity gains, which resulted in solid top-and-bottom-line results on a comparable basis. We are off to a good start, yet recognize that it is still early in the year and uncertainty remains. Based on our performance to date and our outlook for the balance of the year, we believe results will likely trend towards the higher end of our previously announced guidance ranges.”
In the Nourish segment, first-quarter sales amounted to $1.50 billion on a reported basis. However, on a comparable basis adjusted for currency fluctuations, sales increased by 3%. This growth was primarily driven by robust performance in Flavors, although it was partially offset by a decline in Functional Ingredients. While the Functional Ingredients segment showed sequential improvement and returned to volume growth, it experienced a low-single-digit decline compared to the same period last year.
In the Health & Biosciences segment, first-quarter sales reached $531 million on a reported basis. However, when adjusted for currency fluctuations, sales increased by 6% on a comparable basis. This growth was fueled by positive performance across various sectors including Cultures & Food Enzymes, Grain Processing, Home & Personal Care, and Animal Nutrition.
In the Scent segment, first-quarter sales amounted to $645 million on a reported basis. However, when adjusted for currency fluctuations, sales surged by 16% on a comparable basis. This growth was primarily driven by robust double-digit expansion in Consumer Fragrance and a mid-single-digit increase in Fine Fragrance. Both segments contributed to the growth through a balanced combination of volume and price improvements.
