Becart
International Flavors & Fragrances (NYSE:IFF) -18.8% post-market Monday after missing estimates for Q2 adjusted earnings and revenues, and slashing its full-year sales guidance on weak demand and sharply higher inventory costs.
Q2 net income fell to $27M, or $0.11/share, from $107M, or $0.43/share, in the year-ago quarter, and revenues slumped to $2.93B from $3.31B, with sales in the food products segment falling 14% Y/Y to $1.56B and sales in the health and biosciences unit dropping 21.5% to $522M; analysts had forecast revenues of $1.68B for foods and $550.5M in health and biosciences.
“The continued customer destocking and volume pressures in the second quarter reflect the broader macroeconomic challenges facing our industry, and for IFF,” CEO Frank Clyburn said.
Citing the “expectation that volumes in the second half of 2023 will not recover as previously expected, driven particularly by continued customer destocking,” IFF (IFF) cut its full-year sales guidance to $11.3B-$11.6B, down from a prior outlook for ~$12.3B and below the $12.16B analyst consensus estimate.
The company also said it expects higher inventory costs for the full year of ~$180M, up from a previous estimate of ~$100M.
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