IFF Q3 Report 2023

Third Quarter 2023 Consolidated Financial Results

• Reported net sales for the third quarter were $2.82 billion, a decrease of 8% versus the prior-year period. On a comparable basis2, currency neutral sales1 decreased 3% versus the prior-year period, as growth in Scent and Health & Biosciences was more than offset by softness in Nourish and Pharma Solutions. Volume performance improved sequentially across nearly all businesses, yet remained challenged versus the year-ago period, and pricing continued to be strong.
• Income before taxes on a reported basis for the third quarter was $59 million. Adjusted operating EBITDA1 for the third quarter was $506 million. On a comparable basis2, currency neutral adjusted operating EBITDA1 declined 10% versus the prior-year period, as pricing and productivity gains were more than offset by lower volumes and unfavorable manufacturing absorption related to the Company’s inventory improvement program.
• Reported earnings per share (EPS) for the third quarter was $0.10. Adjusted EPS excluding amortization1 was $0.89 per diluted share.
• Cash flows from operations at the end of the third quarter was $795 million, and free cash flow defined as cash flows from operations less capital expenditures totaled $405 million. This cash flow performance was driven primarily by a strong improvement in inventories, and led by a greater than $600 million reduction in inventory versus year-end 2022. Total debt to trailing twelve months net income at the end of the third quarter was 573.6x. Net debt to credit adjusted EBITDA1 at the end of the third quarter was 4.6x.