IFF falls after projecting 'cautiously optimistic' Q4 2024 forecast

International Flavors & Fragrances

06/11/2024 17:10

** Shares of ingredients maker International Flavors &
Fragrances  IFF.N  down ~11% at $88.56 in afternoon trading
    ** Company expects to be "cautiously optimistic" in Q4 2024,
owing to the impact from seasonality and foreign exchange on
sales growth
    ** Expect Q4 sales volumes to be lower in the nourish
segment and some degradation of 50 to 90 basis points in
quarter-to-quarter margin - a company executive said in a
post-earnings call on Wednesday
    ** "We are cautious given a potential that customers could
adjust inventory at the end of the year which has happened in
the last few years" - CEO Erik Fyrwald
    ** On Tuesday, IFF posted Q3 adj. profit of $1.04 per share
missing analysts' estimates of $1.08 per share, according to
data compiled by LSEG
    ** Company, however, expects annual sales to be in the range
of $11.3 bln to $11.4 bln vs prior forecast of $11.1 bln to
$11.3 bln
    ** Posted Q3 sales of $2.93 bln topping analysts' ests. of
$2.83 bln
    ** Including session moves, stock up about 9% YTD
    

 (Reporting by Anuja Bharat Mistry in Bengaluru)
 ((AnujaBharat.Mistry@thomsonreuters.com))