International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Q3 2023 Earnings Presentation
13 slides from International Flavors & Fragrances's earnings presentation, Nov 7, 2023
Slide 1: Third Quarter 2023 Earnings Conference Call
THIRD QUARTER 2023 EARNINGS CONFERENCE CALL November 7, 2023
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Statements in this presentation, which are not historical facts or information, are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on management’s current assumptions, estimates a
Slide 3: Non-GAAP Financials
NON-GAAP FINANCIALS We provide in this presentation non-GAAP financial measures, including: (i) comparable currency neutral sales; (ii) adjusted operating EBITDA and comparable currency neutral adjusted operating EBITDA; (iii) adjusted operating EBITDA margin; (iv) adjusted EPS ex amortization; (v)
Slide 4: Today's Speakers
TODAY’S SPEAKERS Frank Clyburn Glenn Richter Michael DeVeau Executive Vice President, Senior Vice President, Chief Executive Officer Chief Financial & Business Corporate Finance & Transformation Officer Investor Relations 4
Slide 5: Agenda
AGENDA Executive Summary ____ Financial Results ____ Full Year Outlook ____ Q&A 5
Slide 6: Executive Summary: IFF Improving Momentum
IMPROVING MOMENTUM EXECUTIVE SUMMARY Delivered higher than expected sales and EBITDA in Q3 2023 Volumes improved sequentially, with improvements in nearly all categories IFF: Favorable price to inflation & productivity supported adjusted operating A leader EBITDA; Working capital improvements yielde
Slide 7: Q3 2023 Consolidated Results
Q3 2023 CONSOLIDATED RESULTS In millions / % of sales 2022 2023 C H AN G E Comparable currency neutral sales1 2 declined 3% as growth in Scent and H&B was more than offset by softness in Nourish and Pharma Solutions ____ Revenue² $3,063 $2,820 (8)% Volume improved sequentially; Excluding Functional
Slide 8: Profitability Performance: Adjusted Operating EBITDA Reconciliation
Q3 2023 PROFITABILITY PERFORMANCE AD J U S T E D O P E R AT I N G E B I T D A¹ R E C O N C I L I AT I O N Year-over-year change Comparable Currency Neutral Adjusted Operating EBITDA ex $612 Absorption¹ ²: (6)% $506 In Millions Savory Solutions Divestiture FSI Comp CN Divestiture Adjusted Operating E
Slide 9: Q3 2023 Segment Performance
Q3 2023 SEGMENT PERFORMANCE NET ADJUSTED SALES O P E R AT I N G EBITDA¹ SEGMENT (Comparable (Comparable HIGHLIGHTS currency neutral currency neutral vs. vs. 3Q 22) ¹ ² 3Q 22) ¹ ² $1.4 billion $178 million • Growth in Flavors more than offset by weakness in Functional Ingredients Nourish • Price incr
Slide 10: Cash Flow & Leverage
9M YTD 2023 CASH FLOW & LEVERAGE Cash Flow Leverage Cash flow from operations totaled $795 million Cash and cash equivalents finished at $652 million, which driven by strong improvement in inventory levels includes $23 million currently in assets held for sale ____ ____ Gross debt totaled $10,325 mi
Slide 11: Consolidated Outlook FY 2023
FY 2023 CONSOLIDATED OUTLOOK In millions or as % of sales Guidance FY 2023 guidance reflects macroeconomic challenges impacting industry, including temporary destocking ____ Revenue $11.3B – $11.6B Reconfirmed sales guidance, with an improving trend across most categories in Q4; Pricing consistent w
Slide 12: Summary
SUMMARY Delivered higher than expected sales and EBITDA in Q3 2023 driven by improved volume, favorable price to inflation & productivity benefits Working capital improvements – particularly, the strong execution of our inventory reduction program – has yielded strong free cash flow Reconfirmed FY 2
Slide 13: Where science & creativity meet
iF f Where science & creativity meet
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