International Flavors & Fragrances, Inc. · NYSE:IFF
International Flavors & Fragrances — Q4 2023 Earnings Presentation
14 slides from International Flavors & Fragrances's earnings presentation, Feb 21, 2024
Slide 1: Fourth Quarter & Full Year 2023 Earnings Conference Call
FOURTH QUARTER & FULL YEAR 2023 EARNINGS CONFERENCE CALL February 21, 2024
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 Erik Fyrwald 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 ____ 2023 Performance ____ 2024 Outlook ____ Q&A 5
Slide 6: Executive Summary
DELIVERING ON IFF COMMITMENTS EXECUTIVE SUMMARY Thrilled to be joining IFF at such an important & dynamic time for the company and the industry; Expect significant value creation ahead In the fourth quarter, IFF delivered solid results, including a sequential improvement in volume and double-digit c
Slide 7: Dividend Policy Update
S T R E N G T H E N I N G B AL AN C E S H E E T DIVIDEND POLICY UPDATE Accelerating Capital Structure Improvement o Investment grade status remains priority o Working towards 3x net debt to credit adjusted EBITDA1 target o Improved cash flow and financial flexibility Divestiture proceeds will be use
Slide 8: Consolidated Results
Q4 2023 CONSOLIDATED RESULTS Reported Comparable In millions / % of sales 2022 2023 Comparable currency neutral sales1 2 increased % Δ CN % Δ¹ ² 1% as strong growth in Scent was mitigated by volume pressure in Nourish & Pharma ____ Revenue² $2,844 $2,703 (5)% 1% Volume trends continue to improve seq
Slide 9: Profitability Performance
Q4 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 EBITDA¹ ²:+17% $461 In Millions $441 Savory Solutions FSI Q4 2022 Portfolio Volume / Net Price / Net Q4 2023 Currency Q4 2023
Slide 10: Segment Performance
Q4 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. 4Q 22) ¹ ² 4Q 22) ¹ ² $1.4 billion $165 million • Strong growth in Flavors offset by softness in Functional Ingredients Nourish (3)% +3% • Prof
Slide 11: Cash Flow & Leverage
FY 2023 CASH FLOW & LEVERAGE Cash Flow Leverage Cash flow from operations totaled $1.44 billion Cash and cash equivalents finished at $729 million, which driven by strong improvement in inventory levels includes $26 million currently in assets held for sale ____ ____ Gross debt totaled $10,096 milli
Slide 12: Consolidated Outlook
FY 2024 CONSOLIDATED OUTLOOK In millions or as % of sales FY 2024¹ Sequential improvement continues, although visibility of degree and pace of recovery unclear; Cautiously optimistic on volume outlook Revenue $10.8B – $11.1B ____ Pricing expected to decline, with reductions isolated in lower value V
Slide 13: Summary
SUMMARY Q4 2023 results were solid, with top-and-bottom-line comparable currency neutral profit growth & significant free cash flow generation In context of continued macroeconomic uncertainty, targeting improved top & bottom-line performance in 2024 Updated quarterly dividend policy to enable faste
Slide 14: iF f
iF f Where science & creativity meet
International Flavors & Fragrances — Q4 2023 Earnings Presentation on 6ix