IFF daily chemical ingredients up 15%, food ingredients down 16%

International Flavors & Fragrances (IFF) reported third-quarter 2020 results on Nov. 9, with net sales of $1.27 billion, unchanged from the same period last year.

In the third quarter, IFF's Fragrances and Food Service Ingredients segments were most affected by the new crown epidemic, declining 14% excluding changes in foreign exchange rates and extending the reported decline to 15%. However, results in both segments have improved over the second quarter.

Other business segment results were solid, with a 3% increase excluding exchange rate changes, in line with the reported increase.

Cosmetics Flavors & Fragrances: perfume ingredients results up from Q2, still down year-on-year

Reported profit from the Japanese Flavors and Fragrances business rose 15%, and profit excluding exchange rate changes rose an even higher 20%, primarily due to higher sales volumes and improved productivity. Sales were up 4% to $502 million, in line with the increase excluding changes in foreign exchange rates.
Growth in the consumer flavors segment remained strong, with double-digit gains on a reported basis and excluding exchange rate changes. Nearly all subcategories posted growth.
The Perfume Ingredients segment improved significantly from the second quarter, but the segment's reported results and results excluding exchange rate changes declined by about 15-17%, both on a reported basis and excluding exchange rate changes, due to the temporary disruption of the consumer retail market by the new crown epidemic.

The cosmetic fragrances business returned to growth in the third quarter. The Cosmetics Active Ingredients segment, which led the rally, posted double-digit gains in both reported and excluding exchange rate changes.

Food Ingredients: sales down slightly, Food and Beverage Ingredients segment rebounded on a sequential basis
Reported profit in the Food Ingredients segment fell 16%, sales declined slightly by 2% to $765.2 million, and the decline narrowed to 1% excluding changes in foreign exchange rates.
The Food Ingredients segment rebounded from the second quarter, but remained under pressure, with double-digit declines in both reported results and results excluding foreign exchange changes.

The rest of the sector was solid, with a 1-3% increase excluding exchange rate changes and flat reported growth.

Regional: North America growth led, the Greater Asia business is still affected by the new crown impact

Geographically, North America saw double-digit growth, with growth in almost all categories.

Results in Europe, Africa and the Middle East were challenged, with the main pressure coming from the Savory Solutions segment.

Results in Latin America and Greater Asia were still impacted by the new crown epidemic in the third quarter.