Improving business trends for IFF improve Q1 outlook
Flavour and fragrance house enjoys better than anticipated results for Q1
Flavour and fragrance house IFF says improving business trends are driving better than anticipated financial results for the first quarter of 2010.
The company says local currency sales are trending to low double-digit growth as all categories, including fine fragrance, are showing significant improvements versus the year-ago period. Trends in the emerging markets are said to be continuing strongly, particularly in Greater Asia where every category is experiencing double-digit growth. The effects on margin have been positive and as a result, adjusted quarterly EPS is expected to be near record levels.
"IFF continues to execute a successful strategy that enables us to generate strong financial results," says Doug Tough, chairman and ceo. "We are seeing a significant improvement in our business segments, including double-digit growth in the fine fragrance category. While we continue to see strong commercial performance relative to new customer business, a portion of this improvement can be attributed to favorable comparisons versus the year ago period as well as some elements of customer restocking.
“We continue to be mindful that this may well be an isolated event, as economic conditions remain fluid. As a result, we plan to monitor our performance as we look to make targeted investments to strengthen our marketplace position throughout the balance of the year."
