IFF Sees FY23 Revenue $11.3B-$11.6B Vs $12.15B Est.; Previous FY23 Estimate Given By Co Was $12.3B
Portfolio Pulse from Benzinga Newsdesk
IFF has revised its FY23 revenue guidance downwards from $12.3B to $11.3B-$11.6B, citing continued customer destocking and a significant decline in Functional Ingredients. The company also expects its full year 2023 adjusted operating EBITDA to be in the range of $1.85B-$2.0B, down from the previous estimate of $2.34B. The revised EBITDA guidance includes approximately $180M of higher manufacturing absorption costs related to the company's inventory reduction program. Foreign exchange is expected to have a 2% adverse impact on sales growth and a 6% adverse impact on EBITDA growth in 2023.
August 07, 2023 | 8:20 pm
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IFF has lowered its FY23 revenue and EBITDA guidance due to continued customer destocking and a decline in Functional Ingredients. This could negatively impact the company's stock price in the short term.
Companies often see their stock prices fall when they lower their earnings guidance, as this can indicate that they are not performing as well as expected. In this case, IFF's announcement that it expects lower revenues and EBITDA in FY23 due to continued customer destocking and a decline in Functional Ingredients could lead investors to sell their shares, driving the price down.
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