International Flavors & Fragrances Expects 2024 Volume To Be 0%-3% In Light Of Continued Macroeconomic Uncertainty; Sales Of $10.8B-$11.1B, Est $11.414B
Portfolio Pulse from Benzinga Newsdesk
International Flavors & Fragrances (IFF) projects 2024 volume growth of 0%-3% amid macroeconomic uncertainty, with sales forecasted between $10.8B-$11.1B, below the estimated $11.414B. The company anticipates a 2.5% decline in pricing, mainly due to lower input costs and competitive dynamics in Functional and Fragrance Ingredients. However, adjusted operating EBITDA for 2024 is expected to range from $1.9B to $2.1B, with a 3%-11% growth in comparable currency neutral adjusted operating EBITDA, attributed to volume increases and productivity improvements.
February 20, 2024 | 9:26 pm
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IFF expects 2024 sales to fall short of estimates with a slight volume growth and a pricing decline, but anticipates adjusted operating EBITDA growth due to productivity gains.
The mixed forecast from IFF, with lower than expected sales but an optimistic EBITDA growth outlook, presents a neutral to slightly positive short-term impact. The anticipated decline in pricing could pressure revenues, but the expected EBITDA growth, driven by productivity gains, could offset concerns and support the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100