IFF lifts annual sales view, beats quarterly sales on steady demand
Nov 5 (Reuters) -International Flavors & Fragrances IFF.N raised its annual sales forecast after beating quarterly sales on Tuesday, driven by benefits from consistent volume growth across all its segments.
The company saw an uptick in demand for various categories, including fragrances and health products, as lower gasoline prices encouraged discretionary spending, further boosting sales at packaged food companies.
IFF reported high-single-digit growth in quarterly volumes across all its businesses.
It expects full-year volumes to rise in the range of 5% to 6%, compared with the prior forecast of a 3% to 5% rise.
Sales in IFF's nourish segment, a major revenue contributor that provides ingredients and flavor solutions for food and beverage products, saw sales rise 3% in the reported quarter, compared with a 15% drop a year ago.
The company expects annual sales to be in the range of $11.3 billion to $11.4 billion, compared to its prior forecast range of $11.1 billion to $11.3 billion.
For the third quarter, the company posted net sales of $2.93 billion, compared with analysts' average estimate of $2.83 billion, according to data compiled by LSEG.
Shares of the company were marginally down at $99.06 in extended trading after it missed analysts' estimates for quarterly adjusted profit.
The company posted a third-quarter adjusted profit of $1.04 per share for the quarter ended Sept. 30, compared with estimates of $1.08 per share.
Last month, the company sold its nitrocellulose business in Germany, which serves customers in coatings and printing inks along with the industrial park where it is located, to the Czech defence and industrial firm Czechoslovak Group.
Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Mohammed Safi Shamsi
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