IFF beats quarterly estimates on improving volume growth
May 6 (Reuters) -Chemicals company International Flavors & Fragrances IFF.N beat market expectations for first-quarter sales and profit on Monday, helped by steady demand for its pricey product categories including scents as well as food ingredients.
Shares of the company were up about 4% in aftermarket trading.
Demand for IFF's products held as consumers stretched their budgets to shop for food ingredients to prepare more meals at home, which led to consumer goods manufacturers restocking their inventory.
Benefits from significant price hikes taken in the past quarters helped IFF in countering still-high labor and manufacturing costs.
International Flavors & Fragrances posted adjusted profit of $1.13 per share for the quarter ended March 31, compared with analysts' estimate of 87 cents per share, according to LSEG data.
The company further gained from the divestiture of its Savory Solutions and cosmetic ingredients units as well as its pharma unit, which IFF said it would sell to French plant-based ingredients maker Roquette.
The company's quarterly volumes grew mid-single digits while improving nearly across all businesses.
The company now expects annual sales to be at the high end of its prior forecast range of $10.8 billion to $11.1 billion. It also sees full-year volumes at the high end of its prior expectation of flat to 3% rise.
IFF's fiscal 2024 pricing is expected to increase about 1%, compared with its prior forecast of a decline of 2.5%.
For the first quarter, the company posted net sales of $2.90 billion, compared with analysts' average estimate of $2.78 billion.
The company also said its finance chief, Glenn Richter has planned to retire in December 31, 2024.
Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Alan Barona
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