IFF’s 2Q Results
"We are pleased with our second quarter performance in light of our challenging 17% local currency sales growth comparison and the significant increases in raw material costs," said Doug Tough, chairman and chief executive officer. "The diversification of our product and geographic portfolio provided us the ability to deliver solid local currency sales growth. From a profitability perspective, our initial pricing actions and continued cost discipline helped mitigate raw material pressures to drive double-digit adjusted operating profit and adjusted EPS growth."
Tough continued, "While our first half performance was strong, it is worth noting that we will continue to face strong year-over-year comparables and elevated levels of raw material costs over the balance of the year. Nonetheless, we believe that by focusing on our strategy -- leveraging our geographic reach, strengthening innovation and maximizing our portfolio -- we can achieve our long-term targets of four to six percent local currency sales growth, seven to nine percent operating profit growth, and 10% plus EPS growth for the full year 2011."
SECOND QUARTER 2011 - Flavor Business Unit
Local currency sales in the second quarter increased 8% over the prior year period. Overall growth can once again be attributed to a double-digit performance in the emerging markets where countries such as Brazil, Russia, India and China combined grew in excess of 20%. In the developed markets, performance was strongest in North America as health and wellness initiatives continued to drive results. From a category perspective, growth was achieved across the entire portfolio, led by a double-digit increase in Savory and high single-digit increases in Beverage and Confectionery.
Operating profit increased 10%, or $6 million, to $71 million in the second quarter as accelerated sales growth and continued cost discipline drove results. Operating profit margin declined 60 bps versus the prior year period to 20.6% as pricing initiatives lagged raw material costs as expected.
From the August 9, 2011,Prepared Foods' Daily News.