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Earnings Review and Free Research Report: International Flavors & Fragrances’ Revenue Grew 6%; Currency Neutral Adjusted EPS Improved 8%

Research Desk Line-up: Gulf Resources Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 29, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on International Flavors & Fragrances Inc. (NYSE: IFF) ("IF&F"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=IFF, following the Company's release of its second quarter financial results on August 08, 2017. The ingredients producer for food, cosmetics, and consumer products industries exceeded earnings estimate and reiterated its outlook for 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Specialty Chemicals industry. Pro-TD has currently selected Gulf Resources, Inc. (NASDAQ: GURE) for due-diligence and potential coverage as the Company announced on August 11, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Gulf Resources when we publish it.

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At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on IFF; also brushing on GURE. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=IFF

http://protraderdaily.com/optin/?symbol=GURE

Earnings Reviewed

IF&F's net sales for the second quarter totaled $842.9 million, reflecting an increase of 6% from net sales of $793.5 million for Q2 2016. Excluding the impact of foreign exchange, the Company's currency neutral sales increased 8% on a y-o-y basis, including approximately six percentage points related to recent acquisitions. IF&F's sales came in marginally below analysts' estimates of $843.3 million.

For Q2 2017, IF&F reported operating profit of $159.1 million versus $164.7 million reported in Q2 2016. The Company's currency neutral adjusted operating profit grew 6% to $171.8 million, principally driven by acquisitions, volume growth, and productivity initiatives.

IF&F posted earnings per share (EPS) of $1.38 per diluted share for Q2 2017 versus $1.46 per diluted share reported in Q2 2016. Excluding the impact of foreign exchange and non-recurring items that affect comparability, the Company's currency neutral adjusted EPS improved 8% to $1.50 per diluted share and topped Wall Street's estimates of $1.44 per share.

IF&F's Segment Results

Fragrances Business Unit - For Q2 2017, the Fragrances Business Unit sales increased 4% to $428.54 million compared to $413.97 million in Q2 2016, while currency neutral sales improved 5%. This increase was driven by the benefit of acquisitions as well as growth in Fine Fragrances, Fabric Care, and Fragrance Ingredients.

The segment's Fine Fragrances improved 10% on a reported basis and 11% on a currency neutral basis, inclusive of additional sales related to the acquisition of Fragrance Resources. In the reported quarter, the segment's Consumer Fragrances growth remained flat on a reported basis, while it improved 1% on a currency neutral basis, primarily due to additional sales attributed to the acquisition of Fragrance Resources and low-single-digit improvements in Fabric Care and Home Care.

During Q2 2017, the segment's Fragrance Ingredients division grew 7% on a reported basis and 9% on a currency neutral basis, driven by double-digit growth in European–African–Middle Eastern region (EAME) and Latin America and double-digit growth in cosmetic active ingredients. The segment's profit decreased 3% on a reported basis and currency neutral basis.

Flavors Business Unit - For Q2 2017, the Flavors Business Unit sales grew 9% to $414.32 million compared to $379.50 million, while currency neutral sales grew 11%. The growth in sales was attributed to expansion coming from three of the four regions as well as a strong contribution of sales related to the David Michael's acquisition.

The segment's profit grew 11% on a reported basis and 14% on a currency neutral basis, driven by the contribution of acquisitions, the benefits from productivity initiatives, and volume growth.

Cash Matters

IF&F's operating cash flow was $58 million on a year-to-date basis in Q2 2017 compared to $172 million in the comparable 2016 period. The decline was primarily attributed to the ZoomEssense litigation settlement, which was approximately 56 million, while it was also impacted by lower net income, higher incentive compensation payments compared to the year ago same period.

In H1 2017, IF&F spent approximately $101 million on dividend payouts and $53 million on share repurchases.

Outlook

For FY17, IF&F reiterated its currency neutral sales growth projection of 7.5% to 8.5%, which will be primarily driven by the contribution of acquisitions from David Michael and Fragrance Resources as well as modest organic growth primarily in Flavors. From an adjusted operating profit and EPS perspective, excluding the impact of currency, the Company is forecasting to achieve 5.5% to 6.5% and 6.5% to 7.5% growth, respectively.

Stock Performance

On Monday, August 28, 2017, the stock closed the trading session at $136.14, marginally rising 0.16% from its previous closing price of $135.92. A total volume of 170.71 thousand shares have exchanged hands. International Flavors & Fragrances' stock price advanced 2.25% in the last one month and 8.31% in the previous six months. Furthermore, since the start of the year, shares of the Company have rallied 15.54%. The stock is trading at a PE ratio of 27.46 and has a dividend yield of 2.03%. The stock currently has a market cap of $10.76 billion.

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SOURCE: Pro-Trader Daily