International Flavors & Fragrances Inc (IFF) has reported a 0.95 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $79.92 million, or $1 a share in the quarter, compared with $79.17 million, or $0.98 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $97.82 million, or $1.22 a share compared with $84.48 million or $1.05 a share, a year ago. Revenue during the quarter grew 6.55 percent to $762.56 million from $715.65 million in the previous year period. Gross margin for the quarter contracted 88 basis points over the previous year period to 42.88 percent. Total expenses were 85.79 percent of quarterly revenues, up from 83.09 percent for the same period last year. That has resulted in a contraction of 270 basis points in operating margin to 14.21 percent.
Operating income for the quarter was $108.32 million, compared with $121.02 million in the previous year period.
However, the adjusted operating income for the quarter stood at $136.02 million compared to $130.16 million in the prior year period. At the same time, adjusted operating margin contracted 35 basis points in the quarter to 17.84 percent from 18.19 percent in the last year period.
"The fourth quarter of 2016 came in consistent with our expectations, improving sequentially versus the third quarter," said chairman and chief executive officer Andreas Fibig. "We are pleased to report that sales grew high-single-digits driven by strong new wins across both businesses and the contribution of our recent acquisition of David Michael. In terms of our bottom line, we continued to benefit from volume growth as well as cost and productivity initiatives that allowed us to selectively invest in strategic opportunities.
For financial year 2017, International Flavors & Fragrances Inc projects adjusted revenue to grow in the range of 5 percent to 6 percent. The company projects adjusted operating income to grow in the range of 3.50 percent to 4.50 percent.
Operating cash flow improves
International Flavors & Fragrances Inc has generated cash of $535.41 million from operating activities during the year, up 23.49 percent or $101.83 million, when compared with the last year. The company has spent $355.46 million cash to meet investing activities during the year as against cash outgo of $577.16 million in the last year. It has incurred net capital expenditure of $119.56 million on net basis during the year, up 23.60 percent or $22.83 million from year ago.
The company has spent $19.69 million cash to carry out financing activities during the year as against cash outgo of $131.30 million in the last year period.
Cash and cash equivalents stood at $323.99 million as on Dec. 31, 2016, up 78.03 percent or $142 million from $181.99 million on Dec. 31, 2015.
Debt moves up
International Flavors & Fragrances Inc has witnessed an increase in total debt over the last one year. It stood at $1,325.37 million as on Dec. 31, 2016, up 24.13 percent or $257.65 million from $1,067.72 million on Dec. 31, 2015. Total debt was 32.99 percent of total assets as on Dec. 31, 2016, compared with 28.69 percent on Dec. 31, 2015. Debt to equity ratio was at 0.81 as on Dec. 31, 2016, up from 0.67 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 8.78 for the quarter from 10.34 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
