Leading US flavour company International Flavors & Fragrances (IFF) this week reported an increase in sales for the second quarter 2002 with figures exceeding previously announced expectations. In Europe strong fragrances sales were not enough to offset a sharp drop in flavour sales.
Sales totalled $476.3 million (€489.3m) for the second quarter 2002, increasing 3 per cent over the comparable 2001 results.
According to a statement released second quarter 2001 sales, excluding sales attributable to non-core businesses disposed of during 2001, were $462.9 million. Sales for the previous year were reported as $478.2 million and earnings for the second quarter 2002, excluding nonrecurring charges, were at the high end of expectations, reaching $.54 per share in comparison to $.40 per share for the prior year quarter.
Reported second quarter earnings including nonrecurring charges were $.47 per share in 2002, compared to $.34 for the previous year.
The company stated that second quarter sales performance was strongest in India where fragrance sales jumped 27 per cent in local currency (29 per cent in dollars) and flavour sales increased a solid 7 per cent. In Europe the picture was less rosy. Despite strong local currency fragrance sales in Europe, an increase of 11 per cent, the fragrance increase was somewhat offset by expected weakness in Europe flavours, where local currency sales actually dropped by 3 per cent, resulting in flat dollar sales for flavours.
Richard A. Goldstein, IFF chairman and chief executive officer said: "We are very pleased with the progress we have made during the quarter and year to date. Our focus on successfully completing the integration of BBA combined with our commitment to improved customer service and top-line growth is beginning to pay off.
While we must remain cautious due to the uncertain strength of the global economy, we are confident that IFF is on the path to growth and superior long-term operating results."