IFF raises low end of sales outlook but warns fourth-quarter profit will soften

what happened

International Flavors & Fragrances, a maker of flavors, fragrances and food ingredients, reported a third-quarter net loss of $55 million, or 22 cents per share, against a profit of $40 million, or 16 cents, a year earlier, according to Dow Jones Newswires. Adjusted earnings came to 83 cents a share, above the 81 cents FactSet analysts had projected.

Net sales grew 4% to $1.94 billion, with the scent division up 6.3%, beating the $1.91 billion analysts had expected. CEO Erik Fyrwald said every division improved and health and biosciences edged up modestly.

The company expects weaker profit in the fourth quarter, mainly in health and biosciences, as the macro backdrop shifts. Full-year sales guidance now sits at $7.5 billion to $7.6 billion, versus the $7.74 billion analysts forecast, and the shares slipped 3.5% in after-hours trading.

why it matters

The quarter beat on adjusted numbers, but investors will weigh the message about the final three months more heavily. The sales range sits below consensus, which helps explain the after-hours decline in the stock.

market impact

IFF shares: weaker fourth-quarter profit outlook pressures the stock

• ▼IFF shares pressure down — a softer fourth-quarter profit outlook weighs on the stock

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