International Flavors & Fragrances reported second-quarter results that missed analyst expectations and cut its full-year guidance following the divestiture of its Food Ingredients business. Revenue fell 29.3% year over year to $1.95 billion, well below the $2.61 billion consensus, while adjusted EPS of $0.82 missed the $1.12 estimate. The company lowered its full-year revenue guidance to $7.5 billion at the midpoint from $10.65 billion, and set EBITDA guidance of $1.57 billion, below analyst estimates of $2.11 billion. Management attributed temporary margin pressure to stranded costs from the divestiture, with CEO Jon Erik Fyrwald saying two-thirds of those costs will be removed in year one. Organic revenue rose 6% year over year, and the company highlighted volume growth across its Scent, Taste, and Health & Biosciences divisions.
International Flavors & Fragrances IncMissed Q2 estimates and slashed full-year guidance due to divestiture and stranded costs.
