Increased annual profit for Haverhill-based UK arm of International Flavours & Fragrances

The International Flavours & Fragrances site in Duddery Hill, Haverhill.
Picture: Archant

The International Flavours & Fragrances site in Duddery Hill, Haverhill. Picture: Archant

United States-based International Flavours & Fragrances, whose UK operation is based in Suffolk, has reported strong sales growth for the first half of 2017 but a dip in pre-tax profits.

Group-wide sales during the second quarter of the year grew by 6% to 842.86m US dollars (£765.33m), leaving revenue for the six months to June 30 ahead by a similar margin as 1.671bn dollars (£1.517bn).

However, profit before tax for the second quarter was 7% down year-on-year at 142.04m dollars (£128.97m), largely reflecting a combination of restructuring charges, write-downs and development costs. This left the half-year figure 9% lower at 280.52m dollars (£254.72m).

In the year to December 31, 2016, IFF generated net sales of 3.116bn dollars, up 3% on 2015, with pre-tax profit of 523.7m dollars, down 3% year-on-year.

Accounts newly filed at Companies House show that the holding company for the group’s UK operations, Haverhill-based International Flavours & Fragrances (GB) – a member of the EADT/EDP Top 100 – contributed a profit of £23.787m, up 26.2% on the previous year.

Sales in North America saw the strongest growth during the second quarter, rising by 19%, followed by Europe, Africa and the Middle East, with growth of 6% on a reported basis and 11% adjusted for currency changes.

Latin America saw growth of 3% (plus 1% on a currency neutral basis) while sales in Greater Asia fell 3% (minus 1% adjusted).

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IFF chairman and CEO Andreas Fibig said: “Our second quarter results finished in line with our expectations, with improved trends across several of our key financial metrics.

“We continued to advance our strategy as we drove innovation, executed our productivity programmes and benefited from acquisitions. These improvements reflect significant efforts across our entire organization as we implement our long-term strategy and generate strong returns for our shareholders.”

He added: “Looking forward, we expect second half performance to see improved year-over-year organic sales growth and additional savings related to the productivity programme we announced earlier this year.

“For the full year, we remain optimistic that we can achieve our previously stated currency neutral guidance.”