Increased annual profit for Haverhill-based UK arm of International Flavours & Fragrances
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).
- 1 Richest people in East Anglia revealed on Sunday Times Rich List
- 2 'You have broken us!' - New cafe at Suffolk beauty spot on huge demand
- 3 'We are both in love' - Ed Sheeran announces birth of second daughter
- 4 Indiana Jones-inspired metal detectorist finds £65k Roman hoard
- 5 Colchester gets city status - fuelling disappointment over no Ipswich bid
- 6 Thetford homes left with 'significant' damage following blaze
- 7 My Suffolk Life: ‘We had to move to Suffolk to be together’
- 8 Severe delays on major Suffolk route after crash
- 9 Big sales, Bosmans and 'mutual consent' - Why contracts are a balancing act
- 10 School apologises for GCSE paper error as it falls to inadequate
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.”