International Flavors & Fragrances’ (IFF) net sales for the full year 2020 fell 1% year-over-year to $5.08bn. Operating profit dropped 15% to $566.48m compared to the year prior.
For the fourth quarter (the three months ended December 31) net sales fell 1% to $1.27bn compared to the prior-year period.
In the full year, the Scent business unit saw sales increase 2% year-over-year. Currency neutral sales rose 3%, or 4% (excluding the impact of the 53rd week) with Consumer Fragrance increasing high single-digits on both a reported and currency neutral basis.
Fine Fragrance declined mid-teens on a reported and currency neutral basis due to pandemic-related retail closures. Fragrance Ingredients improved low single-digits on a reported basis and was flat on a currency neutral basis.
In the fourth quarter, Scent sales increased in high-single digits both on a reported and currency neutral basis. Performance was strongest in Consumer Fragrance driven by growth in Home Care & Personal Wash. Fine Fragrance returned to growth, led by new wins in North America and Europe, while Fragrance Ingredients performed well driven by double-digit growth in Cosmetic Actives.
IFF executive vice president and cfo Rustom Jilla said the company expects that the pandemic will subside in the second half of the year. “As such, we expect to deliver 2021 results that are meaningfully better than 2020 – with broad-based top and bottom-line improvements.”
For the full year 2021, IFF expects pro forma sales to be about $11.5bn. Adjusted EBITDA margin is forecast to be 23.2%.
As reported, IFF said earlier this month that it completed the merger with DuPont’s Nutrition & Biosciences (N&B) business.