International Flavors & Fragrances (NYSE:IFF) revealed on Tuesday a much stronger-than-expected jump in first-quarter profit, lifted by its expansion in emerging markets and continued demand in the West for healthy products.
The maker of flavors and fragrances for consumer products posted net income of $84 million, or $1.03 a share, compared with $63.7 million, or 80 cents a share, in the same quarter last year, ahead of average analyst estimates polled by Thomson Reuters of 94 cents.
Revenue for the three-month period was $714 million, up 9% from $653.9 million a year ago, beating the Street’s view of $683.9 million. Double-digit sales growth in emerging markets helped lead the results, further assisted by strong demand for its healthier and natural offerings in developed markets.
“We are pleased with our excellent start to 2011, especially given that we are comparing to a very strong year-ago performance of double-digit growth,” IFF CEO Doug Tough said in a statement, noting the strong top-line performance provided “operational leverage that when combined with our continued focus on cost discipline drove a double-digit increase in operating profit.”
Expressing optimism about the performance coupled with anticipated opportunities this year, Tough said the company is confident it will achieve its long-term targets of 4% to 6% local currency sales growth, 7% to 9% operating profit growth and 10% or more earnings per share growth in fiscal 2011.