First Quarter 2023 Consolidated Summary:
Reported (GAAP) Adjusted (Non-GAAP)1 Sales Income Before Taxes EPS Operating
EBITDA Operating EBITDA Margin EPS ex Amortization
$3.0 B $14 M $(0.04) $503 M 16.6% $0.87
“We delivered first quarter 2023 results in line or ahead of our expectations amidst a challenging
operating environment," said IFF CEO Frank Clyburn. “Our team successfully navigated soft endmarket demand and customer inventory destocking as they executed on our priorities to deliver our
financial commitments. As we look ahead to the balance of the year, we continue to believe our volume performance will improve, yet acknowledge that market conditions remain uncertain. As such,
we remain steadfast in our focus to control what we can control as we solidify profitability, maximize cash flow and drive portfolio optimization to generate strong returns for our shareholders.”
First Quarter 2023 Consolidated Financial Results
• Reported net sales for the first quarter were $3.03 billion, flat versus the prior-year period. On a comparable basis2
, currency neutral sales increased 1% versus the prior-year period,
led by Scent and Pharma Solutions.
• Income before taxes on a reported basis for the first quarter was $14 million. Adjusted operating EBITDA for the first quarter was $503 million. On a comparable basis2
neutral adjusted operating EBITDA declined 19% versus the prior-year period, as pricing and productivity gains were more than offset by lower volumes and unfavorable manufacturing
absorption related to the Company's inventory reduction program.
• Reported earnings per share (EPS) for the first quarter was $(0.04). Adjusted EPS excluding amortization was $0.87 per diluted share.
• Cash flows from operations at the end of the first quarter was $127 million, and free cash flow defined as cash flows from operations less capital expenditures totaled $(48) million.
Net debt to credit adjusted EBITDA at the end of the first quarter was 4.6x.
1 Schedules at the end of this release contain reconciliations of reported GAAP to Non-GAAP metrics.
See Use of Non-GAAP Financial Measures for explanations of our Non-GAAP metrics.
2 Comparable results for the first quarter exclude the impact of divestitures and acquisitions
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