IFF files 10-Q for the period ending March 31, 2024

TL;DR

<b>IFF's Q1 2024 10-Q filing details its financial position, including balance sheet data and specific debt instruments.</b>

AI Summary

INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. IFF reported financial results for the first quarter of 2024. The filing includes detailed balance sheet information as of March 31, 2024, December 31, 2023, and December 31, 2022. Key balance sheet components such as Common Stock, Additional Paid-In Capital, Retained Earnings, and Treasury Stock are itemized. The report specifies share and currency information in USD. It references specific accounting standards and members, including 'OtherLiabilitiesCurrent' and 'A1.800SeniorNotesDue2026Member'.

Why It Matters

For investors and stakeholders tracking INTERNATIONAL FLAVORS & FRAGRANCES INC, this filing contains several important signals. This filing provides a snapshot of IFF's financial health and capital structure as of the end of the first quarter of 2024, crucial for investors assessing financial stability. The detailed breakdown of equity and debt components, including senior notes, offers insights into the company's leverage and funding strategies.

Risk Assessment

Risk Level: — INTERNATIONAL FLAVORS & FRAGRANCES INC shows moderate risk based on this filing. The filing is a standard quarterly report, but the specific financial figures and debt instruments mentioned require careful analysis to fully understand the company's financial risk.

Analyst Insight

Investors should review the detailed balance sheet and debt disclosures to assess IFF's financial leverage and liquidity.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-05-06 — Filing Date (Date the report was submitted)
• USD — Currency (All financial values are reported in US Dollars)

Key Players & Entities

• INTERNATIONAL FLAVORS & FRAGRANCES INC (company) — Filer name
• IFF (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-05-06 (date) — Filing date
• A1.800SeniorNotesDue2026Member (dollar_amount) — Specific debt instrument

FAQ

Industry Context

International Flavors & Fragrances Inc. operates in the industrial organic chemicals sector, focusing on the creation and supply of flavors and fragrances.

Regulatory Implications

As a publicly traded company, IFF is subject to SEC regulations, including the requirement to file quarterly reports (10-Q) detailing its financial condition.

What Investors Should Do

1. Analyze the detailed balance sheet figures for March 31, 2024, comparing them to prior periods.
2. Examine the specific debt instruments mentioned, such as 'A1.800SeniorNotesDue2026Member', to understand the company's debt obligations.
3. Review the equity components (Common Stock, Additional Paid-In Capital, Retained Earnings) to assess changes in the company's capital structure.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q
• 2024-05-06: Filing Date — Date the 10-Q was officially submitted to the SEC

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive overview of a company's financial performance during a specific quarter.)

Common Stock

A class of stock that provides the holder with ownership in a corporation. (Represents a core component of a company's equity structure.)

Retained Earnings

The cumulative amount of net income of a corporation that has not been distributed to its shareholders. (Indicates how much profit the company has reinvested back into the business.)

Year-Over-Year Comparison

This 10-Q filing provides the financial snapshot for Q1 2024, following the company's previous filings which would have detailed prior periods.

Filing Documents

• iff-20240331.htm (10-Q) — 1376KB
• iff033124exhibit311.htm (EX-31.1) — 10KB
• iff033124exhibit312.htm (EX-31.2) — 10KB
• iff033124exhibit32.htm (EX-32) — 7KB
• 0000051253-24-000016.txt (&nbsp;) — 10535KB
• iff-20240331.xsd (EX-101.SCH) — 84KB
• iff-20240331_cal.xml (EX-101.CAL) — 90KB
• iff-20240331_def.xml (EX-101.DEF) — 612KB
• iff-20240331_lab.xml (EX-101.LAB) — 1028KB
• iff-20240331_pre.xml (EX-101.PRE) — 845KB
• iff-20240331_htm.xml (XML) — 1560KB

- Financial Information

PART I - Financial Information

Financial Statements

ITEM 1. Financial Statements Consolidated Statements of Income (Loss) and Comprehensive (Loss ) Income - Three Months Ended March 3 1 , 202 4 and 202 3 1 Consolidated Balance Sheets - March 31, 2024 and December 31, 2023 2 Consolidated Statements of Cash Flows - Three Months Ended March 3 1 , 202 4 and 202 3 3 Consolidated Statements of Shareholders' Equity - Three Months Ended March 3 1 , 202 4 and 202 3 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 35

Controls and Procedures

ITEM 4. Controls and Procedures 35

- Other Information

PART II - Other Information

Legal Proceedings

ITEM 1. Legal Proceedings 36

Risk Factors

ITEM 1A. Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 36

Other Information

ITEM 5. Other Information 36

Exhibits

ITEM 6. Exhibits 36

Signatures

Signatures 37 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. INTERNATIONAL FLAVORS & FRAGRANCES INC. CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE (LOSS) INCOME (Unaudited) Three Months Ended March 31, (AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS) 2024 2023 Net sales $ 2,899 $ 3,027 Cost of goods sold 1,875 2,063 Gross profit 1,024 964 Research and development expenses 166 161 Selling and administrative expenses 490 454 Amortization of acquisition-related intangibles 168 171 Restructuring and other charges 3 52 Gains on sale of assets ( 2 ) ( 5 ) Operating profit 199 131 Interest expense 83 100 Other expense, net 1 17 Income before taxes 115 14 Provision for income taxes 54 22 Net income (loss) 61 ( 8 ) Net income attributable to non-controlling interests 1 1 Net income (loss) attributable to IFF shareholders $ 60 $ ( 9 ) Net income (loss) per share - basic $ 0.23 $ ( 0.04 ) Net income (loss) per share - diluted $ 0.23 $ ( 0.04 ) Average number of shares outstanding - basic 255 255 Average number of shares outstanding - diluted 256 255 Net income (loss) $ 61 $ ( 8 ) Other comprehensive (loss) income, after tax: Foreign currency translation adjustments ( 293 ) 284 Losses on derivatives qualifying as hedges ( 7 ) — Pension and postretirement liability adjustment 5 ( 2 ) Other comprehensive (loss) income ( 295 ) 282 Comprehensive (loss) income ( 234 ) 274 Comprehensive income attributable to non-controlling interests 1 1 Comprehensive (loss) income attributable to IFF shareholders $ ( 235 ) $ 273 See Notes to Consolidated Financial Statements 1 Table of Contents INTERNATIONAL FLAVORS & FRAGRANCES INC. CONSOLIDATED BALANCE SHEETS (Unaudited) (DOLLARS IN MILLIONS) March 31, 2024 December 31, 2023 ASSETS Current Assets: Cash and cash equivalents $ 732 $ 703 Restricted cash 7 6 Trade receivables (net of allowances of $ 37 and $ 52 , respectively) 1,977 1,726 Inventories 2,411 2,477 Asset

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations International Flavors & Fragrances Inc. and its subsidiaries (the "Registrant," "IFF," "the Company," "we," "us" and "our") is a leading creator and manufacturer of food, beverage, health & biosciences, scent and pharma solutions and complementary adjacent products, including cosmetic active and natural health ingredients, which are used in a wide variety of consumer products. Our products are sold principally to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, cleaning products, dairy, meat and other processed foods, beverages, snacks and savory foods, sweet and baked goods, sweeteners, dietary supplements, food protection, infant and elderly nutrition, functional food, and pharmaceutical excipients and oral care products. Basis of Presentation The accompanying interim Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the related notes included in our 2023 Annual Report on Form 10-K ("2023 Form 10-K"), filed on February 28, 2024 with the Securities and Exchange Commission ("SEC"). The interim Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles ("GAAP") in the United States of America for interim financial information and with the rules and regulations for reporting on Form 10-Q, and are unaudited. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP in the United States of America have been condensed or omitted, if not materially different from the 2023 Form 10-K. The year-end balance sheet data included in this Form 10-Q was derived from the audited financial statements. In the opinion of management, all adjustments, which consist of normal recurring adjustments

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