International Flavors Q4 Earnings Beat Estimates, Sales Rise Y/Y

International Flavors & Fragrances Inc. IFF reported adjusted earnings of 97 cents per share in fourth-quarter 2024, beating the Zacks Consensus Estimate of 78 cents. The bottom line improved 35% from the year-ago quarter.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Including one-time items, the company reported a loss of 18 cents per share compared with the prior-year quarter’s loss of $10.21.International Flavors & Fragrances Inc. Price, Consensus and EPS Surprise  International Flavors & Fragrances Inc. price-consensus-eps-surprise-chart | International Flavors & Fragrances Inc. QuoteInternational Flavors’ net sales were $2.77 billion in the December-end quarter, up 2.5% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $2.67 billion. In the quarter, currency-neutral sales were up 6%, aided by growth across all segments.International Flavors’ Q4 Gross Margin Improves Y/YIn the reported quarter, International Flavors’ cost of goods sold was down 2.8% year over year to $1.79 billion. Gross profit rose 14% to $980 million. The gross margin came in at 35.4% compared with 31.8% in the year-ago quarter.Research and development expenses increased 8.3% year over year to $170 million. Selling and administrative expenses rose 16.4% to $517 million in the fourth quarter. Adjusted operating EBITDA came in at $471 million, up 2.2% from the prior-year quarter’s $461 million. The adjusted operating EBITDA margin was 17% compared with the year-ago quarter’s 17.1%.IFF’s Q4 Segmental PerformancesSales in the Nourish segment grew 1.2% year over year to $1.41 billion in the December-end quarter. On a comparable basis, currency-neutral sales rose 4%. The figure beat our estimate of $1.37 billion. The upside was driven by double-digit growth in Flavors, partially negated by softness in the Functional Ingredients business.The segment’s adjusted operating EBITDA was $170 million, up 3% year over year. Our estimate for the segment’s adjusted EBITDA was $160 million.Sales generated in the Health & Bioscience segment were $553 million compared with the year-earlier quarter’s $528 million. Currency-neutral sales rose 6% on a comparable basis. Growth was aided by a double-digit performance in Home & Personal Care, and Grain Processing businesses. Our estimate was $538 million for the same.The adjusted operating EBITDA was $157 million in the quarter compared with $162 million in the prior-year quarter. Our model had projected an EBITDA of $152 million for the segment.The Scent segment’s sales were $579 million compared with the year-ago quarter’s $578 million. Currency-neutral sales improved 7%, led by double-digit growth in Fragrance Ingredient, high-single-digit growth in Fine Fragrance and mid-single-digit growth in Consumer Fragrance. The figure surpassed our estimate of $546 million.The segment’s adjusted operating EBITDA decreased 10.2% year over year to $97 million. The figure missed our projection of $101 million. Sales in Pharma Solutions were $228 million in the fourth quarter, up 12.3% year over year. The segment’s sales, per our model, were $203 million. Currency-neutral sales improved 12%, led by growth in the Core Pharma and Industrial businesses. The adjusted operating EBITDA surged 80.8% year over year to $47 million on higher volumes and productivity improvements. The figure beat our projection of $24 million.International Flavors’ Q4 Cash Flow & Balance Sheet UpdatesIFF had cash and cash equivalents of $469 million at the end of 2024, down from $703 million at the end of 2023. Long-term debt was $7.56 billion at the 2024 end compared with $9.19 billion at the 2023 end.International Flavors utilized $1.07 billion in cash in operating activities in 2024, up from $1.44 billion in the prior year.IFF’s 2024 PerformanceThe company reported adjusted earnings of $4.31 per share in 2024, beating the Zacks Consensus Estimate of $4.15. The bottom line improved 29% from 2023. Including one-time items, the company reported earnings of 95 cents per share against the prior year’s loss of $10.05.International Flavors’ net sales were $11.48 billion in 2024, flat year over year. The top line surpassed the Zacks Consensus Estimate of $11.38 billion. In the year, currency-neutral sales rose 6%. The upside was driven by double-digit growth in the Scent segment, high-single-digit growth in the Health & Biosciences segment, and a mid-single-digit increase in the Nourish segment.International Flavors’ 2025 GuidanceThe company expects sales for fiscal 2025 between $10.6 billion and $10.9 billion. Volume growth is anticipated across all businesses. Adjusted EBITDA is expected between $2 billion and $2.15 billion.IFF Stock’s Price PerformanceIn the past year, the company’s shares have gained 7.2% against the industry’s decline of 17.4%.  Image Source: Zacks Investment Research International Flavors’ Zacks RankIFF currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Performance of Other Chemical - Specialty Stocks in Q4Axalta Coating Systems Ltd. AXTA reported earnings of 60 cents per share in the fourth quarter of 2024, up from 46 cents a year ago. It surpassed the Zacks Consensus Estimate of 51 cents.AXTA’s sales rose around 1% year over year to $1,311 million in the quarter. It beat the Zacks Consensus Estimate of $1,296.5 million. The top line includes a 1% headwind from foreign currency swings.Linde plc’s LIN adjusted earnings for the fourth quarter of 2024 were $3.97 per share, surpassing the Zacks Consensus Estimate of $3.93. The bottom line improved from the year-ago quarter’s profit of $3.59. Total quarterly sales of $8.28 billion missed the Zacks Consensus Estimate of $8.36 billion and declined from the year-ago quarter’s $8.30 billion. LIN’s strong quarterly earnings were primarily driven by higher pricing and volumes from the Americas segment.Ecolab Inc.’s ECL adjusted earnings in fourth-quarter 2024 were $1.81 per share, up from $1.55 a year ago. The figure surpassed the Zacks Consensus Estimate of $1.79.ECL reported net sales of $4.01 billion for the quarter, beating the Zacks Consensus Estimate of $3.96 billion. The company’s top line increased 1.7% year over year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ecolab Inc. (ECL): Free Stock Analysis Report International Flavors & Fragrances Inc. 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