IFF reported second quarter sales of $666 million, a gain of 17% year-over-year. Operating profit rose to $65 million in the period. Nearly all regions and categories (particularly fine fragrance, hair care and toiletries) increased by double digits. and led to a 23% growth in the fragrance unit. The results were driven by new business wins, higher volumes and restocking.
"It is clear that the strong momentum we experienced in the beginning of the year continued into the second quarter," said Doug Tough, chairman and CEO, IFF. "We are very pleased to report strong year-over-year improvements across all our financial metrics. While we have benefited from some elements of restocking and favorable prior year comparisons, the team was successful in winning key new business that will support our efforts to drive market share improvements. As we enter the second half of 2010, it is important to note that the benefits of restocking have begun to subside. When combined with stronger prior year comparisons, we expect local currency sales in the second half to return to more normalized levels, with relative strength in the third quarter versus the fourth. In addition, we continue to be mindful that foreign exchange movements may impact our results. As a result, in order for us to be successful, we must continue to execute our plans, serve customers well, anticipate challenges and win in the marketplace every day."