International Flavors & Fragrances Inc. (IFF) reported second quarter 2011 revenue of $716 million, 7% higher than the prior year period's revenue. Excluding the impact of foreign currency, revenue in local currency increased 3%.
"We are pleased with our second quarter performance in light of our challenging 17% local currency sales growth comparison and the significant increases in raw material costs," said Doug Tough, chairman and CEO, IFF. "The diversification of our product and geographic portfolio provided us the ability to deliver solid local currency sales growth. From a profitability perspective, our initial pricing actions and continued cost discipline helped mitigate raw material pressures to drive double-digit adjusted operating profit and adjusted EPS growth."
For the fragrance business unit, the local currency sales in the second quarter declined 2% against a record 23% comparable in the prior year period. Fine fragrance and beauty care results were challenged by a very strong year-ago comparison of 37%, as net new business was more than offset by volume declines. Functional fragrance grew slightly supported by net new business across all categories and a solid performance in the home care category. Fragrance ingredients results were down year-over-year against our strongest year-ago comparison, as lower consumption rates impacted results.