IFFreported fourth quarter 2007 sales of $553 million, a rise of 8% over the same period 2006. Net income totaled $47 million. Gross profit declined slightly, from 2006's 41% to 40.7% due to lower fragrance volumes, higher material costs and lower ingredients prices. R&D expenses rose 12% to 9.7%.
Fragrance: Fourth quarter fragrance sales rose 2% based on a 4% and 3% jump in ingredient and functional fragrance sales, respectively. Rising production and related compound demands in Asia led to strong ingredient sales results for the period. Meanwhile, fine and beauty care category sales fell, primarily in North America and Europe.
Sales for full-year 2007 totaled nearly $2.3 billion, a gain of 9%, year-over-year. Results were boosted by a weak US dollar. Net income totaled $247 million, up 9% year-over-year. Gross profit declined slightly, from 2006's 42.2% to 41.8% due to higher material costs and lower ingredients prices. R&D expenses were essentially flat at 8.7%.
Fragrance: Fragrance sales, up 6% overall, were strongest in the fine and beauty care categories, which rose by 8%. Ingredient sales rose 9%.