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IFF reported second quarter 2008 sales of $636.12 million, up 11% from the prior year period. Sales benefitted from the generally weaker U.S. dollar, mainly against the Euro. Gross profit, as a percentage of sales, was 41.5% compared with 42.9% in the prior year quarter. This decrease was mainly the result of the decline in North American sales, which impacted absorption of manufacturing expenses, most notably in fragrance compounds. In addition, product mix and some impact of higher material costs also affected margins.
The fragrance business unit reported an increase of 7% to reach $346.33 million. Fragrance sales grew 18% in Asia, 15% in Europe and 14% Latin America, which offset an 11% decline in North America.
“While North America continues to be a challenge, total company revenue benefitted from growth in the greater Asia and Latin America regions where sales grew 20% or more," said Robert Amen, chairman and CEO, IFF. "Our non-U.S. sales in the second quarter amounted to 75% of total revenue, with more than one-third coming from the world’s emerging markets.”
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