IFF Presents “Learning Labs” Video Series to Demonstrate Potential of New Company

Rhea-AI Summary

IFF has launched a new video series, “Learning Labs,” showcasing discussions with its leadership on the company's segments and R&D functions. This initiative follows IFF's merger with DuPont's Nutrition and Biosciences, aiming to increase transparency and stakeholder communication. Additionally, IFF has provided segment-level financial details for 2020 based on pro forma results, highlighting sales and adjusted EBITDA across its four segments. Chairman and CEO Andreas Fibig emphasized the importance of connecting with investors and showcasing IFF's growth potential.

Positive

• Introduction of the 'Learning Labs' video series enhances stakeholder communication.
• Pro forma financial results indicate stable sales performance across segments.
• Commitment to transparency following the merger with DuPont's N&B business.

Negative

• Pro forma sales for the Nourish segment showed a 2% decline year-over-year.
• Scent segment reported varying performance, with Q3 sales declining by 6%.

IFF (NYSE: IFF) today introduced a new “Learning Labs” video series, featuring in-depth discussions with the leadership of the company’s segments and R&D function. Each video provides a comprehensive overview of IFF’s robust portfolio and enhanced capabilities following its recently completed merger with DuPont’s Nutrition and Biosciences (“N&B”) business. The complete “Learning Labs” series can be found here: ir.iff.com/events-presentations. In addition, IFF has also provided segment-level financial detail based on 2020 pro forma results.

“As a global industry leader of high-value consumer ingredients, we are pleased to provide a closer look into our capabilities, operational model and future growth potential,” said Andreas Fibig, IFF Chairman and CEO. “Stakeholder communication remains essential to IFF’s continued growth, and since combining with N&B, we have continued to explore new ways to meaningfully connect with our investors. The insights shared through our ‘Learning Labs’ series and detail provided in our 2020 pro forma segment financials is a testament to our commitment to continued transparency and greater comparability to peers.”

IFF 2020 Pro Forma Segment-Level Financial Results

To accompany the “Learning Labs” video series, IFF has provided additional detail on the financial performance, including sales and adjusted EBITDA metrics, for each of the company’s four segments on a 2020 pro forma basis.

Welcome to IFF

At IFF (NYSE: IFF), an industry leader in food, beverage, scent, health and biosciences, science and creativity meet to create essential solutions for a better world – from global icons to unexpected innovations and experiences. With the beauty of art and the precision of science, we are an international collective of thinkers who partners with customers to bring scents, tastes, experiences, ingredients and solutions for products the world craves. Together, we will do more good for people and planet. Learn more at iff.com, Twitter, Facebook, Instagram, and LinkedIn.

International Flavors & Fragrances Inc.
2020 Pro Forma Combined Reporting Segments (1)(2)
(Dollars in millions)
	Q1 2020 (3)		Q2 2020		Q3 2020		Q4 2020		Pro Forma FY 2020 (excl. N&B Jan.) (3)		Pro Forma FY 2020 (4)
Nourish Pro Forma Sales	1,276		1,450		1,418		1,488		5,632		5,887
Nourish Pro Forma Adjusted Operating EBITDA	255		303		275		257		1,090		1,153
as % of Pro Forma Sales	20%		21%		19%		17%		19%		20%
Scent Pro Forma Sales	541		475		525		524		2,064		2,064
Scent Pro Forma Adjusted Operating EBITDA	118		87		118		93		416		416
as % of Pro Forma Sales	22%		18%		22%		18%		20%		20%
Health & Biosciences Pro Forma Sales	427		588		579		572		2,166		2,353
Health & Biosciences Pro Forma Adjusted Operating EBITDA	131		181		172		149		634		680
as % of Pro Forma Sales	31%		31%		30%		26%		29%		29%
Pharma Solutions Pro Forma Sales	152		224		215		188		779		839
Pharma Solutions Pro Forma Adjusted Operating EBITDA	42		62		61		38		203		216
as % of Pro Forma Sales	28%		28%		28%		20%		26%		26%

		% Change in Sales - 2020 vs. 2019 (5)
		Q1 (3)			Q2			Q3			Q4
		Reported	Currency Neutral		Reported	Currency Neutral		Reported	Currency Neutral		Reported	Currency Neutral
Nourish		3%	5%		(4)%	(1)%		(5)%	(3)%		—%	1%
Scent		4%	7%		(6)%	—%		4%	9%		4%	6%
Health & Biosciences		8%	11%		(4)%	(2)%		(1)%	—%		1%	—%
Pharma Solutions		9%	11%		6%	7%		2%	1%		(2)%	(4)%
Total		4%	7%		(4)%	—%		(2)%	—%		1%	1%
		Pro Forma FY 2020 (excl. N&B Jan.) (3)			Pro Forma FY 2020 (4)
		Reported	Currency Neutral		Reported	Currency Neutral
Nourish		(2)%	—%		(2)%	—%
Scent		2%	5%		2%	5%
Health & Biosciences		—%	1%		—%	1%
Pharma Solutions		4%	3%		1%	1%
Total		—%	2%		(1)%	1%

_______________________

Note: Adjusted Operating EBITDA for each segment is defined as Income (Loss) Before Taxes before depreciation and amortization expense, interest expense, restructuring and other charges, net and certain non-recurring items. Additionally, all corporate expenses have been allocated to all of the reportable segments.

1. The pro forma historical segment information has been presented for informational purposes only and is not necessarily indicative of what IFF's results of operations actually would have been, had the N&B transaction occurred on the dates indicated below. In addition, the pro forma historical segment information does not purport to project the future operating results of the Company.
2. Dollar amounts may not foot due to rounding.
3. The first quarter and Pro Forma FY 2020 (excl. N&B Jan.) show the combination of the historical results of IFF and N&B as if the N&B transaction had been consummated on February 1, 2020. Therefore, the first quarter and Pro Forma FY 2020 (excl. N&B Jan.) do not include the N&B business for the month of January 2020, which would allow comparability against the 2021 calendar year since the merger occurred on February 1, 2021. Total N&B Sales and Adjusted Operating EBITDA included in reportable segments for the month of January 2020 amounted to $502 million and $124 million, respectively.
4. Pro Forma FY 2020 shows the combination of the historical results of IFF and N&B as if the N&B Transaction had been consummated on January 1, 2020. Therefore, Pro Forma FY 2020 includes a full twelve months of 2020 N&B and IFF results.
5. Effective 2021, we calculate currency neutral growth by translating current year invoiced sale amounts at the average exchange rates used for the corresponding prior year period. Previously we calculated currency neutral numbers by comparing current year results to the prior year results restated at exchange rates in effect for the current year based on the currency of the underlying transaction.

 

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FAQ

What is the 'Learning Labs' series introduced by IFF?

The 'Learning Labs' series is a new video initiative by IFF featuring discussions with company leadership about its segments and R&D capabilities.

How did IFF perform financially in 2020 after the DuPont merger?

IFF reported segment-level financial details based on 2020 pro forma results, with varying sales and adjusted EBITDA metrics across its segments.

What were the challenges faced by IFF in the Nourish segment in 2020?

The Nourish segment experienced a 2% decline in pro forma sales year-over-year, indicating challenges in maintaining growth.

Who mentioned the importance of stakeholder communication for IFF?

Andreas Fibig, Chairman and CEO of IFF, emphasized the importance of enhancing stakeholder communication for continued growth.

What are the four segments of IFF mentioned in the press release?

The four segments of IFF are Nourish, Scent, Health & Biosciences, and Pharma Solutions.