US fragrance and flavor company IFF posted net sales of $ 1.3 billion in the second quarter of 2019, a 40% increase, or $ 920 million, including the contribution from Frutarom-related sales. On a combined basis, neutral currency sales increased 1%, including the net contribution from acquisitions and divested business.
Reported earnings per share (EPS) for the second quarter was US$ 1.20 per diluted share versus US$ 1.25 per diluted share recorded in 2018. Excluding items affecting comparability, earnings per share US$ 1, 61 per diluted share in 2019 versus US$ 1.71 in the same period last year as adjusted operating income growth was more than offset by higher interest expense and outstanding shares – both related to the acquisition of Frutarom.
Scent Business Unit had a 1% increase in sales, or $ 6.2 million, to US $ 475.7 million. Performance was strongest in Fragrance Ingredients and Consumer Fragrances, both increasing mid single- digits. Fine Fragrance grew low single-digits. Scent segment profit increased 13% on a reported basis and 19% on a currency neutral basis reflecting cost and productivity initiatives, along with more favorable price to input costs.
Frutarom Business Unit had sales of $ 381.7 million, including the net contribution of acquisitions and divested business. Segment profit contributed $ 37 million in the second quarter, or $ 77 million, excluding amortization. Margin performance continued to be driven by disciplined cost management and acquisition-related synergies.
“Through our core productivity program, as well as acquisition related synergies, we achieved an 80 basis point improvement in adjusted operating profit margin excluding amortization – a marked acceleration versus our first quarter performance,” said Andreas Fibig, IFF Chairman and CEO.