Investing in International Flavors (IFF)? Don’t Miss Assessing Its International Revenue T
May 13, 2025
Have you looked into how International Flavors (IFF) performed internationally during the quarter ending March 2025? Considering the widespread global presence of this ingredients producer for food, cosmetics and consumer products industries, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company’s dependence on international markets, as it sheds light on the firm’s earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.
In our recent assessment of IFF’s quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company’s total revenue for the quarter amounted to $2.84 billion, showing decrease of 1.9%. We will now explore the breakdown of IFF’s overseas revenue to assess the impact of its international operations.
Europe, Africa and Middle East generated $952 million in revenues for the company in the last quarter, constituting 33.49% of the total. This represented a surprise of +1.02% compared to the $942.36 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Africa and Middle East accounted for $927 million (33.45%), and in the year-ago quarter, it contributed $977 million (33.70%) to the total revenue.
Of the total revenue, $353 million came from Latin America during the last fiscal quarter, accounting for 12.42%. This represented a surprise of -5.51% as analysts had expected the region to contribute $373.59 million to the total revenue. In comparison, the region contributed $358 million, or 12.92%, and $374 million, or 12.90%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Greater Asia contributed $670 million in revenue, making up 23.57% of the total revenue. When compared to the consensus estimate of $671.04 million, this meant a surprise of -0.16%. Looking back, Greater Asia contributed $674 million, or 24.32%, in the previous quarter, and $682 million, or 23.53%, in the same quarter of the previous year.
For the current fiscal quarter, it is anticipated by Wall Street analysts that International Flavors will report a total revenue of $2.81 billion, which reflects a decline of 2.9% from the same quarter in the previous year. The revenue contributions are expected to be 34.7% from Europe, Africa and Middle East ($972.63 million), 13.7% from Latin America ($385.59 million) and 24.7% from Greater Asia ($692.59 million).
For the full year, the company is projected to achieve a total revenue of $10.92 billion, which signifies a fall of 4.9% from the last year. The share of this revenue from various regions is expected to be: Europe, Africa and Middle East at 33.5% ($3.66 billion), Latin America at 13.3% ($1.45 billion) and Greater Asia at 23.9% ($2.61 billion).
International Flavors’ reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company’s prospects.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company’s standing within its home borders, that influence analysts’ earnings forecasts.
At Zacks, a company’s changing earnings outlook is given considerable attention due to its proven, strong influence on a stock’s price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends.
At present, International Flavors holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Over the past month, the stock has seen an increase of 3.9% in its value, whereas the Zacks S&P 500 composite has posted an increase of 9.1%. The Zacks Basic Materials sector, International Flavors’ industry group, has ascended 5% over the identical span. In the past three months, there’s been a decline of 10.8% in the company’s stock price, against a fall of 3.1% in the S&P 500 index. The broader sector has declined by 2.2% during this interval.
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This article originally published on Zacks Investment Research (zacks.com).
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