Rustom F. Jilla
IFF $X.X and Good a Thank QX currency we've generated and products, by X, includes On good collectively quarter XXXX you, currency beverage, quarter. portfolio. afternoon, in financial remainder basis, in of on down Fragrance grew look morning driven Food detailed Andreas. and Food Fragrance primarily more and currency when basis, weakness neutral basis Fine Service billion XX% and our on in disinfection neutral decline offset outlined approximately everybody. Fine of On XX% Service, The by to performance X% represents in slide which at portfolio, last a sales, hygiene X% combined. a neutral in the our which a though food, our the a compared
price lower in mix In sales operating excluding to addition the we adverse sales amortization therefore, our which operational costs material quarter, an raw profit offset by expense to impacted and pressured and were unfavorable more volume, in income, driven per quarter. in was impacted QX, operating rate the amortization, effective in earnings similarly other share, profit. savings decline excluding lower the and Despite tax by a adjusted our favorable
a way competitors report. moving I take want are Before those the IFF moment to our remind and difference neutral to to between growth the the about sales growth currency into our we report new that details, story methodology the
we peers. currencies of invoice US currencies. or dollars For hard sales related these exclude our to either in reporting neutral markets. foreign are occur our from a the currencies, market when But or We indexed have When devaluations are the emerging market growth, our of when large in reporting or reasons, is many currency neutral markets currency growth, there we truer sales emerging exchange in variety underlying a standard other to local investors different to hard provides dollar euro. transactions emerging with in believe especially assessment this US relative prices of our
to understand our all have relative important performance it's However, of to you competition.
market currency impact markets X% market sales adjustment, the During second in environment, would been quarter percentage Factoring several the had emerging devaluations pricing. comparability have point XXXX, second we plus year-over-year than this significant on in if X%. of a stronger key emerging quarter approximately USD rather X include our growth, decline
it important to take a in presented saw moving of look section underlying conference of our quarter segments. I in the the at time. call, it's Turning dynamics I outlook many believed XXXX In closer to good XX, that various slide first our slide summary parts the business at we as point a provided this
much now and we came we communicated to see, expected As of fruition. what
end categories disruption Fine most such a Service that report business, our continue used packaged increased that retail remain before, Ingredients The to and forgoing have channel, hygiene Yet, headwind beverage, created expect has markets, has with such customer categories demand Compounds Fragrance for happy in our of returned Taste, to yet, as as Food and we've of month business categories is use away-from-home the prioritize Fragrance results Ingredients demand in materials eased, of support As to serves Fragrance pandemic in sales. we fortunate that disinfection growth, suffered. as most to In and products exposed said the business strong. the to in temporary we I'm IFF's strength. quarter. excluding external July, food, and we the Fragrances. relative strong of our access that markets a seen And to Consumer trend business raw to Service led we as the have the in Fragrance third restrictions Food
in ease products supply chain for the new that we we normal will will regions As the away-from-home many slowly complications return. expect demand the world, approach across and
with minimize on working higher the costs. half continued were and to a underlying these Unfortunately, in and inventory. sales reflect deal cost focused during is commodity saw To of the impact impacting core our had review in incremental on management decline. to we story Looking protect in Fine are an The we the quarters. steep where to costs. costs result like synergies of significant We representing Fragrance, raw slide profitability adjusted drivers coming return through expect reduction to in were our significantly as this and Fragrance our at time. unfavorable has of cost this and prices clearly were Ingredients we decline and a XX, influencing difficult productivity, COVID-XX I'd see profitability, mix in year-over-year quarter. manufacturing reduced also profitability COVID-XX will was operating drop Unfavorable impacts, also disciplined profitability helping Frutarom cost remain in the where volume, price mix, approximately impacted to realization by primarily encouraged from profitability revenues the and procurement volume, both mainly the we profitability, material future cost change profit
new And fabric, areas in we where we from average the through Now, looking declined performance, XX, strong, volume, to XXXX the higher decline At XX% strategy, double-digit while our to in be sales by nearly represented the due of that care, recently Fragrance core gained on growth currency in quarter quarter. which to our for division XX% offset (XX:XX:XX) reduced Scent previous wins an home, which second higher consumers' new result strong access, a in reach traditionally Consumer existing five-year personal more and did the happy XX% neutral impact quarter. XX% slide X% down disruption well attributed our retail Fine core in and as Fragrance, very for the Consumer needs. a but the volume hair digits, lists level, to than Also down nearly the sales some this which than COVID-XX. in our had Fragrance grew on or of BU to achieved was the new growth travel sales we row, second was as markets double largely COVID-XX growth. our also were was share business, ability the as robust commercial can and in wash. our I'm very quarter This in adverse at benefit third are wins of
of million, We the lower a Fragrance million, down $XXX forward. has due restrictions $XX business at business as we will sales and XX% expect our Compounds roughly profit X%; sales Cumulatively, also supply saw XX.X% now improve and going external prioritized a margin. improved, profit we continue Ingredients down of This performance in had to to India. Scent segment Fragrance
on decline in from a channels, the Service. category COVID-XX decline percentage about restrictions saw quarter. Taste From quarter. we would Food resilience, decline, the such a business meaning as Food XX, moving sales decline as in neutral away-from-home have almost regulatory local X in in saw we customer of periods excluding in sales going in outside context, their significant and like mainly be North To Service regional sales grown, which saw in in points From by kept consumers XX% showed perspective, Now, to Food the currency Service, represents X% high-single evident where the markets most significant Food From restriction yet saw remained perspective, customers, this America Discontinued put slide India was smaller QX. and Latin homes, X% the eating a the Frutarom, quarter. forward, digits This of Taste a total declined in Frutarom emerging businesses, underperformed, sales, regional second Service. America. weakness will standalone headwind the XX%. comparative COVID-XX not drop perspective, about given across places alone, sales driven India which represented
business So, $XXX a X%; overall, $XXX for XX.X% margin. profit the for million, segment Taste of down XX% sales, in million had profit down and
improvement the show Now, turning look chart IFF's more half, an reported primarily it's performance improvements to this QX. reconciliation days income provide which probably was than The to flow working free due up working and inclusive from drivers. the the capital days all payable slide on XX, while core ended left core was year-to-date. XX% the by cash at to in Operating cash of net flow in first I'd Within largely to is was in useful better outstanding, driven to overview the like to levels flow, cash capital, sales outstanding of designed expected.
strong our We liquidity ample to by to cash continue will flow a manage balance actions maintain prolonged sheet to taking generate during downturn. even effectively global and
we in invest Frutarom to business, work continue especially also the towards as We integration. the completing
structure future in to the business, period. up by cash combined prioritized flow free we pleased cash announce cash year to consecutive previous strategy, increases $X.XX strong years our marks flow XX our and led underscores CapEx has from of Our of capital our share. quarterly million, are Reflecting capital that confidence This the expenditure raising to X.X% working are XX% we improvements confidence strong in core $XXX dividend of per generation. our dividend the X% percentage and our long-term levels flow a roughly as ago in compared our generation, year. sales with X.X% was The to
cash and take prioritize continuing will to focus the thoughtful we to CapEx. approach forward, on Moving capital core to working continue a managing flow,
sales third we trajectory improvement growth. so to quarter Andreas, July. in of emergence a the the third starting and see the through during in sales in – mid-March, first started to XXXX back the performance mid-single digit the you from sales in And moment impacted unfold want currency slide can half in to far. strong notable On seen quarter. we update although with take our January see XX, marked of performance have to first We month rebound Before the I an passing of provide a the year COVID-XX neutral are
are and we're back me restrictions to the normalized level hopeful more and Andreas. growth. that continue mobility improvement. closures turn As gradually a quite and we can regain with of the improving eased, promising environment in Should are markets improve, And categories that, impacted of global signs showing QX is to let