International Flavors & Fragrances Inc (NYSE:IFF) stock rose 0.85% (As on Nov 9, 10:59:58 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 21. Cash flow from operations for the third quarter was strong, increasing $711 million versus year-ago period, to $1.13 billion, and free cash flow defined as cash flow from operations less capital expenditures totaled $884 million. Net debt to credit adjusted EBITDA at the end of the third quarter was 4.1x.

IFF in the third quarter of FY 21 has reported the adjusted earnings per share of $1.47, beating the analysts’ estimates for the adjusted earnings per share of $1.39, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 141.7 percent to $3.07 billion in the third quarter of FY 21, beating the analysts’ estimates for revenue of $3.02 billion. The revenue growth is driven primarily by the incremental sales related to the merger with Nutrition & Biosciences (“N&B”). On a combined basis, sales rose 12% or 11% on a currency neutral basis, driven by mid-teen growth in Nourish and strong increases in Scent and Health & Biosciences. On a combined basis, adjusted operating EBITDA increased 4%, as strong sales growth and continued cost discipline more than offset inflationary pressures.

Moreover, Nourish Segment on a reported basis, third quarter sales were $1.66 billion and adjusted operating EBITDA was $327 million. On a combined basis, currency neutral sales increased 5% with growth across nearly all segments led by a double-digit increase in Home & Personal Care and strong increases in Cultures & Food Enzymes and Grain Processing. Health & Biosciences adjusted operating EBITDA was $151 million. Scent segment on a combined basis, currency neutral sales increased 9% against a strong high-single digit year ago comparison. Results were led by strong double-digit growth in Fine Fragrances, Cosmetic Actives and Fragrance Ingredients as well as modest growth in Consumer Fragrances. Pharma Solutions Segment on a combined basis, currency neutral sales were down 2% as continued challenges related to raw material availability and logistics have limited the company’s ability to meet strong customer demand.

For fiscal 2021, the company expects sales to be about $11.55 billion, adjusted operating margin to be about 2% and EBITDA margin to be 21%.