International Flavors & Fragrances Inc (NYSE:IFF) stock fell 0.64% (As on November 7, 11:43:51 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 23. Adjusted operating EBITDA1 for the third quarter was $506 million. On a comparable basis, currency neutral adjusted operating EBITDA declined 10% versus the prior-year period, as pricing and productivity gains were more than offset by lower volumes and unfavorable manufacturing absorption related to the Company’s inventory improvement program. Cash flows from operations at the end of the third quarter was $795 million, and free cash flow defined as cash flows from operations less capital expenditures totaled $405 million. This cash flow performance was driven primarily by a strong improvement in inventories, and led by a greater than $600 million reduction in inventory versus year-end 2022. Total debt to trailing twelve months net income at the end of the third quarter was 573.6x. Net debt to credit adjusted EBITDA1 at the end of the third quarter was 4.6x.

IFF in the third quarter of FY 23 has reported the adjusted earnings per share of 89 cents, beating the analysts’ estimates for the adjusted earnings per share of 76 cents. The company had reported 8 percent fall in the adjusted revenue to $2.82 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $2.76 billion. On a comparable basis, currency neutral sales decreased 3% versus the prior-year period, as growth in Scent and Health & Biosciences was more than offset by softness in Nourish and Pharma Solutions. Volume performance improved sequentially across nearly all businesses, yet remained challenged versus the year-ago period, and pricing continued to be strong.

Moreover, Scent Segment, on a reported basis, third quarter sales were $615 million. On a comparable basis, currency neutral sales1 increased 7% led by double-digit growth in Consumer Fragrance and a high-single digit increase in Fine Fragrance, with balanced contributions from volume and price.

International Flavors expects full-year revenue in the range of $11.3 billion to $11.6 billion. The company now expects to be at the mid to high end of its full year 2023 adjusted operating EBITDA guidance range of $1.85 billion to $2.0 billion driven primarily by favorable price to inflation and improved productivity. Based on current market foreign exchange rates, the Company expects that foreign exchange will have approximately 2% adverse impact to sales growth and approximately a 6% adverse impact to adjusted operating EBITDA growth in 2023.