International Flavors and Fragrances beats quarterly revenue, profit estimates

Aug 5 (Reuters) - International Flavors and Fragrances IFF.N topped Wall Street estimates for second-quarter revenue and profit on Tuesday, driven by resilient demand, higher prices and a shift to better-margin businesses.

The company has streamlined its portfolio as choppy demand in some food and beauty markets forced its customers to hold leaner inventories.

On Tuesday, the company, which disposed of its pharma solutions business earlier this year, said it would sell its soy crush, concentrates, and lecithin unit to U.S. grain trader and processor Bunge Global BG.N.

IFF did not disclose financial terms but said the operations generated about $240 million in revenue in 2024.

The company posted net sales of $2.76 billion for the quarter ended June 30, beating estimates of $2.70 billion, according to data compiled by LSEG. Its adjusted profit of $1.15 per share also topped expectations of $1.12.

Advance purchases by packaged food and beauty companies looking to beat higher prices due to tariffs also boosted sales at IFF in the reported quarter.

"We remain on track to deliver our 2025 commitments we outlined earlier this year, even as the operating environment has become more challenging," said CEO Erik Fyrwald.

IFF's shares were up nearly 5% in extended trading. They have fallen about 16% so far this year.

The New York-headquartered company maintained its annual sales and adjusted core profit targets.

The company also said it authorized a new share buyback program with a total value of $500 million.