Skip to content
AnalystLens

International Flavors & Fragrances Annual Report, Year Ended Dec 31, 1995

Filing Date
Filed March 28, 1996
Period End
December 31, 1995
Security
IFF
In the record · 2016–202610-K1110-Q338-K151

IFF filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 151 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’17May ’17
  2. Material agreement8-K · Jan ’20Jan ’20
  3. Leadership change8-K · Feb ’22Feb ’22
  4. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K filed March 28, 1996. Cited figures are marked; the original filing is the authoritative source.

International Flavors & Fragrances Inc. (IFF) reported net sales of $1,439,487 thousanda (about $1.44 billion) for fiscal 1995, up from $1,315,237 thousand in 1994, with fragrance sales of $819,263 thousand and flavor sales of $620,224 thousand.

Net income rose to $248,817 thousandb, or $2.24 per share, compared with $226,022 thousand, or $2.03 per share, in 1994. Operating profit was $390,702 thousand, and the effective tax rate was 36.8%. Sales outside the United States represented approximately 70% of total sales in 1995, 1994 and 1993.

Cost of goods sold was 51.9% of sales, research and development expenses were 6.3%, and selling and administrative expenses were 15.1%. The balance sheet remained strong, with total assets of $1,534,269 thousandc, shareholders' equity of $1,116,560 thousand, and cash, cash equivalents and short-term investments of $296,933 thousand. Long-term debt was only $11,616 thousand, and the company stated it has virtually no long-term debt and expects to fund growth, capital expenditures and its share repurchase program from internal sources.

Cash provided by operations was $244,338 thousandd. The Board increased the annual cash dividend 9.7% to $1.36 per share in January 1996, and dividends declared for 1995 totaled $1.27 per share.

The company disclosed that it is named as a potentially responsible party at 11 waste sites, but management believes the amounts it will probably pay will not be material to its financial condition, results of operations or liquidity. Research and development spending was $90,846 thousand in 1995 and is expected to increase to approximately $97,000,000 in 1996.

02—Key points

Key Highlights

  1. Net sales rose 9% to $1,439,487 thousand in 1995, with fragrance sales up 6% to $819,263 thousand and flavor sales up 14% to $620,224 thousand.
  2. Net income increased 10% to $248,817 thousand, and earnings per share rose 10% to $2.24 from $2.03.
  3. Operating profit increased 10% to $390,702 thousand, and the effective tax rate was 36.8% versus 37.3% in 1994.
  4. Interest expense fell to $3,160 thousand from $13,470 thousand in 1994, mainly due to lower average interest rates in Brazil.
  5. The balance sheet is conservatively structured, with long-term debt of $11,616 thousand and shareholders' equity of $1,116,560 thousand against total assets of $1,534,269 thousand.
  6. The Board raised the annual dividend 9.7% to $1.36 per share in January 1996, and the company repurchased about 5.7 million shares under its program since 1992.
  7. Management expects 1996 research and development expenses of approximately $97,000,000 and gross additions to property, plant and equipment of approximately $100,000,000.

03—Questions

Frequently Asked Questions

  1. How did IFF's sales and profits perform in 1995?

    Net sales reached $1,439,487 thousand, up $124,250 thousand or 9% from 1994. Net income was $248,817 thousand, an increase of $22,795 thousand or 10%, and earnings per share were $2.24 compared with $2.03 in 1994. The filing states that sales were favorably affected by translating stronger foreign currencies into U.S. dollars during 1995.

  2. Does IFF carry significant debt?

    No. Long-term debt was $11,616 thousand at December 31, 1995, and bank loans were $12,185 thousand. The company states it has virtually no long-term debt and expects to fund its growth, capital expenditures and share repurchase plan from internal sources.

  3. How much does IFF pay in dividends?

    Cash dividends declared for 1995 totaled $1.27 per share, compared with $1.12 in 1994. In January 1996, the quarterly cash dividend was increased 9.7% to an annual rate of $1.36 per share. The company paid $138,048 thousand in dividends during 1995.

  4. What environmental and legal risks does IFF disclose?

    IFF is named as a potentially responsible party as a generator of waste materials at a total of 11 waste sites operated by third parties, mainly in New Jersey and Pennsylvania. Management believes the amounts it will probably pay for clean-up costs and damages will not be material, because other large potentially responsible parties are involved at most sites, payments will be made over an extended period, and insurers share defense and indemnity costs up to an agreed amount.

  5. How much does IFF spend on research and development?

    IFF spent $90,846 thousand on research and development in 1995, up from $81,369 thousand in 1994. The company expects these expenditures to increase to approximately $97,000,000 in 1996. Research and development expenses were 6.3% of sales in 1995, and the company employed 765 persons in these activities.

04—Continue

← View all 10-K filings