International Flavors & Fragrances (IFF), an international creator of flavors and fragrances headquartered in the US, has reported a drop in its Q1 2012 net income by 4% to $81m, compared to a net income of $84m in the corresponding quarter of fiscal 2011.
The company has posted a net sales of $710.6m for the first quarter of 2012, a decrease of 1%, compared to sales of $714.2m for the same quarter a year ago.
For the first quarter of fiscal 2012, IFF noted a gross profit, as a percentage of sales, of 40.2%, compared with 41.6% in Q1 2011.
The company's operating profit for the quarter of 2012 also declined by $12m to $121m, including an expense of $2m linked with the previously-announced restructuring initiative.
IFF's research, selling and administrative (RSA) expenses for the first quarter of 2012, as a percentage of sales, dropped to 22.9% from Q1 2011.
The sales of the company's flavors business unit were up 3% for Q1 2012, compared to the sales of first quarter of 2011.
The unit's operating profit also increased by 1% or $1m, to $80m on back of volume growth, higher pricing and cost discipline.
International Flavors & Fragrances chairman and chief executive officer Doug Tough said that the company continued to execute its strategy and generated results broadly in line with its expectation.
"Going forward, we expect our business trends will improve over the course of the year as we continue to capitalize on our strong emerging market presence, healthy research and development pipeline, and profit improvement initiatives," Tough added.
International Flavors & Fragrances is a major creator of flavors and fragrances used in a wide variety of consumer products.
IFF has over 5,600 employees working in 32 countries across the globe.