IFF surges 6% on Q3 beat, extends cooperation agreement with Icahn Capital

IFF (IFF) shares jumped more than 6% after-hours following the company’s reported Q3 results, with EPS of $0.89 coming in better than the consensus estimate of $0.75. Revenue fell 8% year-over-year to $2.82 billion, beating the consensus estimate of $2.77B.

“In the third quarter we delivered both sales and profit ahead of our expectations. Our volume performance improved sequentially across the majority of our business, and we continued to benefit from our pricing actions and productivity initiatives. Our emphasis to drive working capital improvement yielded strong free cash flow generation, led by a significant reduction in inventory over the course of the year,” said CEO Frank Clyburn.

The company reconfirmed its full 2023-year guidance, expecting revenue to be in the range of $11.3-$11.6B, compared to the consensus of $11.4B.

Furthermore, the company announced the continuation of the cooperation agreement with Icahn Capital LP and its affiliates. Both parties have agreed to reappoint one Icahn representative and another mutually chosen director to IFF’s board for the upcoming 2024 proxy season.