Shares of International Flavors & Fragrances (NYSE:IFF) fell more than 7% in after-hours trading Tuesday after the company missed earnings expectations for the fiscal fourth quarter and announced a significant dividend cut.
The FQ4 earnings per share (EPS) were reported at $0.72, missing the consensus estimates of $0.78. Revenue came in at $2.7 billion, just above the projected $2.69 billion.
Looking ahead to the full fiscal 2024, IFF expects its revenue to be between $10.8 billion and $11.1 billion, short of the consensus projection of $11.43 billion.
Moreover, the company’s adjusted operating EBITDA for the year is anticipated to range from $1.9 billion to $2.1 billion.
The firm also declared a cut in its quarterly dividend to $0.40 per share, marking a substantial decrease of 50.6% from the previous dividend of $0.81. This adjustment sets the forward yield at 1.95%.
The dividend will be payable on April 10 to shareholders on record as of March 22, with the ex-dividend date scheduled for March 21.
«I am thrilled to join IFF at such an important and dynamic time for the company and our industry,» said IFF CEO Erik Fyrwald.
«In the fourth quarter, IFF delivered solid results, including a sequential improvement in volume and double-digit adjusted operating EBITDA growth on a comparable currency neutral basis.
As we look ahead, we recognize that the operating environment remains uncertain, yet we are cautiously optimistic that we can deliver improved financial results for our shareholders in 2024.»
Read more on investing.com