(Reuters) – International Flavors & Fragrances (NYSE:) cut its annual sales forecast and reported a fall in quarterly net income on Monday as soaring inflation raises its costs.
The company, which supplies food and pharmacy solutions to manufacturers, has seen the cost of raw materials and energy jump, while soaring inflation has forced end-users of its products to opt for cheaper alternatives.
The New-York based firm cut its full-year sales forecast, excluding anticipated Savory Solutions and Flavor Specialty Ingredients divestiture, to $12.3 billion compared with its prior forecast of about $12.5 billion.
Analysts on average had estimated the company to report full-year sales of $12.41 billion, according to Refinitiv data.
It sees second quarter net sales to be between $3.0 billion to $3.1 billion compared with analysts’ average estimate of $3.24 billion.
Net loss for the quarter ended March 31 was $9 million compared to a net profit of $246 million in the year-ago quarter.
The company’s revenue fell 6% to $3.03 billion from a year earlier. Analysts on average were expecting $2.99 billion, according to Refinitiv data.
International Flavors & Fragrances reported first-quarter adjusted net income of 87 cents per share, in-line with analysts’ average estimate.
This story originally appeared on Investing