International Flavors & Fragrances Inc (IFF) 2024 Q3 法說會逐字稿

At this time, I would like to welcome everyone to the IFF third-quarter earnings conference call. (Operator Instructions)

現在，我歡迎大家參加IFF第三季財報電話會議。（操作員指令）

I would now like to introduce Michael DeVeau, Head of Investor Relations. You may begin.

現在我想介紹投資者關係主管 Michael DeVeau。你可以開始了。

Thank you. Good morning, good afternoon, and good evening, everyone. Welcome to IFF's third-quarter 2024 conference call.

謝謝。大家早安，下午好，晚上好。歡迎參加 IFF 2024 年第三季電話會議。

Yesterday afternoon, we issued a press release announcing our financial results. A copy of the release can be found on our IR website at ir.iff.com. Please note that this call is being recorded live and will be available for replay.

昨天下午，我們發布了一份新聞稿，宣布了我們的財務表現。您可在我們 IR 網站 ir.iff.com 上找到此新聞稿的副本。請注意，本次通話正在現場錄音，可供重播。

During the call, we will be making forward-looking statements about the company's performance and business outlook. These statements are based on how we see things today and contain elements of uncertainty. For additional information concerning the factors that can cause actual results to differ materially, please refer to our cautionary statement and risk factors contained in our 10-K and press release.

在電話會議中，我們將對公司的業績和業務前景做出前瞻性陳述。這些表述是基於我們今天對事物的看法，包含不確定因素。有關可能導致實際結果大不相同的因素的更多信息，請參閱我們的 10-K 和新聞稿中包含的警告聲明和風險因素。

Today's presentation will include non-GAAP financial measures, which exclude those items that we believe affect comparability. A reconciliation of these non-GAAP financial measures to their respective GAAP measures is set forth in the press release.

今天的報告將包括非公認會計準則財務指標，其中不包括我們認為影響可比性的項目。新聞稿中列出了這些非 GAAP 財務指標與各自 GAAP 指標的對帳表。

With me on the call today is our CEO, Erik Fyrwald; and our Executive Vice President, CFO, and Business Transformation Officer, Glenn Richter. We will begin with prepared remarks and then take questions that you have at the end.

今天與我一起參加電話會議的還有我們的執行長 Erik Fyrwald；以及我們的執行副總裁、財務長兼業務轉型長 Glenn Richter。我們將從準備好的發言開始，然後在最後回答大家的問題。

With that, I would now like to turn the call over to Erik.

說完這些，我現在想把電話轉給艾瑞克。

Well, thank you, Mike, and hello, everyone. I'm glad to be here with you all today to discuss our solid third-quarter results. On today's call, I'll begin by providing an overview of our performance and the solid results across each of IFF's businesses, which gives us confidence to increase our full-year 2024 guidance.

好吧，謝謝你，麥克，大家好。我很高興今天能與大家在這裡討論我們穩健的第三季業績。在今天的電話會議上，我首先將概述我們的業績以及 IFF 各項業務的穩健業績，這使我們有信心提高 2024 年全年業績指引。

I will also provide commentary on our efforts to continue to strengthen IFF for now and the future. I will then turn the call over to Glenn, who will provide a more detailed outlook at our third-quarter financial results and discuss our outlook for the remainder of 2024, and we will then open up the call for questions.

我也會對我們現在和將來繼續加強IFF的努力發表評論。然後，我將把電話轉給 Glenn，他將更詳細地展望我們的第三季財務業績，並討論我們對 2024 年剩餘時間的展望，然後我們將開始提問。

If you go to slide 6, IFF delivered another quarter of solid results and significant bottom line improvement compared to a year ago. IFF achieved growth across all our business units, with notable volume improvement across the entire portfolio. The combination of improved market conditions and our global team's passion and drive to serve our customers and address evolving needs across end markets was a major contributor to our performance. The actions we have taken this year to strengthen our business and capital structure as well as our push to drive productivity in today's dynamic marketplace are producing encouraging results.

如果您看到第 6 張投影片，您會發現與一年前相比，IFF 又取得了一個季度的穩健業績，並且利潤有了顯著改善。IFF 所有業務部門均實現了成長，整個產品組合的銷售量顯著提升。市場條件的改善，加上我們全球團隊對服務客戶和滿足終端市場不斷變化的需求的熱情和動力，是我們績效的主要貢獻者。我們今年為加強業務和資本結構以及在當今充滿活力的市場中提高生產力而採取的行動正在產生令人鼓舞的成果。

Importantly, we delivered high single-digit volume growth with broad-based contributions across each of our businesses. Equally encouraging, comparable adjusted operating EBITDA grew by double digits in the third quarter, primarily driven by volume performance and productivity gains.

重要的是，我們透過各項業務的廣泛貢獻實現了高個位數的銷售成長。同樣令人鼓舞的是，第三季可比調整後營業 EBITDA 成長了兩位數，這主要得益於銷售表現和生產力的提升。

Considering our solid performance in the third quarter, specifically flowing through our over-delivery in the quarter as well as our continued cautiously optimistic outlook for the fourth quarter, we are modifying our full-year 2024 financial guidance. We are making solid progress against our targets and are confident we will achieve net sales between $11.3 billion and $11.4 billion, which is almost $100 million higher than our previous guidance range.

考慮到我們第三季的穩健表現，特別是本季的超額交付以及我們對第四季持續謹慎樂觀的前景，我們正在修改 2024 年全年財務指引。我們正在穩步推進我們的目標，並有信心實現 113 億美元至 114 億美元的淨銷售額，這比我們先前的指導範圍高出近 1 億美元。

For EBITDA, we are tightening the range and are now targeting the high end of our previously communicated range of $2.1 billion to $2.17 billion.

對於 EBITDA，我們正在縮緊範圍，目前的目標是達到我們先前公佈的 21 億美元至 21.7 億美元的高端。

Lastly, I am pleased to share that we remain on track to complete the previously announced divestiture of our Pharma Solutions business in the first half of 2025, marking another significant milestone in our portfolio optimization and deleveraging journey.

最後，我很高興地告訴大家，我們仍有望在 2025 年上半年完成之前宣布的製藥解決方案業務剝離計劃，這標誌著我們投資組合優化和去槓桿進程中的又一個重要里程碑。

Now, moving to slide 7, I want to highlight a few key achievements so far this year. While we continue to operate in a challenging end market environment, our performance over the last nine months has bolstered our position as a preferred innovation partner and growth enabler for our customers.

現在，轉到第 7 張投影片，我想強調今年迄今為止的一些主要成就。雖然我們繼續在充滿挑戰的終端市場環境中運營，但過去九個月的表現鞏固了我們作為客戶首選創新合作夥伴和成長推動者的地位。

Over the last nine months, currency-neutral sales grew 7% primarily driven by double-digit growth in Scent and high single-digit growth in Health & Biosciences. Comparable adjusted operating EBITDA has increased 19% year to date, fueled by our strong recovery in sales volume growth versus prior year lows and our productivity initiatives.

在過去的九個月中，剔除匯率因素，銷售額成長了 7%，主要得益於香味業務的兩位數成長以及健康與生物科學業務的高個位數成長。可比調整後營業 EBITDA 今年迄今已成長 19%，這得益於我們銷售量成長相對於前幾年低點的強勁復甦以及我們的生產力舉措。

Since announcing our new business-led operating model, operating philosophy and strategy refresh earlier this year, our focus on getting back to the basics is translating into stronger financial performance with greater end-to-end responsibility and accountability. With a reinvigorated mindset and a simplified structure, IFF is better positioned to navigate today's complex and fast-moving operating environment.

自今年稍早宣布新的以業務為主導的營運模式、營運理念和策略更新以來，我們一直致力於回歸基本面，從而實現更強勁的財務業績和更大的端到端責任感和問責制。憑藉煥然一新的思維方式和簡化的結構，IFF 能夠更好地應對當今複雜且快速變化的營運環境。

Now these steps also include sharpening our focus on key end markets and increasing our investments in high-growth areas for the benefit of our teams and our customers.

現在，這些措施還包括加強對關鍵終端市場的關注，並增加對高成長領域的投資，以造福我們的團隊和客戶。

In the third quarter, we also opened a creative center in Shanghai and have started to invest in additional creative centers in Mexico City and India. Together, these innovation hubs in important markets expand our global footprint and ensure we have the regional expertise required to serve customers on a more intimate level and address their unique needs.

第三季度，我們也在上海開設了一家創意中心，並開始在墨西哥城和印度投資更多創意中心。這些重要市場的創新中心共同擴大了我們的全球影響力，並確保我們擁有所需的區域專業知識，以便更貼心地服務客戶並滿足他們的獨特需求。

With our people at the heart of IFF's revised strategy, I'm equally excited to announce that our employee engagement has improved significantly over the last 10 months. As I've said before, empowering and enabling our global team to do what they do best is essential to our shared success as a global organization. And earlier this month, much of our global team had the opportunity to come together and celebrate IFF's 135-year legacy and 60th anniversary of being listed on the New York Stock Exchange. A true honor and reminder of the incredible legacy of this great company. I have no doubt that, that legacy of IFF will continue for the next 135 years.

我們的員工是 IFF 修訂策略的核心，我同樣高興地宣布，我們的員工敬業度在過去 10 個月中得到了顯著提高。正如我之前所說，授權並使我們全球團隊能夠做他們最擅長的事情對於我們作為全球組織的共同成功至關重要。本月初，我們全球團隊的大部分成員有機會齊聚一堂，慶祝 IFF 135 年的歷史和在紐約證券交易所上市 60 週年。這真是一種榮幸，也提醒我們這家偉大公司的輝煌遺產。我堅信，IFF 的傳承將在未來 135 年繼續延續。

But for now, I'll pass it on to Glenn for a closer look at our quarterly results. Glenn?

但現在，我將把它轉交給格倫，以便仔細查看我們的季度業績。格倫？

Thank you, Erik, and thank you all for joining us today. As Erik noted, IFF had another very solid quarter, achieving revenue just north of $2.9 billion, an increase of 9% on a comparable currency-neutral basis. We delivered broad-based growth across Nourish, Health & Biosciences, Scent and Pharma Solutions with notable volume improvements across all four business units. Our ongoing productivity initiatives also contributed to a 16% increase in comparable adjusted operating EBITDA in the quarter.

謝謝你，艾瑞克，也謝謝大家今天加入我們。正如艾瑞克所說，IFF 又度過了一個非常穩健的季度，實現營收略高於 29 億美元，以可比貨幣中性基礎計算增長了 9%。我們在營養、健康與生物科學、香味和製藥解決方案領域實現了廣泛成長，四個業務部門的銷售量均有顯著提升。我們持續的生產力措施也促使本季可比調整後營業 EBITDA 成長了 16%。

Building on our margin strength from the prior two quarters, we also realized another successful quarter of margin expansion with our comparable adjusted operating EBITDA margin of 19.4%, improving by 180 basis points versus Q3 of '23. Adjusted EPS, excluding amortization, was $1.04 in the quarter, increasing 17% versus the prior year period as strong profit performance and lower interest expense were mitigated by foreign exchange impacts in other expenses.

在前兩季利潤率強勁的基礎上，我們還實現了另一個成功擴大利潤率的季度，可比調整後營業 EBITDA 利潤率為 19.4%，較 23 年第三季度提高了 180 個基點。本季度調整後每股收益（不包括攤銷）為 1.04 美元，較去年同期增長 17%，因為強勁的利潤表現和較低的利息支出被其他費用的外匯影響所抵消。

Turning to slide 9, our improved performance was broad-based this quarter. Nourish comparable currency-neutral sales increased 7%, and we delivered an adjusted operating EBITDA increase of 18%. This was led by Flavors third consecutive quarter of double-digit growth and modest sales improvement in Functional Ingredients.

第 9 頁，本季我們的業績全面改善。以匯率中立計算，Nourish 可比銷售額成長了 7%，調整後營業 EBITDA 成長了 18%。其中，食用香精連續第三季達到兩位數成長，功能性成分銷售額也略有提升。

In Functional Ingredients, high single-digit volume growth was mostly offset by our pricing actions, which were very consistent with our planned price investments this year. Overall, we are very pleased with our Functional Ingredients recovery plan that has delivered three consecutive quarters of volume growth with strong expansion in margins and EBITDA.

在功能性成分方面，高個位數的銷售成長大部分被我們的定價行動所抵消，這與我們今年計劃的價格投資非常一致。總體而言，我們對我們的功能性成分復甦計劃感到非常滿意，該計劃連續三個季度實現了銷量增長，利潤率和 EBITDA 強勁增長。

Health & Bioscience achieved double-digit improvements in all of its businesses due to strong volume growth and productivity gains. H&B's comparable currency-neutral sales increased 12%, and we delivered comparable adjusted operating EBITDA of $173 million, a 15% increase from the year ago period. In Scent, double-digit increases in both Consumer Fragrance and Fine Fragrance as well as high single-digit growth in Fragrance Ingredients led to a strong quarter for both revenue and profit growth. Net sales in the quarter totaled $613 million, up 10% on a comparable currency-neutral basis, and we delivered adjusted operating EBITDA of $127 million, up 7% on a comparable basis.

由於銷量和生產率的強勁增長，健康與生物科學業務的所有業務均實現了兩位數的增長。H&B 的可比貨幣中性銷售額成長了 12%，我們實現了可比調整後營業 EBITDA 為 1.73 億美元，比去年同期成長了 15%。在香味方面，消費香精和高級香精均實現了兩位數的成長，而香精成分則實現了高個位數的成長，推動本季營收和利潤均實現強勁成長。本季淨銷售額總計 6.13 億美元，以可比貨幣中性基礎計算成長 10%，調整後營業 EBITDA 為 1.27 億美元，以可比基礎計算成長 7%。

Lastly, Pharma Solutions returned to growth, delivering sales of $256 million, an 8% increase on a comparable currency-neutral basis, while adjusted operating EBITDA surged to over 32% to $62 million on a comparable basis. This notable performance was driven by strong double-digit growth in industrial and mid-single-digit growth in core pharma. Once again, margin expansion was primarily driven by volume and productivity gains.

最後，製藥解決方案業務恢復成長，實現銷售額 2.56 億美元，以可比貨幣中性基礎計算增長 8%，而調整後營業 EBITDA 按可比基礎飆升超過 32%，達到 6200 萬美元。這一顯著表現得益於工業領域強勁的兩位數成長和核心製藥領域中個位數成長。再次，利潤率的擴大主要受產量和生產力提高的推動。

Turning to slide 10, cash flow from operations totaled $702 million year to date, a $366 million increase from last quarter, while CapEx year to date totaled $303 million or roughly 3.5% of sales. Our free cash flow position totaled $399 million year to date, a sequential increase from $136 million last quarter. Year to date, we also distributed $411 million in dividends to our shareholders. Our cash and cash equivalents totaled $569 million at the end of the third quarter, including $2 million in assets held for sale.

轉到第 10 頁，年初至今的經營現金流總計 7.02 億美元，較上一季增加 3.66 億美元，而年初至今的資本支出總計 3.03 億美元，約佔銷售額的 3.5%。我們的自由現金流狀況今年迄今總計 3.99 億美元，較上一季的 1.36 億美元季增。今年迄今，我們也向股東發放了 4.11 億美元的股利。截至第三季末，我們的現金和現金等價物總額為 5.69 億美元，其中包括 200 萬美元的持有待售資產。

Additionally, gross debt for the quarter totaled approximately $9.1 billion, with a net debt to credit adjusted EBITDA of 3.9 times, a decrease from 4.5 times at the end of '23. Our trailing 12-month credit-adjusted EBITDA totaled approximately $2.2 billion, largely in line with last quarter.

此外，本季的總債務總額約為 91 億美元，淨債務與調整後 EBITDA 比率為 3.9 倍，低於 23 年底的 4.5 倍。我們過去 12 個月的信用調整後 EBITDA 總計約為 22 億美元，與上一季基本持平。

As we look ahead to the fourth quarter and into the first half of '25, we remain committed to achieving our net debt to credit-adjusted EBITDA target of below 3 times, following the completion of our Pharma Solutions divestiture. This sale, which, again, we expect to complete in the first half of '25 reflects our near-term focus on optimizing our portfolio and improving our leverage position to further strengthen our capital structure.

展望第四季與25年上半年，在完成製藥解決方案業務剝離之後，我們仍致力於實現淨債務與信貸調整後EBITDA之比低於3倍的目標。我們預計此次出售將在 2025 年上半年完成，這反映了我們近期專注於優化我們的投資組合和提高我們的槓桿率，以進一步加強我們的資本結構。

On slide 11, I'd like to turn to our consolidated outlook for the full year '24. Given our improved financial and operational performance in the first three quarters of the year, tempered by some caution due to continued soft end consumer demand, we are modifying our full-year '24 financial guidance.

在第 11 張投影片上，我想談談我們對 24 年全年的綜合展望。鑑於今年前三個季度我們的財務和營運業績有所改善，以及由於終端消費需求持續疲軟而導致的一些謹慎態度，我們正在修改 24 年全年財務指引。

We now expect net sales to be in the range of $11.3 billion to $11.4 billion, up from our previously communicated range of $11.1 billion to $11.3 billion. We also now believe that volumes will be in the range of 5% to 6% growth versus our previous expectation of 3% to 5% increase. Pricing is also now expected to be roughly flat for the full year versus 1% growth previously as real pricing remains consistent with what we expected at the beginning of the year, but FX-related pricing in emerging markets is expected to be slightly less than originally expected.

我們現在預計淨銷售額將在 113 億美元至 114 億美元之間，高於我們先前公佈的 111 億美元至 113 億美元。我們現在也認為，銷量將成長 5% 至 6%，而我們先前預期的成長為 3% 至 5%。目前預計全年定價將大致持平，而先前預計為成長 1%，因為實際定價與我們年初的預期一致，但新興市場的外匯相關定價預計將略低於最初的預期。

Our outlook for the fourth quarter remains unchanged despite our performance in Q3, given macro trends as we closely monitor food, home and personal care end markets, order phasing due to potential customers' inventory adjustments at year-end, and a slightly tougher year-over-year comparison. On the bottom line, we now expect to deliver full-year '24 adjusted operating EBITDA near the high end of our previously communicated range of $2.1 billion to $2.17 billion.

儘管我們在第三季度表現良好，但我們對第四季度的展望保持不變，因為考慮到我們密切關注食品、家庭和個人護理終端市場的宏觀趨勢、由於年底潛在客戶的庫存調整而導致的訂單分階段以及略微艱難的同比對比。就底線而言，我們目前預計 24 年全年調整後營業 EBITDA 將接近我們先前公佈的 21 億美元至 21.7 億美元範圍的高端。

The high end of this range includes the upside we delivered in the third quarter and assumes continued productivity improvements, a greater level of annual incentive compensation given the relative strength of our performance versus budget and incremental reinvestments in the business with a focus on profitable long-term growth.

這一範圍的高端包括了我們在第三季度實現的上行空間，並假設生產率持續提高，考慮到我們的業績相對於預算的相對強勢，年度激勵薪酬水平將有所提高，並且我們將對業務進行增量式再投資，重點關注長期盈利增長。

Lastly, based on current market foreign exchange rates, we now expect that foreign exchange will have an approximately 3% full-year adverse impact to sales growth, assuming a euro-US dollar exchange rate of 1.12 at the time of our forecast was developed versus the previous expected range of 3% to 4%.

最後，根據目前的市場外匯匯率，我們預期外匯將對全年銷售成長產生約 3% 的不利影響，假設我們制定預測時歐元兌美元的匯率為 1.12，而先前預期的範圍為 3% 至 4%。

I'll now turn it back to Erik for closing remarks.

現在我將話題轉回給艾瑞克，請他作最後發言。

Thank you, Glenn. I am tremendously proud of what our teams have accomplished both in the last quarter and through 2024 to advance our operating philosophy, our strategic direction and our execution capabilities. Together, we are building a stronger, more resilient IFF backed by a global team whose relentless dedication to innovation and winning in the marketplace continues to energize me quarter after quarter.

謝謝你，格倫。我為我們的團隊在上個季度以及到 2024 年所取得的成就感到無比自豪，這些成就推動了我們的營運理念、策略方向和執行能力的提升。我們正在共同建立一個更強大、更具韌性的 IFF，並由一支全球團隊提供支持，該團隊對創新和在市場上取得成功的不懈奉獻持續為我帶來每個季度的活力。

Our solid performance this year is a direct reflection of the strength of our team and the shared buy-in for our strategic vision, and I am so grateful to work alongside such talented colleagues.

我們今年的出色表現直接反映了我們團隊的實力和對我們戰略願景的共同認同，我很感激能夠與如此才華橫溢的同事一起工作。

While I'm energized by our recent performance, I am clear-eyed and recognize that there is lots more work to be done. As Glenn mentioned, we remain committed to reinvesting in our businesses, particularly our highest return businesses over the long term to ensure we are well positioned to deliver sustainable, profitable growth to our shareholders.

雖然我對我們最近的表現感到振奮，但我也清醒地意識到還有很多工作要做。正如格倫所提到的，我們仍然致力於對我們的業務進行再投資，特別是長期回報率最高的業務，以確保我們能夠為股東提供可持續的盈利增長。

In the near term, however, we remain laser-focused on achieving our 2024 financial guidance, and encouraging our global teams to unleash the full potential of IFF with our incredible customers.

然而，在短期內，我們仍然專注於實現 2024 年的財務指導，並鼓勵我們的全球團隊與我們不可思議的客戶一起釋放 IFF 的全部潛力。

Thank you all for your ongoing support. I would like to now open the call for questions.

感謝大家一直以來的支持。現在我想開始提問。

(Operator Instructions) Josh Spector, UBS.

(操作員指示) Josh Spector，瑞銀。

Congrats on a solid quarter. I was wondering if you could walk sequentially to your 4Q guide versus 3Q. I guess when we look at it, it looks like a bit more than normal seasonality, and even counting for conservatism, it seems a little bit lower than what we would have expected. So what are the assumptions that you have behind that? And is there anything you're seeing now that maybe give you some pause on some of the trends or any incremental data you could share there?

恭喜您本季業績穩健。我想知道您是否可以按順序介紹第 4Q 指南和第 3Q 指南。我想，當我們觀察它時，它看起來比正常的季節性要多一點，即使考慮到保守主義，它似乎也比我們預期的要低一點。那麼您背後的假設是什麼呢？您現在看到的任何東西是否可能會讓您對某些趨勢或任何可以分享的增量資料有所停頓？

Thanks for the question, Josh. Let me just say that the fourth quarter has started as we expected, which is very encouraging. But the pattern we have seen in the last few quarters is a strong start and then a bit of deceleration through the quarter. And we've got limited visibility to December at this point.

謝謝你的提問，喬希。我只想說，第四季的開始正如我們預期的那樣，這非常令人鼓舞。但我們在過去幾季看到的模式是開局強勁，然後在本季略有減速。目前，我們對 12 月的預測有限。

So we are cautious given the potential that customers could adjust inventory at the end of the year, which has happened in the last few years. But let me just say that we want to make sure that we continue to deliver what we say we will deliver, but the quarter started off as expected.

因此，我們保持謹慎，因為客戶可能會在年底調整庫存，過去幾年就發生過這種情況。但我只想說，我們要確保繼續兌現我們的承諾，但本季的開始與預期一致。

Nicola Tang, BNP Paribas.

法國巴黎銀行的 Nicola Tang。

I wanted to ask a bit about Nourish. Can you help us understand what drove the sequential decline in margins despite the strong top line performance? And again, can you provide a bit more color between Flavors and Functional Ingredients? And how you're thinking about the progression into Q4 as well?

我想問一些關於 Nourish 的問題。您能否幫助我們理解，儘管營收表現強勁，但利潤率卻較上季下降的原因是什麼？再次，您能否在風味和功能性成分之間提供更多顏色？您對第四季的進展有何看法？

This is Glenn. Nicola, appreciate the question. Just as a reminder, typically, our high watermark for margin is Q2 for Nourish. Very positive mix as they go into the summer season here. What you see as it relates to the quarter-to-quarter progression between basically 2 and 3, and then ultimately, from 3 to 4, there will be a slight contraction in margin as well.

這是格倫。尼古拉，很感謝你提出這個問題。需要提醒的是，通常，我們的利潤高水位是 Nourish 的第二季。隨著這裡進入夏季，這種組合非常積極。您會看到，基本上從 2 到 3 逐季度遞增，最終從 3 到 4，利潤率也會略有收縮。

As it relates to 2 to 3, you have sort of mix more normalizes. And then secondarily, as we've mentioned that we are increasing our investments in the business. So those are beginning to basically show through relative to the margin as well. So as you look out into Q4, you should expect because of the seasonality, i.e., lower volumes for Nourish in Q4, that we will have some degradation of 50 to 90 basis points in terms of margin quarter to quarter.

由於它與 2 到 3 相關，因此您可以混合更多規範。其次，正如我們所提到的，我們正在增加對該業務的投資。因此，這些也開始從根本上體現相對於利潤率的體現。因此，展望第四季度，您應該預料到，由於季節性因素（即第四季度 Nourish 的銷量較低），我們的利潤率將環比下降 50 到 90 個基點。

Ghansham Panjabi, Baird.

甘沙姆·潘賈比，貝爾德。

I know it's still early, but could you give us a sense as to how you're thinking about 2025 at this point as it relates to some of the high-level variances such as volumes, price, maybe compensation expense and also cost savings flow through?

我知道現在還為時過早，但您能否告訴我們，您目前對 2025 年的看法，因為它與一些高級差異有關，例如數量、價格、可能的補償費用以及成本節約流程？

Thanks, Ghansham. First of all, it's too early to give you any specifics. And as you know, we normally guide in February. And right now, we're finalizing our budgeting process, but I will make a couple of comments. First of all, as you'll recall, we will have over $100 million in incentive comp reset in 2025, which is a positive for next year.

謝謝，Ghansham。首先，現在透露具體細節還為時過早。如您所知，我們通常在二月進行指導。目前，我們正在完成預算流程，但我將發表幾點評論。首先，您可能還記得，我們​​將在 2025 年重置超過 1 億美元的激勵補償，這對明年來說是一個利好。

And then let me just add that we continue to work really hard on customer focus, on driving innovation and productivity to drive our performance. And I got to say that nine months in, I love how our teams are stepping up and driving performance, driving execution.

然後，我還要補充一點，我們將繼續努力以客戶為中心，推動創新和生產力，以提高我們的業績。我必須說，九個月以來，我很高興看到我們的團隊不斷進步，提高績效，推動執行。

John Roberts, Mizuho.

瑞穗的約翰羅伯茲。

First, just to check on -- are you on track for reporting Flavors separately from Functional Ingredients next year? And then where was the incremental volume strength in the quarter. Or actually in the fourth quarter as well, I guess, it's the second-half volume strength? And do you think that was more driven by promotional activity by your customers and some easing in their pricing?

首先，只是為了檢查一下——您是否計劃明年將風味與功能性成分分開報告？那麼本季的增量強度如何？或者實際上在第四季也是如此，我猜這是下半年的銷售優勢？您是否認為這更多的是由顧客的促銷活動和價格的放寬所推動的？

Yes, it's a great question, John. So relative to where we are with separation of Functional Ingredients and the Flavors business, we are on track to basically have that set up as two completely separate businesses. Actually, most of the organizational changes have been announced and implemented. We will start reporting it starting next year, which means in the first quarter. So May of next year is when you'll see the first cut between the businesses, and we plan on providing some historical context as well.

是的，這是一個很好的問題，約翰。因此，相對於我們將功能性成分和調味品業務分開的現狀，我們基本上打算將其設定為兩個完全獨立的業務。事實上，大部分組織變革都已經宣布並實施。我們將從明年開始報告，也就是第一季。因此，明年 5 月您將會看到兩家企業之間的首次裁員，我們也計劃提供一些歷史背景。

And just to add to that, we have announced internally. We didn't see a need for a press release, but internally, that we have named two presidents, a President of what will now call Taste, and a President of what we'll call Food Ingredients.

補充一下，我們已經內部宣布過了。我們認為沒有必要發布新聞稿，但在內部，我們已經任命了兩位總裁，一位負責現在稱為“味道”的部門，另一位負責我們現在稱為“食品配料”的部門。

Yes. And then relative to the performance in the third-quarter volumes, we actually pretty much -- it was fairly broad-based, John, across all the businesses. Pharma was right on track with the rest of the businesses generally sort of exceeded expectations. We had very strong Flavors, very strong Scent, and certain businesses within H&B are very, very strong. We believe it is a combination -- as you're well aware, the end consumer, there's very few signs that the consumer is getting any stronger in terms of what's going on in terms of consumption.

是的。然後相對於第三季的表現，我們實際上相當廣泛，約翰，涵蓋了所有業務。製藥業的發展與其他業務一樣順利，整體而言超出了預期。我們擁有非常濃鬱的口味和香氣，而且 H&B 內部的某些業務也非常非常強勁。我們認為這是一種結合——正如你們所了解的，對於最終消費者來說，從消費方面來看，很少有跡象表明消費者的消費能力有所增強。

But we do think that we're picking up share and winning in the marketplace. And that's a function of sort of the renewed focus on innovation, commercial excellence across the businesses and the new operating model. As Erik had mentioned, the start as it relates to Q4, we're just being a little more cautious because we had been surprised in December of the last couple of years.

但我們確實認為，我們正在獲得市場份額並取得勝利。這是對創新、整個企業的商業卓越以及新營運模式的重新關注的結果。正如艾瑞克所提到的，就第四季而言，我們會更加謹慎，因為過去幾年 12 月的情況讓我們感到驚訝。

Laurence Alexander, Jefferies.

勞倫斯·亞歷山大（Laurence Alexander），傑富瑞（Jefferies）。

This is actually Dan Rizzo on for Laurence. Given the progress you've made this year, what do you think the right margin structure and ROIC is for your portfolio longer term once Pharma is gone?

這實際上是 Dan Rizzo 代替 Laurence 上場。考慮到您今年的進展，一旦製藥業消失，您認為長期來看您的投資組合的正確利潤結構和投資報酬率應該是怎麼樣的？

The way I would answer that is we are focused on driving continuous improvement in both margins and ROIC, and we're tracking them very closely by business now. And the levers that we have, driving customer focus, driving innovation and productivity are all helping us gain confidence that we'll be able to continuously improve both.

我的回答是，我們專注於推動利潤率和投資回報率的持續改善，並且我們目前正密切關注業務。我們擁有的推動客戶關注、推動創新和提高生產力的槓桿，都在幫助我們獲得信心，相信我們能夠持續改善這兩方面。

Also, I'd just add that we are prioritizing capital allocation to our higher margin and higher return businesses, Scent; Flavors, now, we're going to call it Taste; and Health & Biosciences. And we continue to have strong emphasis on driving Functional Ingredients turnaround, which we're making good progress on. So that's -- we are focused on these two metrics, and we're doing the things to continuously improve over time.

另外我想補充一點，我們優先將資本分配給利潤率更高、回報更高的業務，即 Scent；風味，現在，我們稱之為味道；以及健康與生物科學。我們持續高度重視推動功能性成分業務的轉型，目前我們已取得良好進展。所以，我們專注於這兩個指標，並且正在採取措施不斷改進。

Patrick Cunningham, Citi.

花旗銀行的派崔克‧坎寧安 (Patrick Cunningham)。

Is there any update to the adjusted free cash flow guidance for the year. I think last time you guided to $600 million. Should that trend higher now that we're at the higher end of the guide? Or is it mostly offset by the working capital or other items?

今年調整後的自由現金流指引有什麼更新嗎？我認為上次您的指導價是 6 億美元。既然我們現在已經處於指南的高端，那麼這種趨勢是否會更高？還是大部分是由營運資金或其他項目抵銷的？

Yes. So two numbers up, I'll give you, Patrick. One is our reported free cash flow -- I'm sorry, our full-year free cash flow, we expect to be basically largely unchanged versus previous guide. You sort of already mentioned the reason why the earnings trajectory is higher, but we also are building more working capital, which is almost exclusively related to higher sales, so it's sitting in receivables. So net-net, we're sort of in a neutral position for the full year. So no change in the forecast.

是的。所以我給你兩個數字，派崔克。一是我們報告的自由現金流——抱歉，我們預計全年自由現金流與之前的指南相比基本保持不變。您可能已經提到了盈利軌跡更高的原因，但我們也正在建立更多的營運資本，這幾乎完全與更高的銷售額有關，因此它處於應收帳款中。因此，整體而言，我們對全年的預期是處於中立狀態。因此預測沒有變化。

Kristen Owen, Oppenheimer.

奧本海默的克里斯汀歐文。

Just wanted to double-click on Functional Ingredients. Can you talk about what you're seeing in terms of order activity coming just into the contracting period? And if you could provide an additional update on the Functional Ingredients turnaround.

只需雙擊功能性成分。您能談談在合約期間剛開始時訂單活動的情況嗎？您是否可以提供有關功能性成分轉變的更多更新資訊？

Yes, this is Glenn. Thanks, Kristen, for the question. The reality is we don't typically have a long order book. And certainly, there's very -- this is essentially zero into next year. The contracting period largely is around pricing with our relationships from the standpoint.

是的，這是格倫。謝謝克里斯汀提問。實際情況是，我們通常不會有大量訂單。當然，到明年，這個數字基本上是零。從角度來看，簽約期主要圍繞著與我們的關係定價。

It is going extremely well. We feel that this is a byproduct of the now two-year work we've had in place to basically remediate the business. So we are seeing very, very good progression in the business and expect it to continue into next year. And there's nothing in the annual negotiation process that suggests that we're not in a very good place to sustain the momentum within the business.

一切進展順利。我們認為這是我們為根本性地補救業務而進行的兩年工作的副產品。因此，我們看到業務取得了非常非常好的進展，並預計這種勢頭將持續到明年。年度談判過程中沒有任何跡象顯示我們無法很好地維持業務發展勢頭。

As a reminder, we have taken a tremendous amount of effort to fix our service issues starting two-plus years ago. Our service levels are extremely high. Secondarily, we reinvested deflation and giving price back to basically be much, much more competitive in the marketplace. Third, we basically reenergized our sales pipeline to work very closely with the front line, and the innovation resources to identify how to win customers back and win new business. That has been working extremely well.

提醒一下，從兩年多前開始我們就付出了巨大的努力來解決我們的服務問題。我們的服務水準極高。其次，我們重新投資通貨緊縮並回饋價格，以便在市場上更具競爭力。第三，我們基本上重新啟動了我們的銷售管道，與第一線緊密合作，並利用創新資源來確定如何贏回客戶並贏得新業務。效果非常好。

And those collective efforts have actually resulted in us in having mid-single-digit volumes this year. We feel like we've gained back about half of the lost volume at this point. And at the same time, we've been expanding margins very -- both gross margin and ultimately, EBITDA year-over-year growth very, very well.

這些共同的努力實際上使我們今年的銷售量達到了中等個位數。我們感覺目前我們已經恢復了大約一半的損失量。與此同時，我們的利潤率一直在不斷提高——毛利率和 EBITDA 的年增率都非常非常好。

The last piece is we are in the beginning phases of a fundamental restructure of our global supply chain footprint. That means actually making sure that we have the assets in the best locations from a cost perspective and the best supply chain to support that. That will take several years, but we think that's the final step as we've committed to in the past of moving this business back to the mid-teens range in terms of overall EBITDA margins. We're at circa 12%, 13% this year, but we should be able to get to 15% plus in the coming years. So we feel very good.

最後一點是，我們正處於全球供應鏈足跡根本重組的初始階段。這實際上意味著確保我們從成本角度擁有位於最佳位置的資產，並擁有最佳的供應鏈來支持這一點。這將需要幾年時間，但我們認為這是最後一步，因為我們過去曾承諾將這項業務的整體 EBITDA 利潤率恢復到十幾歲的水平。今年我們的比例大約是 12%、13%，但未來幾年我們應該可以達到 15% 以上。因此我們感覺非常好。

The team has done a phenomenal job, and has been working nonstop to basically make this happen. We feel very good with the businesses.

該團隊表現出色，並一直不停地努力以實現這一目標。我們對這些業務感到非常滿意。

David Begleiter, Deutsche Bank.

德意志銀行的 David Begleiter。

Erik, nine months into your tenure, how would you characterize the progress you've made on the R&D organization and the innovation pipeline? And what could that mean for new product sales in '25 and even '26?

艾瑞克，在您任職九個月後，您如何描述在研發組織和創新管道方面的進展？這對於25年甚至26年的新產品銷售又意味著什麼？

Thanks for the question, David. And I feel very good about the progress we're making. First of all, let me start by saying that each of our BUs have developed very strong strategies with very clear priorities. And now with R&D embedded in the BUs, we can already feel both the power and the energy created by the focus and the better connection of our R&D efforts to customer needs.

謝謝你的提問，大衛。我對我們所取得的進展感到非常高興。首先，我要說的是，我們的每個業務部門都制定了非常強大的策略，並且有非常明確的優先事項。現在，隨著研發融入各個業務部門，我們已經可以感受到由關注以及將研發工作與客戶需求更好地結合而產生的力量和能量。

And I tell you, it energizes our R&D people and it makes the whole system work better. And just one example, our Scent team now has a very clear plan and is already taking actions to strengthen our pipeline, both naturals, synthetic chemistry and biotech molecules. So it's great to see that.

我告訴你們，它為我們的研發人員注入了活力，使得整個系統運作得更好。舉個例子，我們的香味團隊現在有一個非常明確的計劃，並且已經採取行動來加強我們的產品線，包括天然物質、合成化學和生物技術分子。我很高興看到這一點。

What I would say on the -- in terms of the impact is I think that the main impact of the new projects will be in 2026 and beyond. But I can tell you that the energy is already helping now, and will help in 2025 in terms of seeing those -- that pipeline strengthen and having discussions with customers and also our sales force energized by that, I think will benefit us -- it's already benefiting us, and I think we'll have benefits in 2025, but the specific project benefits will really come in '26 and beyond.

就影響而言，我想說的是，我認為新項目的主要影響將在 2026 年及以後。但我可以告訴你，這種能源現在已經開始發揮作用，並且將在 2025 年繼續發揮作用，因為我們將看到管道得到加強，與客戶進行討論，並且我們的銷售團隊也將因此而充滿活力，我認為這將使我們受益——它已經使我們受益，我認為我們將在 2025 年受益，但具體項目的收益將在以後真正的收益將在以後真正顯現。

Salvator Tiano, Bank of America.

美國銀行的薩爾瓦多‧蒂亞諾 (Salvator Tiano)。

I just wanted to ask a little bit about the disconnect between the very strong organic growth you're reporting and the more -- and the slower growing end market. So can you bridge a little bit the degree of outperformance that you have across the board versus slower consumer demand.

我只是想問一下您所報告的非常強勁的有機增長和增長較慢的終端市場之間的脫節。那麼，您能否稍微彌補一下您整體表現優異與消費需求放緩之間的差距？

And specifically on Scent, it's been on a roll for several quarters. And that's where I think your customers are also doing well in Fine Fragrance. But how long can this extremely strong growth last?

特別是在 Scent 方面，它已經連續幾個季度保持著良好的發展勢頭。我認為您的客戶在高級香水領域也做得很好。但這種極度強勁的成長態勢能持續多久？

Yes. Good question. One, just to remind, obviously, everybody is that there is a bounce back effect this year from the lack of destocking. So there was a mathematical sort of performance that the entire industry is seeing as we overlap last year. So that's obviously explained some of the incremental growth above what is happening at the consumer level.

是的。好問題。首先，要提醒的是，顯然，大家都知道，由於今年沒有去庫存，所以會出現反彈效應。因此，當我們回顧去年的情況時，整個行業都看到了一種數學上的表現。所以這顯然解釋了消費者層面之上的部分增量成長。

Fine Fragrance continues to be a unique case. As everyone is well aware, over the last several years, since COVID, the category has exploded. We believe that, that is a function of multiple things happening at the consumer level, a plethora of new brands being launched. The impact of social media, ultimately, the digital channel has become a very, very meaningful channel for the growth in the business as well. And the use of Fine Fragrance has expanded beyond sort of a special occasion as a result of that.

高級香水仍然是一個獨特的案例。眾所周知，自新冠疫情以來，過去幾年裡，該類別呈爆炸式增長。我們相信，這是消費者層面發生的多種事件的結果，大量新品牌的推出。社群媒體的影響最終使數位管道成為業務成長非常有意義的管道。因此，高級香水的用途已不再僅限於特殊場合。

We, like everybody in the industry, have seen that hitting the Fine Fragrance space.

我們和業內所有人一樣，已經看到這種情況正在影響高級香水領域。

We believe that, that will continue to some degree that there still are lots of new channels and new brand opportunities and certainly regional opportunities. I would also say that we believe because we do track how we're doing in the market versus others is we are winning share.

我們相信，這種情況會在某種程度上持續下去，仍有許多新管道、新的品牌機會，當然還有區域機會。我還想說，我們相信，因為我們確實追蹤了我們在市場上相對於其他公司的表現，所以我們正在贏得份額。

So as Erik had mentioned, the investments we have been making relative to new geographies, adding perfumers, adding new creative centers, et cetera, is the other way that basically we're winning in the business, and we're very committed to continuing to do that, not only within the Scent business, but more broadly across the higher-growth and higher-margin businesses within IFF. So I appreciate the question.

正如艾瑞克所提到的，我們在新的地區進行的投資，增加調香師，增加新的創意中心等等，基本上是我們在業務中獲勝的另一種方式，我們非常致力於繼續這樣做，不僅在香味業務範圍內，而且更廣泛地涵蓋 IFF 內更高增長和更高利潤的業務範圍。我很感謝你提出這個問題。

Kevin McCarthy, Vertical Research Partners.

凱文·麥卡錫（Kevin McCarthy），垂直研究夥伴。

Can you discuss your expectations for price/cost dynamics in the coming quarters? And related to that, would you touch on tariff scenarios, how do you think about potential for higher tariffs? Maybe you could talk about the experience in the past, and how you're planning to manage through various international trade scenarios moving forward.

您能談談對未來幾季價格/成本動態的預期嗎？與此相關，您能否談談關稅情景，您如何看待提高關稅的可能性？也許您可以談談過去的經歷，以及您計劃如何應對未來的各種國際貿易情況。

Generally, our price/cost dynamic is flattish. We have seen throughout this year some continued deflation, not to the degree of last year. And our early outlook for next year is things are fairly stable. We believe there are certain parts of the basket that increases, but others some level of deflation.

整體來說，我們的價格/成本動態比較平穩。我們今年看到了持續的通貨緊縮，但程度沒有去年那麼嚴重。我們對明年的早期預測是情況相當穩定。我們相信，籃子中的某些部分將會增加，但其他部分將會出現一定程度的通貨緊縮。

So generally, the price environment, in our view, is fairly static, and the price/cost dynamic is fairly static as a byproduct of that. Difficult to forecast at this point in time regarding tariffs. There is obviously some history here with the first Trump administration. That was more focused as it relates to food in China as one country versus broad-based. So it depends upon what, if anything, ultimately happens in the arena of tariffs.

因此，總體而言，我們認為價格環境是相當靜態的，價格/成本動態也是相當靜態的。目前很難預測關稅。顯然，這與第一屆川普政府有一些歷史。這是因為其更集中於與中國作為一個國家的食品相關，而非廣泛涉及。因此這取決於關稅領域最終發生什麼。

So it is something that maybe yesterday, people weren't very focused on. But as of this morning, members of the team are very focused on.

因此，這也許是昨天人們還不太在意的事情。但截至今天早上，團隊成員都非常集中精力。

I would note that when there was basically escalation of tariffs in China, it's probably intuitively good for our business relative to our footprint, global footprint, our ability to react. As you're well aware, there's a more competitive environment within China. So those tariffs could actually intuitively be advantageous to our overall business broadly. But obviously, stay tuned. And as we think about kind of next year and provide guidance in February, there'll probably be more to speak about it at that point.

我想說的是，當中國提高關稅時，這對我們的業務、全球影響力和應對能力來說可能直觀上是有利的。如您所知，中國的競爭環境更加激烈。因此，這些關稅實際上可能直觀地有利於我們的整體業務。但顯然，請繼續關注。當我們考慮明年的情況並在二月提供指導時，到那時可能會有更多關於此的討論。

Mike Sison, Wells Fargo.

富國銀行的麥克·西森。

Nice quarter and outlook. Just on the fourth quarter, if you're at the high end of your outlook range, it does imply that EBITDA will be down year over year despite positive growth. Just wanted a little bit of color on that? And is that more conservatism?

良好的季度和前景。僅在第四季度，如果你處於預期範圍的高端，這確實意味著儘管 EBITDA 實現了正增長，但同比仍將下降。我只是想加點色彩嗎？這是否更加保守？

And then a quick follow-up. When you think about '25, a lot of companies thus far in chemical, and I've noted the first half, not likely better than the second half. Could you sort of talk about what you're seeing from customers? And do you think they're feeling better about next year? About the same? Any sort of green shoots of improvement there? And just kind of wanted to leave it at that.

然後快速跟進。當你想到25年時，許多化學公司迄今為止表現良好，而且我注意到上半年的情況可能不會比下半年更好。您能否談談您從客戶那裡看到了什麼？您認為他們對明年的前景會感覺更好嗎？差不多？那裡有任何改善的跡象嗎？我就想就這樣結束這一切。

Yes. So Mike, I'll take the first part, which is the year over year. We were $440 million -- we were $460 million on a reported basis last year. As a reminder, we have FX and then portfolio changes from last year as well that actually turns that into around a $440 million like-for-like. And as you pointed out, our guide currently would get us around $440 million for this year as well.

是的。麥克，我將講第一部分，即同比情況。我們的利潤為 4.4 億美元 — — 去年報告的數字是 4.6 億美元。提醒一下，與去年相比，我們的外匯和投資組合也發生了變化，實際上比去年同期變化達到了 4.4 億美元。正如您所指出的，我們目前的預期是今年我們的收入也將達到 4.4 億美元左右。

It's very simple, honestly. It has all to do with our incentive compensation. As you know, last year, on the full year, we were below 100%. As we've mentioned, we are materially above 100% in excess of an incremental $100 million of variable comp. That is a nearly $40 million year-over-year impact in the quarter alone.

說實話，這非常簡單。這一切都與我們的激勵薪酬有關。如您所知，去年全年我們的獲利能力低於 100%。正如我們所提到的，我們的可變薪酬增量已大大超過 1 億美元的 100%。光是本季就比去年同期造成了近 4,000 萬美元的年比影響。

So that sort of normalized impact is a huge, huge impact. The rest of the equation is basically productivity is offsetting basically some modest level of inflation in investment. So it's really that incentive comp growth year over year, that's the biggest piece.

所以這種正常化的影響是巨大的。該等式的其餘部分基本上是生產力抵消了投資中一定程度的通膨。因此，激勵薪酬逐年成長才是最重要的部分。

And then, Mike, to the second part of your question, we're not really seeing strong green shoot comments yet from our customer base for 2025. But the good news is that we're taking aggressive actions to strengthen our position by getting back to basics, as we said before, heavy customer focus, heavy focus on innovation.

然後，麥克，關於你問題的第二部分，我們還沒有真正看到客戶群對 2025 年出現強勁的綠芽評論。但好消息是，我們正在採取積極行動，回歸根本，加強我們的地位，正如我們之前所說的，高度重視客戶，並高度重視創新。

And by the way, as customers see slowing end markets, what they want to do is have more innovation so that they can drive growth relative to the market. And that's when they come to us, and that's a good thing.

順便說一句，當客戶看到終端市場放緩時，他們想要做的是進行更多創新，以便能夠推動相對於市場的成長。這時候他們就會來找我們，這是一件好事。

And I'll just also say we're doing lots of customer business, lots of focus on customers and co-creation with them of leading products around the world. In the third quarter, I personally visited with other executive team members 11 countries and representing over 4 billion people. And it was just great. And by the way, up until now, I've visited about 40% of our customer base and just see how our people are in front of our customers. And I feel a lot of energy with our teams in front of customers, whether it's our salespeople, with our perfumers or our flavorists or our biotech scientists co-creating products.

我還要說的是，我們正在進行大量客戶業務，非常關注客戶，並與他們共同創造全球領先的產品。第三季度，我與其他執行團隊成員親自訪問了11個國家，代表了40多億人口。這真是太棒了。順便說一句，到目前為止，我已經拜訪了大約 40％ 的客戶群，了解了我們的員工在客戶面前的表現。我在客戶面前感受到我們團隊的強大能量，無論是銷售人員、調香師、調味師或共同創造產品的生物技術科學家。

And you feel the energy, and I would love it if you guys could feel the energy. But just as an example, I was just in India and Indonesia, and was super excited to not only hear about our double-digit growth across Scent, Flavors, Health & Biosciences and Food Ingredients, but met with customers that are very bullish about their growth in these high-growth markets, but also about the innovation that we're bringing with these creative centers to help them grow. So tough market, but I believe that we're putting in place the right things to grow above market.

你們感受到了這種能量，如果你們也能感受到這種能量我會很高興。舉個例子，我剛剛在印度和印度尼西亞，非常高興地聽到我們在香味、香精、健康和生物科學以及食品配料領域實現了兩位數的增長，還見到了對這些高增長市場的增長非常樂觀的客戶，以及我們通過這些創意中心帶來的幫助他們成長的創新。市場如此艱難，但我相信我們正在採取正確的措施，以實現超越市場的成長。

Mark Astrachan, Stifel.

馬克‧阿斯特拉坎 (Mark Astrachan)，Stifel。

I wanted to go back to the question on end demand, and maybe ask it in a bit of a different way. One is, if you could just maybe try to give some framework around how much of the sales growth is from restocking?

我想回到關於最終需求的問題上，也許可以用稍微不同的方式來問。一是，您是否可以嘗試給出一些框架，說明銷售成長有多少來自於補貨？

And then more specifically, we all can look at the big multinational public companies' volume trends and you can see it's clearly lower even if roughly half of your sales growth is attributable to destocking. So I guess the question is, are you seeing more growth out of local and regional companies and private label relative to some of these big multinationals and maybe there's a bit of a shift there, a reversal relative to recent years?

更具體地說，我們都可以看看大型跨國上市公司的銷售趨勢，你會發現，即使大約一半的銷售成長歸因於去庫存，銷售趨勢也明顯較低。所以我想問題是，相對於一些大型跨國公司，您是否看到本地和區域公司以及自有品牌的成長更快，或者與最近幾年相比是否存在一些轉變或逆轉？

And then just remind us how you think about whether the customer is a local regional private label compared to a multinational. I recall that you're fairly agnostic. I just want to make sure that's the case.

然後請提醒我們，您如何看待客戶是本地區域自有品牌還是跨國公司。我記得你是個相當不可知論者。我只是想確認情況確實如此。

I would start by saying that both are very, very important to us. And the multinationals that are focused on innovation and driving superior products are wanting more of our innovation, and we're doing more projects with them, and that's helpful to their growth and to our growth. But also the regionals and the locals are also growing, and we're I think strengthening our strategies and our capabilities to serve them locally. And that's what I'm seeing around the world. That's why we're building more creative centers to service both the global companies, but also the locals -- the regionals and the locals.

首先我想說，兩者對我們來說都非常非常重要。專注於創新和推動優質產品的跨國公司希望獲得我們的更多創新，我們正在與他們合作更多項目，這對他們的成長和我們的成長都有幫助。但地區性和地方性企業也在發展，我認為我們正在加強我們的策略和能力，為他們提供本地服務。這就是我在世界各地看到的情況。這就是為什麼我們要建立更多的創意中心，不僅為全球公司服務，也為本地公司服務——區域性和本地性。

So we're seeing growth opportunities across. But of course, there are some geographies and there are some segments that are growing faster than others. But we're I think, now very clear on making sure that we're able to grow in all three customer segments.

因此，我們看到了全面的成長機會。但當然，有些地區和有些領域的成長速度比其他地區和領域更快。但我認為，我們現在非常清楚確保我們能夠在所有三個客戶群中成長。

Lauren Lieberman, Barclays.

巴克萊銀行的勞倫·利伯曼。

I just want to talk about reinvestment rates because I think initially, seeing the implied EBITDA for 4Q, and I know you just clarified and said it's more or less all the incentive comp dynamic. There had been a thought that some of it was reinvestment, reinvestment ahead of next year pulling some activity forward, which is completely typical to see from companies when there's flexibility.

我只想談談再投資率，因為我認為最初看到第四季度的隱含 EBITDA，我知道你剛剛澄清並說這或多或少都是激勵補償動態。人們曾認為其中一部分是再投資，明年之前的再投資會推動一些活動提前進行，當公司具有靈活性時，這種情況很常見。

So I wanted to talk a bit about reinvestments need for next year. This year, there was a lot of flexibility created in the P&L as you had the restocking dynamics and strength on top line. So how should we think about reinvestment next year?

所以我想談談明年的再投資需求。今年，由於補貨動力和營收實力的增強，損益表具有了極大的彈性。那我們該如何考慮明年的再投資呢？

And Erik, as you've gotten closer and closer and closer to the business, and looking to build back R&D, build back capabilities and set the stage for a big pipeline in '26. How should we think about rates of reinvestment spending in '25 versus what we saw in '24?

艾瑞克，你越來越接近業務，並希望重建研發部門，重建能力，為26年的大型管道奠定基礎。我們該如何看待25年的再投資支出率與24年的再投資支出率？

Yes. Lauren, I'll start and hand it over to Erik. I'll just sort of clarify the '24 impact as we communicated last time, which is the same, it's $20 million in the P&L. So it's roughly $10 million and $10 million Q3, Q4. So that will annualize by another $20 million in the first half of next year. That's independent of any additional level, but that's our starting point.

是的。勞倫，我先開始，然後把它交給艾瑞克。我只是想澄清一下我們上次溝通過的 24 年影響，也就是損益表中的 2000 萬美元。因此第三季和第四季的營收分別約為 1,000 萬美元和 1,000 萬美元。因此明年上半年的年化收入將再增加 2,000 萬美元。這與任何附加層級無關，但這是我們的起點。

And then from there, we're planning on continuing to grow our top line. And with that, be able to invest the same percentage of sales in our innovation and other areas to drive growth. And that $20 million is going to commercial people, to technical sales experts to increase more perfumers, more flavors, so -- and R&D people. So really strengthening our ability to drive innovation. At the same time, we're strengthening our ability to drive productivity and make sure that we're able to drive productivity in a way that we keep continuously improving our margins and our ROIC, and be able to invest even more in innovation.

從那時起，我們計劃繼續增加我們的營業收入。這樣，我們就能夠將相同比例的銷售額投資於我們的創新和其他領域，以推動成長。這 2000 萬美元將用於商業人員、技術銷售專家，以增加更多的調香師、更多的口味以及研發人員。因此真正增強了我們推動創新的能力。同時，我們正在加強提高生產力的能力，並確保我們能夠以持續提高利潤率和投資回報率的方式提高生產力，並能夠在創新方面投入更多資金。

So I think it's a virtuous cycle that we drive the innovation, which gives us sales growth, which enables us to invest more in innovation. At the same time, we drive productivity to help our margins, but also enable us to invest more in innovation. And that's what we've started to be able to do in 2024 and intend to continue to do in '25 and beyond.

所以我認為這是一個良性循環，我們推動創新，這為我們帶來銷售成長，這使我們能夠在創新上投入更多。同時，我們提高生產力以提高利潤，同時也使我們能夠在創新方面投入更多資金。這就是我們在 2024 年開始做的事情，並打算在 2025 年及以後繼續這樣做。

Jeff Zekauskas, JPMorgan.

摩根大通的 Jeff Zekauskas。

You talked about being satisfied with your volumes in October. Roughly were they up mid-single digits, that is sort of continuing the pattern of what you experienced in the third quarter? And then secondly, in Functional Ingredients, you have some volume growth, and you have some price degradation. In general, is the EBITDA or operating profit of Functional Ingredients growing nicely for you this year or not growing or shrinking. Can you give us an idea of how that business is performing?

您說過對十月份的銷售感到滿意。大概是上漲了個位數的中段，這是否延續了第三季的模式？其次，功能性成分的銷量有所成長，但價格下降。整體而言，今年功能性成分業務的 EBITDA 或營業利潤成長良好還是沒有成長或縮減？您能告訴我們該業務的運作嗎？

Sure. So we're mid-single digit up in the month of October. So the same pattern we've seen in the last few quarters. As Erik noted, it sort of drops there sort of fairly significantly with the last quarter being -- last month of the quarter rather being pretty tough. And Functional Ingredients is sort of following that pattern.

當然。因此，十月我們的成長率達到了個位數的中段。這與過去幾季我們看到的模式相同。正如艾瑞克所指出的，由於最後一個季度——也就是季度的最後一個月——的情況相當艱難，所以它的下降幅度相當大。功能性成分也遵循這種模式。

Functional Ingredients from a volume metric standpoint, is going to be 5% to 6% volumes this year. They had a very, very strong performance. That has largely been offset with price. So currency neutral or sort of flattish to slightly up. But to remind you, the beginning of this year, as there was a lot of deflation in the underlying commodities supporting the business, we basically took those dollars to reinvest back with our customers on a very targeted basis.

從產量指標來看，今年功能性成分的產量將達到 5% 至 6%。他們的表現非常非常出色。這在很大程度上已被價格所抵消。因此貨幣呈中性或持平或略有上漲。但要提醒您的是，今年年初，由於支撐業務的基礎大宗商品出現嚴重通貨緊縮，我們基本上將這些美元以非常有針對性的方式重新投資給我們的客戶。

And it's helped us not only deliver the top line turnaround in results, but to your final question, gross margins are up very nicely, fairly consistent with Flavors in terms of year over year, and EBITDA itself is up very strongly. So last year, the business was, I'll say, circa a 8%, 9% EBITDA margin. It will probably finish this year north of 12%, and it's sort of on its way to our stated objective to get to sort of mid-teens over the next two years.

它不僅幫助我們實現了業績的扭轉，而且對於您的最後一個問題，毛利率上升得非常好，與風味業務的同比變化相當一致，而且 EBITDA 本身也增長得非常強勁。所以，我認為去年公司的 EBITDA 利潤率大約是 8% 至 9%。今年該比例很可能將超過 12%，並且有望實現我們設定的目標，即在未來兩年內達到 15% 左右。

So hopefully, that answers the question.

希望這能回答這個問題。

Lisa De Neve, Morgan Stanley.

摩根士丹利的麗莎‧德內夫 (Lisa De Neve)。

I just want to come back a little bit to the growth. We've talked a little bit about segmental growth and growth across divisions. But can you share how growth has been different across your regions and across the segments in that? And maybe can you also share how your performance has been in China and maybe also in India, given a lot of your customers had very big volatility of delivery in these regions?

我只是想稍微回顧一下成長。我們討論了一些部門成長和跨部門成長。但您能否分享一下您所在地區和各個細分市場的成長有何不同？或許您能分享一下您在中國和印度的業績如何，因為您許多客戶在這些地區的交付波動都很大？

So I'll provide some general perspectives and then turn it over to Erik. Generally, all of our businesses have performed well across the board. Pharma lagged as we expected. The destocking was a little bit more later in the cycle. Pharma is now back in the -- very strong positive territory in the second half of the year as expected. But all of the businesses have actually done very well from the start of this year standpoint.

因此我將提供一些一般性觀點，然後將其交給 Erik。整體來看，我們各項業務都表現良好。正如我們預期的那樣，製藥業表現落後。在本週期中，去庫存現象稍微晚一些。正如預期的那樣，製藥業在下半年又回到了非常強勁的積極領域。但從今年年初的角度來看，所有企業其實都表現得很好。

China and India are two different stories. China, well, there's been some improvement, still it's a little bit choppy in terms of the growth trajectory, given the local market. India is extremely strong. We are, as Erik mentioned in earlier comments, really doubling down on investments within India to really continue to capture that share in terms of kind of the growth opportunities.

中國和印度是兩個不同的故事。中國確實取得了一些進步，但考慮到當地市場，其成長軌跡仍然有點不穩定。印度極為強大。正如埃里克在之前的評論中提到的那樣，我們確實在加倍投資印度，以繼續搶佔這一成長機會份額。

So I don't know, Erik, are there --

所以我不知道，埃里克，--

I would just add that we're investing in creative centers in the growth markets, including India, very aggressively to ensure that we continue to grow strong in those markets.

我想補充一點，我們正在積極投資包括印度在內的成長型市場的創意中心，以確保我們在這些市場繼續保持強勁成長。

Chris Parkinson, Wolfe Research.

克里斯·帕金森（Chris Parkinson），沃爾夫研究公司。

Can we just dig in a little bit more into the H&B result? And obviously, it's been pretty solid, but just the composition of kind of the subsegments, the probiotics recovery? And anything that we should be thinking about in considering as we enter 2025?

我們能更深入了解一下 H&B 的結果嗎？顯然，它一直很穩定，但只是細分市場的組成，益生菌的恢復？當我們進入 2025 年時，我們應該考慮什麼呢？

Yes, every single business within H&B had a very good performance within the quarter. Probiotics bounced back a lot. As you're well aware, over the last couple of years, there has been softness in the business, in part, given the situation in China. It's our second largest market. It's very close to the size of North America. So as goes China, it does whipsaw the business sort of back and forth. But the third quarter was a very, very strong quarter across the board.

是的，H＆B 旗下的每一項業務在本季都表現得非常好。益生菌反彈很多。大家可能都清楚，過去幾年來，我們的業務一直表現疲軟，部分原因是受中國局勢的影響。這是我們的第二大市場。它的面積與北美洲的面積非常接近。就中國而言，其商業活動確實經歷了反覆無常的波動。但第三季整體表現非常強勁。

This will conclude the question-and-answer portion of today's call. I would now like to turn the call back to Erik for closing remarks.

今天電話會議的問答部分到此結束。現在我想請艾瑞克作最後發言。

Well, first of all, I want to thank you all for joining today. I appreciate your questions and your interest in IFF. I've now been here for just about 10 months, and I've got to tell you that I'm more excited than ever about the prospects for our company. I love Team IFF. I love our customers. I love spending time with them.

首先，我要感謝大家今天的參加。我感謝您的提問以及對 IFF 的關注。我來這裡已經有 10 個月了，我必須告訴你們，我對我們公司的前景比以往任何時候都更加興奮。我愛 IFF 團隊。我愛我們的顧客。我喜歡和他們在一起。

I love our innovation. And I really appreciate the work that our teams are doing to have delivered the first three quarters. And I can tell you that we're all very much focused on making sure that we deliver the fourth quarter, but do it in a way that strengthens us for '25 to '26 and beyond.

我喜歡我們的創新。我非常感謝我們的團隊在前三個季度所做的工作。我可以告訴你們，我們大家都非常專注於確保完成第四季度的業績，但我們要以一種能夠增強我們在2025、2026年及以後的實力的方式完成這一目標。

So thank you very much, and have a great day.

非常感謝您，祝您有愉快的一天。

This concludes today's conference call. Thank you all for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝大家的參與。現在您可以斷開線路了。