International Flavors & Fragrances Inc. has just released its 10-K report, providing a comprehensive look at the company's financial health and performance for the fiscal year ended December 31, 2023. The company, founded in 1833 and headquartered in New York, operates through four segments: Nourish, Scent, Health & Biosciences, and Pharma Solutions. These segments offer a wide range of products, including natural and plant-based specialty food ingredients, fragrance compounds, cosmetic active ingredients, enzymes, and specialty ingredients for food and non-food applications.
In 2023, the company reported cash and cash equivalents of approximately $729 million, inclusive of $26 million currently in Assets held for sale on the Consolidated Balance Sheets, compared to $535 million in 2022. Cash flows provided by operating activities in 2023 were $1.439 billion, representing 12.5% of sales, a significant increase from $397 million in 2022. Cash flows provided by investing activities in 2023 were $574 million, down from $745 million in 2022. Cash flows used in financing activities in 2023 were $1.851 billion, compared to $1.229 billion in 2022.
The company paid dividends totaling $826 million in 2023, reflecting its commitment to maintaining a history of paying dividends to investors. In terms of capital resources, operating cash flow provides the primary source of funds for capital investment needs, dividends paid to shareholders, and debt service repayments. The company anticipates that cash flows from operations, cash proceeds generated from planned business divestitures, and availability under existing credit facilities will be sufficient to meet its investing and financing needs, including debt service requirements.
As of December 31, 2023, the company had no outstanding borrowings under its $2.000 billion Revolving Credit Facility, with a borrowing capacity of approximately $1.548 billion. It was also in compliance with all financial and other covenants under its credit agreements, including the net debt to credit adjusted EBITDA ratio, which was 4.51 to 1.0 at December 31, 2023. The company had $9.085 billion aggregate principal amount outstanding in senior unsecured notes as of December 31, 2023, with effective interest rates ranging from 1.22% per year to 5.12% per year.
