Nov 4 (Reuters) - International Flavors and Fragrances ( IFF )

reported an adjusted profit that beat analysts'

expectations for the third quarter, driven by steady demand and

a pivot to higher-margin businesses.

Shares of the New York City-based company were up 3% after

the bell.

WHY IT'S IMPORTANT

International Flavors & Fragrances ( IFF ) has weathered the

consumer spending slowdown better than peers such as Germany's

Symrise as steady demand for food, home and personal

care ingredients has helped offset inflationary pressures.

CONTEXT

Softer trends in beauty and some food categories have

led customers to keep leaner inventories, prompting the supplier

to shed non-core businesses and sharpen its focus on flavors,

fragrances and health ingredients.

IFF is in the process of selling its soy crush, concentrates

and lecithin business to U.S. grain trader Bunge Global ( BG ) .

KEY QUOTES

"In a more challenging environment, we're doing what we said

we would do - maintaining the financial guidance we shared in

February and advancing our growth strategy," CEO Erik Fyrwald

said.

"At the same time, we are progressing our portfolio

optimization efforts to unlock the full potential of our

portfolio."

BY THE NUMBERS

International Flavors & Fragrances ( IFF ) posted an adjusted profit

of $1.05 per share for the third quarter, compared with

analysts' average estimate of $1.01 per share, according to data

compiled by LSEG.

The company, which provides ingredients and flavor solutions

used in food and beverage products, reiterated its annual sales

forecast of $10.6 billion to $10.9 billion.

The company's quarterly net sales fell 8% to $2.69 billion

from last year. Analysts were expecting, on average, $2.63

billion.