NEW YORK — Portfolio optimization at IFF in 2022 may include divesting more non-core businesses.

“Over the coming quarters, we will proceed with marketing a handful of non-strategic businesses, call it three or four, where we believe that over the next 18 months, we can generate expected proceeds of approximately $1.5 billion to $1.7 billion,” said Glenn R. Richter, chief financial officer, in a Feb. 10 earnings call to discuss fiscal-year 2021 results. “Similar to our fruit prep and microbial control businesses, these are non-strategic, and the transactions will be accretive to our go-forward growth rate and margin profile.”

After merging with DuPont’s Nutrition & Biosciences business, New York-based IFF last year completed the sale of its fruit preparation business to Frulact, a company in Portugal that specializes in fruit preparation. The sale of IFF’s microbial control business unit to Lanxess, a specialty chemicals company, should be completed in the second quarter of the current year. The combination of the two transactions will generate about $1.4 billion in gross proceeds, said Andreas Fibig, chief executive officer.

In the fiscal year ended Dec. 31, 2021, net income attributable to IFF stockholders was $270 million, equal to $1.11 per share on the common stock, which was down 24% from $363 million, or $3.25 per share, in the previous fiscal year. Net sales soared 129% to $11.66 billion from $5.08 billion, primarily driven by the incremental sales related to the merger with the DuPont Nutrition & Biosciences business.

In the fourth quarter net income attributable to IFF stockholders was $90 million, or 35¢ per share on the common stock, which was up 34% from $67 million, or 57¢ per share, in the previous year’s fourth quarter. The average number of shares outstanding was 255 at the end of 2021, which compared with 112 at the end of 2020. Fourth-quarter net sales were $3.03 billion, up 139% from $1.27 billion in the previous year’s fourth quarter.

The company in 2022 expects net sales of about $12.3 billion to $12.7 billion. Pricing actions to offset rising input costs will continue.

“Heading into 2022, we expect certain costs, including raw materials, energy and logistics, will continue to rise much as they did in '21,” Mr. Richter said. “Overall, we expect '22 cost increases to be double digits, call it approximately 10%. We are seeing most of these increases related to inflation in raw materials with double-digit increases in hydrocolloids, oils, cellulose, pulp, turpentine, aroma chemicals, petrochemicals, fragrance specialty chemicals, savory ingredients, specialty chemicals, agriculture, grains and sweeteners.”