Back to top

Analyst Blog

New York-based International Flavors & Fragrances Inc. (IFF - Analyst Report) hosted its Investor Day 2013 on June 5, 2013.

International Flavors & Fragrances has grown over time and has become a well renowned creator and supplier of flavors and fragrances for the food, beverage and beauty industries. The company operates in 32 countries and has a huge customer base in as many as 100 countries.

Management has laid emphasis on new business wins, geographical diversifications, wide product lines, continuous accomplishments in research and intense consumer insight, all of which bode well for the growth prospects of the company. Increasing exposure to emerging markets is also looked upon favorably.

Talking of the financial aspects of International Flavors & Fragrances, management provided its long-term targets (2013-2015) which include achievement of local currency sales growth in the range of 4%-6%, adjusted operating profit margin within 7%-9% and adjusted EPS growth of more than 10%. Adjusted effective tax rate is expected not to exceed 26.5% during the period.

International Flavors & Fragrances anticipates that sales growth for the Flavors and Fragrances businesses would be 2%-3% above industry while segmental profits would be in high single-digits.  

Also, core working capital as a percentage of sales are likely to be less than 31% while adjusted return on invested capital would be over 18%. Adjusted operating cash flow is expected to exceed $1.0 billion while capital expenditure, as a percentage of sales, may be roughly 4%-5% in 2013-2015 and roughly 3% in 2016-2018.

Merger and acquisitions as well as rewarding of shareholders through dividend and share buybacks will remain a priority for International Flavors & Fragrances.

International Flavors & Fragrances currently has a market capitalization of $6.4 billion and carries a Zacks Rank #2 (Buy). Other stocks to watch out for in the industry are Nu Skin Enterprises Inc. (NUS - Snapshot Report) and Avon Products Inc. (AVP - Analyst Report), each with a Zacks Rank #1 (Strong Buy) while Inter Parfums Inc. (IPAR - Snapshot Report), has a Zacks Rank #2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%