New York-based International Flavors & Fragrances Inc. (IFF - Free Report) yesterday announced that it has started operating its flavors facility in Cairo, Egypt. The facility has been fully revamped and expanded by the company.
The company’s share price inched up roughly 0.3% yesterday, closing the trading session at $144.14.
Market sentiments have been positive for International Flavors in the last three months, with its shares yielding 5.8% return, outperforming 0.6% gain of the industry.
Discussion on the News
The facility has been equipped with improvised laboratories that will enable International Flavors to work more diligently on new and innovative products. Such products, along with the existing ones will help it expand market share in this region. This expansion complements the company’s vision of strengthening foothold in the Middle East and Africa region.
As disclosed, the company has been operating the Cairo facility since 1979. It housed sales office, creation and applications laboratories, and flavor production facilities.
Exiting 2016, International Flavors operated 42 manufacturing sites in different nations including the United States, China, India and others. These facilities manufactured more than 35,000 products.
We believe that international diversity played a major role in enhancing International Flavors’ profitability over time. Notably, in second-quarter 2017, the company’s sales from North American operations grew 19% year over year while that from Europe, Africa and the Middle East jumped 6%. Revenues from Latin American operations grew 3% year over year. The company is working hard to strengthen its foothold in emerging nations, as growing economy in these countries will boost demand for consumer products and in turn, demand for flavors and fragrances used in them.
Zacks Rank & Stocks to Consider
With a market capitalization of $11.4 billion, International Flavors currently carries a Zacks Rank #3 (Hold). Over the last 60 days, the Zacks Consensus Estimate for the stock increased 0.5% both for 2017 and 2018 to $5.75 per share and $6.25, respectively.
International Flavors & Fragrances, Inc. Price and Consensus