• Sat. Nov 28th, 2020

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Factors behind the growth of International Flavors & Fragrances Inc. (NYSE: IFF)

ByChristopher Lang

Mar 12, 2020

On 11 March 2020, International Flavors & Fragrances Inc. stock identified change of 6.12% away from 52-week low price and recently located move of -27.24% off 52-week high price. It has market worth of $12088.35M and dividend yield of 2.70%. IFF stock has been recorded -14.66% away from 50 day moving average and -14.72% away from 200 day moving average. Moving closer, we can see that shares have been trading -12.81% off 20-day moving average.

International Flavors & Fragrances Inc. (IFF) stated financial results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter 2019 Consolidated Financial Results

Stated net sales for the fourth quarter totaled $1.28B, a raise of 5% from $1.22B in 2018. Currency neutral sales increased 7%, including the net contribution of acquisitions and divested businesses. Growth this quarter benefited from about 4 percentage points associated with an additional week of sales, or a 53rd week.

Stated earnings per share (EPS) for the fourth quarter was $0.70 per diluted share versus $0.09 per diluted share stated in 2018. Not Including those items that affect comparability, adjusted EPS ex amortization was $1.46 per diluted share in 2019 versus $1.23 in the year-before period, led by adjusted operating profit growth, increases in other income and a lower effective tax rate.

Scent Business Unit

On a stated basis, sales increased 4%, or $20.4M, to $478.3M. Currency neutral sales increased 6%, with growth in all regions and nearly all categories. Performance was strongest in Consumer Fragrance, increasing high-single digits, driven by strong growth in Home, Fabric and Hair Care. Fine Fragrance grew mid-single-digits, led by double-digit growth in both Greater Asia and Latin America. Fragrance Ingredients declined low single-digits as price increases were offset by volume declines related to inventory destocking.

Scent section profit increased 7% on a stated basis and increased 11% on a currency neutral basis driven by the benefits of productivity initiatives and volume growth.

Taste Business Unit

On a stated basis, sales increased 7%, or $28.3M, to $429.9M. Currency neutral sales increased 8% led by double-digit growth in Greater Asia and high single-digit growth in North America. From a category perspective, growth was strongest in Beverage and Savory, led by strong new win performance.

Taste section profit increased 2% on a stated basis and increased 5% on a currency neutral basis as contributions from volume growth, productivity and lower incentive compensation expense were moderated by higher raw material costs.

Frutarom Business Unit

On a stated basis, sales increased 4%, or $16.0M, to $375.6M. Currency neutral sales increased 6%, including the net contribution of acquisitions and divested businesses. Sales, not including the impact of foreign currency and the benefits of acquisitions, grew 2% driven by solid growth in Taste and Savory Solutions.

Frutarom section profit increased 17% on a stated basis and 24% on a currency neutral basis to $32M. Not Including amortization, section profit for the fourth quarter was $73M driven by acquisition-related synergies and cost management.

Full Year 2019 Consolidated Financial Results

Stated net sales for the full year totaled $5.1B, a raise of 29% from $4.0B in 2018, including the contribution of sales related to Frutarom. On a combined basis, currency neutral sales increased 3%, including the net contribution of acquisitions and divested businesses. Growth this year benefited from about 1 percentage point associated with an additional week of sales, or a 53rd week.

Stated earnings per share (EPS) for the full year was $4.00 per diluted share versus $3.79 per diluted share stated in 2018. Not Including those items that affect comparability, adjusted EPS ex amortization was $6.17 per diluted share in 2019 versus $6.23 in the year-before period, as adjusted operating profit improvement was over offset by higher shares outstanding and interest expense – both related to the Frutarom acquisition.

International Flavors & Fragrances Inc. noticed change of -6.15% to $111.28 along volume of 2622156 shares in recent session compared to an average volume of 1394.44K. IFF’s shares are at -16.84% for the quarter and driving a -11.81% return over the course of the past year and is now at -13.75% since this point in 2018. The average volatility for the week at 4.69% and for month was at 3.71%.

 

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