International Flavors & Fragrances Inc. (NYSE: IFF), a
leading global creator of flavors and fragrances for consumer
products, announced that the Company’s senior executives will offer
their perspective on IFF's Vision 2020 and commentary on the second
quarter and full year 2015, at an investor meeting today in New
York City.
“The cornerstone of Vision 2020 is our new purpose statement,
‘We are the catalyst for discoveries that spark the senses and
transform the everyday,’” said Andreas Fibig, Chairman and CEO.
“Building on our legacy of pioneering firsts, we believe that our
strategy will help us build differentiation and accelerate growth
for all our stakeholders.”
The Company’s strategy is built on four pillars and supported by
three enablers.
Win Where We Compete
“We aim to be #1 or #2 with key customers and in strategic
categories and regions. To succeed, we must all be explorers,
constantly pushing each other to take smart risks. This mindset,
courage, and drive for the future is critical to IFF’s Vision 2020
and our team is ready.” Matthias Haeni, Group President,
Flavors
Innovating Firsts
“Whether it’s being first-to-market with a revolutionary
fragrance in response to a pressing consumer demand, cracking the
code on a customer’s need for a breakthrough flavor, or rethinking
supply chain processes that save time and support sustainability,
we work together, leveraging a passionate team and robust
intellectual property to deliver innovative “firsts” to our
customers the world over.” Ahmet Baydar, SVP Research &
Development
Become Our Customers’ Partner of Choice
“Nothing succeeds like exceptional partnerships, especially in
the current environment. Our customers will gain additional access
and leverage the full breadth of the added value we bring to them,
including industry-leading consumer insights, robust innovation
pipeline, the highest level of service and impeccable quality. We
will bring them our best.” Nicolas Mirzayantz, Group President,
Fragrances
Strengthen and Expand the Portfolio
“The boundaries of our industry are blurring and expanding, and
we touch lives in a myriad of ways. By building on our core
strengths and through strategic acquisitions, partnerships and
collaborations, we will grow our market share and deliver
exceptional and multifaceted solutions to our partners.” Rich
O’Leary, Interim CFO
The three enablers to the strategy include Talent and
Organization, with investment in its people; Continuous
Improvement, with a relentless focus on finding efficiencies
and streamlining processes to reinvest in the business; and
Sustainability, strengthening sustainable practices and
innovation in every area of the organization.
Financial Guidance
The Company is also announcing its long-term financial targets
for 2016-2020. These include 4-6% currency neutral sales growth,
7-9% currency neutral operating profit growth, and 10% currency
neutral EPS growth. In addition, the Company is targeting $500
million to $1 billion of sales growth through acquisitions by 2020.
Leveraging its strong cash flow generation and commitment to Vision
2020, the Company intends to increase its targeted cash return to
shareholders to 50-60% of adjusted net income.
The Company will also provide commentary on the second quarter
2015, where it expects currency neutral sales growth to be about 5%
including approximately one point impact from Ottens Flavors. In
addition, the Company expects adjusted operating profit in the
second quarter to be up 6 to 8% on a currency neutral basis and
flat to down low single-digits on a reported basis. For the full
year 2015, the Company expects currency neutral sales to be in line
with its long-term target and expects adjusted operating profit and
adjusted EPS to be at the low-end of its long-term range, on a
currency neutral basis.
“Over the past five years, IFF’s strategy has served us well,
putting key fundamentals and a disciplined approach in place,”
continued Mr. Fibig. “Vision 2020 is a natural evolution and the
logical next step that will provide the fuel we need to accelerate
our growth and increase differentiation. We are here to lead where
we compete. We believe our strong financial foundation, expansion
in key markets and investment in innovation will redefine winning
and lead to sustainable, profitable growth at IFF.”
The live webcast of today’s meeting and accompanying
presentation materials, as well as the U.S. Generally Accepted
Accounting Principles (U.S. GAAP) reconciliation, can be accessed
by visiting the Investor Relations section of www.iff.com. The
meeting will begin at 1:00 pm EDT and the webcast will be available
as an archive on the site for later viewing.
Cautionary Statement Under The Private Securities Litigation
Reform Act of 1995
This press release includes “forward-looking statements” under
the Federal Private Securities Litigation Reform Act of 1995,
including statements regarding our outlook for the second quarter
and full year 2015, and our ability to generate shareholder returns
and sustain our long-term growth performance. These forward-looking
statements are qualified in their entirety by cautionary statements
and risk factor disclosures contained in the Company’s Securities
and Exchange Commission filings, including the Company’s Annual
Report on Form 10-K filed with the Commission on March 2, 2015. The
Company wishes to caution readers that certain important factors
may have affected and could in the future affect the Company’s
actual results and could cause the Company’s actual results for
subsequent periods to differ materially from those expressed in any
forward-looking statements made by or on behalf of the Company.
With respect to the Company’s expectations regarding these
statements, such factors include, but are not limited to: (1)
volatility and increases in the price of raw materials, energy and
transportation; (2) the economic and political risks associated
with the Company’s international operations; (3) the Company’s
ability to benefit from its investments and expansion in emerging
markets; (4) fluctuations in the quality and availability of raw
materials; (5) changes in consumer preferences and demand for the
Company’s products or a decline in consumer confidence and
spending; (6) the Company’s ability to implement its business
strategy, including the achievement of anticipated cost savings,
profitability, realization of price increases and growth targets;
(7) the Company’s ability to successfully develop new and
competitive products that appeal to its customers and consumers;
(8) the impact of a disruption in the Company’s supply chain or its
relationship with its suppliers; (9) the impact of currency
fluctuations or devaluations in the Company’s principal foreign
markets; (10) any adverse impact on the availability, effectiveness
and cost of the Company’s hedging and risk management strategies;
(11) the effects of any unanticipated costs and construction or
start-up delays in the expansion of the Company’s facilities; (12)
the Company’s ability to successfully identify and execute
acquisitions, collaborations and joint ventures; (13) the effect of
legal and regulatory proceedings, as well as restrictions imposed
on the Company, its operations or its representatives by U.S. and
foreign governments; (14) adverse changes in federal, state, local
and foreign tax legislation or adverse results of tax audits,
assessments, or disputes; and (15) changes in market conditions or
governmental regulations relating to our pension and postretirement
obligations. New risks emerge from time to time and it is not
possible for management to predict all such risk factors or to
assess the impact of such risks on the Company’s business.
Accordingly, the Company undertakes no obligation to publicly
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
About International Flavors & Fragrances Inc.
International Flavors & Fragrances Inc. (NYSE:IFF) is a
leading global creator of flavors and fragrances used in a wide
variety of consumer products. Consumers experience these unique
scents and tastes in fine fragrances and beauty care, detergents
and household goods, as well as beverages, sweet goods and food
products. The Company leverages its competitive advantages of
consumer insight, research and development, creative expertise, and
customer intimacy to provide customers with innovative and
differentiated product offerings. A member of the S&P 500
Index, IFF has more than 6,200 employees working in 32 countries
worldwide. For more information, please visit our website at
www.iff.com; follow us on Twitter and LinkedIn.
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version on businesswire.com: http://www.businesswire.com/news/home/20150602006817/en/
International Flavors & Fragrances Inc.Michael DeVeau,
212-708-7164VP, Global Corporate Communications & Investor
Relations
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