IFF Increases Quarterly Dividend 20% to $0.56 per share
August 06 2015 - 4:30PM
Business Wire
Announces $250 Million Share Repurchase
Authorization
Regulatory News:
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext
Paris: IFF), a leading global creator of flavors, fragrances and
cosmetic actives for consumer products, announced that its Board of
Directors has authorized a quarterly dividend of $0.56 per share of
the Company’s common stock, an increase of $0.09 or 20% from the
current quarterly dividend of $0.47 per share, which will result in
a more competitive dividend yield. The quarterly dividend will be
payable on October 6, 2015 to shareholders of record as of
September 25, 2015.
The Company also announced that its Board of Directors has
approved a $250 million share repurchase authorization through
2017, which is in addition to the approximately $50 million
remaining on its current authorization. At the current market
price, the combined authorization would enable the Company to
repurchase more than 2.5 million shares, or approximately 3% of the
shares currently outstanding. The purchases will be made from time
to time on the open market or through private transactions as
market and business conditions warrant. Repurchased shares will be
placed into treasury stock.
Over the past five years, the Company has returned more than
$660 million to shareholders through a combination of dividends and
gross share repurchases, or 39% of adjusted net income.
Andreas Fibig, IFF’s Chairman and CEO, said, “Vision 2020 is all
about building greater differentiation, accelerating growth and
creating incremental shareholder value. Today’s announcement
reflects the Board’s confidence in our long-term strategy, which
when combined with our robust cash flow generation and strong
balance sheet, allows us to support our growth aspiration while
simultaneously increasing cash returned to shareholders. The 20%
increase in the quarterly dividend and $250 million share
repurchase authorization is expected to lead to an approximately
55% payout ratio of our estimated adjusted net income in 2015 – in
line with our recently communicated 50% to 60% target and above our
5-year average historical payout.”
About International Flavors &
Fragrances Inc.
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext
Paris: 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.
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 Vision2020 strategy, the timing
and amount of share repurchases, the expected payout ratio in 2015
and our ability to generate shareholder returns and sustain our
long-term growth. 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) the Company’s ability to implement its
Vision 2020 strategy, including building differentiation and
accelerating profitable growth to achieve long-term financial
targets; (2) volatility and increases in the price of raw
materials, energy and transportation; (3) the economic and
political risks associated with the Company’s international
operations; (4) the Company’s ability to benefit from its
investments and expansion in emerging markets; (5) fluctuations in
the quality and availability of raw materials; (6) changes in
consumer preferences and demand for the Company’s products or a
decline in consumer confidence and spending; (7) the Company’s
ability to implement its business strategy, including the
achievement of anticipated cost savings, profitability, realization
of price increases and growth targets; (8) the Company’s ability to
successfully develop new and competitive products that appeal to
its customers and consumers; (9) the impact of a disruption in the
Company’s supply chain or its relationship with its suppliers; (10)
the impact of currency fluctuations or devaluations in the
Company’s principal foreign markets; (11) any adverse impact on the
availability, effectiveness and cost of the Company’s hedging and
risk management strategies; (12) the effects of any unanticipated
costs and construction or start-up delays in the expansion of the
Company’s facilities; (13) the Company’s ability to successfully
execute and to increase sales through acquisitions, collaborations
and joint ventures; (14) the Company’s ability to manage
unanticipated costs and other adverse financial impacts in
connection with our acquisitions; (15) 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; (16) adverse changes in federal, state, local and
foreign tax legislation or adverse results of tax audits,
assessments, or disputes; and (17) 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.
# # #
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version on businesswire.com: http://www.businesswire.com/news/home/20150806006586/en/
International Flavors & Fragrances Inc.VP, Global Corporate
Communications & Investor Relations:Michael DeVeau,
212-708-7164
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