Regulatory News:
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext
Paris:IFF) (TASE:IFF), a leading innovator of taste, scent and
nutrition, announced today that the Company will present IFF's
Vision 2021 at its Investor Day at 9:00 am today in New York
City.
“We are excited to share our vision for the future of IFF. The
Frutarom acquisition significantly increased our product portfolio,
customer base and capabilities and solidified our position as a
global leader in taste, scent and nutrition,” said Andreas Fibig,
Chairman and CEO at IFF.
Vision 2021Following IFF’s successful implementation of
Vision 2020 and its acquisition of Frutarom, the Company has
launched its new strategy to drive IFF’s top- and bottom-line
goals. Vision 2021 has four pillars:
1) Unlocking growth opportunities –
capitalizing on its expanded product portfolio, broader customer
base and extensive geographic presence; plus cross-selling and
integrated solutions which are expected to deliver $100 million
sales over the 2019 to 2021 period2) Driving innovation – investing
in high-growth and high-return platforms to continue to drive its
R&D pipeline and accelerate long-term growth3) Managing the
Portfolio – focus on optimizing its portfolio to maximize value
creation4) Accelerating Business Transformation – successfully
integrating Frutarom while delivering $145 million of synergy
targets and achieving productivity gains across the base
business
“Our Vision 2021 Strategy has been designed to leverage our
newly combined organization, our broader product portfolio,
increased naturals portfolio, expanded market access, broader
customer base and greater innovation pipeline to drive total
shareholder return,” added Mr. Fibig. “We are focused on
disciplined execution and capital stewardship.”
New OrganizationTo capitalize on its broadened portfolio
and align with its Vision 2021 strategy, the company is announcing
a new organizational structure, to be fully implemented over the
next twelve months. IFF will be organized intro three business
segments: Taste, Scent and Nutrition & Ingredients.
“We have designed an organization that will allow us to build on
our business and focus on accelerating high-growth and high-margin
platforms,” said Fibig. “We will capitalize on our combined
capabilities to drive revenue synergies and efficiencies to better
serve our thirty-nine thousand customers globally.”
Matthias Haeni will continue to lead Taste, a position he has
held since April 2014. Taste will ultimately include legacy
Frutarom’s Taste, Savory Solutions, and Inclusions businesses.
Nicolas Mirzayantz will continue to lead Scent, a position he
has held since October 2006.
Yoni Glickman, who presided over legacy Frutarom’s Natural
Product Solutions will lead Nutrition & Ingredients. “Yoni has
proven he has the right combination of Naturals expertise, market
knowledge and deep understanding across Nutrition & Ingredients
categories to lead this new strategic business unit,” said
Fibig.
The organization is intended to be fully implemented over the
next twelve months. More details on the new organization will be
announced during the Investor Day meeting.
Financial GuidanceThe Company reconfirms its long-term
financial targets for 2019-2021: 5-7% currency neutral sales
growth, and 10%+ currency neutral EPS growth, excluding
amortization. The company reconfirms its objective to reach <3x
Net Debt / EBITDA between 18-24 months and >12% total
shareholder return by 2021. For the full year 2019, the Company
also reconfirms its guidance of $5.2B - $5.3B in sales, $4.90 -
$5.10 in adjusted EPS, and $6.30 - $6.50 in EPS excluding
amortization.
Investors may access the live webcast and accompanying slide
presentation on the Company's website at ir.iff.com. For those
unable to listen to the live webcast, a recorded version will be
made available for replay.
Cautionary Statement Under The Private Securities Litigation
Reform Act of 1995This press release includes “forward-looking
statements” under the Federal Private Securities Litigation Reform
Act of 1995, including statements regarding guidance for full year
2019, long-term financial objectives, expected impact of Vision
2021 on future growth and profitability, and the expected impact of
the Company’s new organizational structure to be implemented within
the next 12 months. 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 February 26, 2019 and subsequent
filings with the SEC, including the Company’s Quarterly Reports on
Form 10-Q. 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)
risks related to the integration of the Frutarom business,
including whether we will realize the benefits anticipated from the
acquisition in the expected timeframe; (2) unanticipated costs,
liabilities, charges or expenses resulting from the Frutarom
acquisition, (3) the increase in the Company’s leverage resulting
from the additional debt incurred to pay a portion of the
consideration for Frutarom and its impact on the Company’s
liquidity and ability to return capital to its shareholders,(4) the
Company’s ability to successfully market to its expanded and
decentralized Taste and Frutarom customer base, (5) the Company’s
ability to effectively compete in its market and develop and
introduce new products that meet customers’ needs, (6) the
Company’s ability to successfully develop innovative and
cost-effective products that allow customers to achieve their own
profitability expectations, (7) the impact of the disruption in the
Company’s manufacturing operations, (8)the impact of a disruption
in the Company’s supply chain, including the inability to obtain
ingredients and raw materials from third parties,(9) volatility and
increases in the price of raw materials, energy and transportation,
(10) the Company’s ability to comply with, and the costs associated
with compliance with, regulatory requirements and industry
standards, including regarding product safety, quality, efficacy
and environmental impact, (11) the impact of any failure or
interruption of the Company’s key information technology systems or
a breach of information security, (12) the Company’s ability to
react in a timely and cost-effective manner to changes in consumer
preferences and demands, (13) the Company’s ability to establish
and manage collaborations, joint ventures or partnership that lead
to development or commercialization of products, (14) the Company’s
ability to benefit from its investments and expansion in emerging
markets; (15) the impact of currency fluctuations or devaluations
in the principal foreign markets in which it operates; (16)
economic, regulatory and political risks associated with the
Company’s international operations, (17) the impact of global
economic uncertainty on demand for consumer products,(18) the
inability to retain key personnel; (19) the Company’s ability to
comply with, and the costs associated with compliance with, U.S.
and foreign environmental protection laws, (20) the Company’s
ability to realize the benefits of its cost and productivity
initiatives, (21) the Company’s ability to successfully manage its
working capital and inventory balances, (22) the impact of the
failure to comply with U.S. or foreign anti-corruption and
anti-bribery laws and regulations, including the U.S. Foreign
Corrupt Practices Act, (23) the Company’s ability to protect its
intellectual property rights, (24) the impact of the outcome of
legal claims, regulatory investigations and litigation,(25) changes
in market conditions or governmental regulations relating to our
pension and postretirement obligations, (26) the impact of future
impairment of our tangible or intangible long-lived assets, (27)
the impact of changes in federal, state, local and international
tax legislation or policies, including the Tax Cuts and Jobs Act,
with respect to transfer pricing and state aid, and adverse results
of tax audits, assessments, or disputes, (28) the effect of
potential government regulation on certain product development
initiatives, and restrictions or costs that may be imposed on the
Company or its operations as a result, and (29) the impact of the
United Kingdom’s expected departure from the European Union. 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.
Forward-Looking Non-GAAP MetricsThis press release
includes the Company’s expectations for (i) sales growth for 2019
and long-term currency neutral sales growth; (ii) EPS ex
amortization growth for 2019 and long-term currency neutral EPS ex
amortization growth; (iii) long-term total shareholder return
growth, and (iv) net debt to adjusted EBITDA guidance for 2020 and
2021. The closest corresponding GAAP measure to these non-GAAP
measures and a reconciliation of the differences between the
non-GAAP metric expectation and the corresponding GAAP measure is
not available without unreasonable effort due to length of the
forecasted period and potential variability, complexity and low
visibility as to items such as future contingencies and other costs
that would be excluded from the GAAP measure, and the tax impact of
such items, in the relevant future period. The variability of the
excluded items may have a significant, and potentially
unpredictable, impact on our future GAAP results.
Welcome to IFFAt IFF (NYSE:IFF) (Euronext Paris:IFF)
(TASE:IFF), we’re using Uncommon Sense to create what the world
needs. As a collective of unconventional thinkers and creators, we
put science and artistry to work to create unique and unexpected
scents, tastes, experiences and ingredients for the products our
world craves. Learn more
at iff.com, Twitter, Facebook, Instagram,
and LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20190605005451/en/
Michael DeVeauHead of Investor Relations and Communications
& Divisional CFO, Scent212.708.7164Michael.DeVeau@iff.com
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