Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  International Flavors & Fragrances Inc.    IFF

INTERNATIONAL FLAVORS & FRAGRANCES INC.

(IFF)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector news

Flavor Company IFF Juggles Proposed Merger and Pandemic Management

share with twitter share with LinkedIn share with facebook
05/12/2020 | 04:38pm EDT

By Kristin Broughton

International Flavors and Fragrances Inc., which makes colors, smells and tastes in many consumer goods, is facing a dual challenge of managing through a pandemic while preparing to close a major deal.

IFF in December reached a deal to merge with DuPont de Nemours Inc.'s nutrition business. The transaction, expected to close in the first quarter of 2021, would establish New York-based IFF as a top supplier of ingredients to U.S. food companies, and expand its offerings in fast-growing areas such as plant-based proteins and probiotics.

When the coronavirus pandemic began to unfold earlier this year and started to disrupt global supply chains, the company activated its contingency plans, adding it as one more actionable item on its things-to-do list ahead of the planned merger.

In January and February, as the virus began to spread in China, IFF began stockpiling chemicals and ingredients to ensure that virus-related lockdowns wouldn't disrupt its production and manufacturing.

"It's been strong -- our response and our supply chain -- but it's stressed," said Rustom Jilla, IFF's chief financial officer.

Mr. Jilla, who joined IFF in January after serving as finance chief at MSC Industrial Supply Co., said the company began seeing the pandemic's financial impact in mid-March, when local governments began closing nonessential businesses. Lower demand for luxury scents and food-service ingredients was offset by higher sales of scents used in cleaning products and flavors for potato chips and other consumer-pantry items, the company said Tuesday.

"What we have seen is a mixed effect," Mr. Jilla said. IFF's net income for the quarter ending March 31 rose 14% from a year earlier to $124.6 million.

The financial impact of the pandemic, including higher inventory costs, will be more apparent in the year ahead, according to Mr. Jilla. He said the company has taken additional measures to conserve cash, such as delaying some capital expenditures.

As IFF's crisis-management plans have been kicked into gear, Andreas Fibig, the company's chairman and chief executive, has been overseeing the DuPont integration, Mr. Jilla said.

IFF on Monday said the combined company will include four divisions focused on tastes, scents, health and pharmaceutical solutions. The new divisions will be formed by mixing business lines from both companies, IFF said.

Asked by an analyst during IFF's earnings call Tuesday whether the pandemic has changed the company's views on the planned merger, Mr. Fibig said integration planning remains on track, though meetings have happened over videoconference calls rather than in person.

The company has received approvals from U.S. regulators, and is now focused on securing support from IFF shareholders in September, Mr. Fibig said.

"We really need to make sure that we're ready for day one [of the merged company]," he said.

Write to Kristin Broughton at Kristin.Broughton@wsj.com

 

Stocks mentioned in the article
ChangeLast1st jan.
DUAL CO., LTD. -2.27% 2795 End-of-day quote.-10.99%
DUPONT DE NEMOURS, INC. -1.52% 52.32 Delayed Quote.-17.24%
INTERNATIONAL FLAVORS & FRAGRANCES INC. 1.40% 124.17 Delayed Quote.-5.08%
THE GLOBAL LTD. -5.43% 209 End-of-day quote.-55.63%
THE NEW HOME COMPANY INC. -5.36% 3.18 Delayed Quote.-27.90%
share with twitter share with LinkedIn share with facebook
Latest news on INTERNATIONAL FLAVORS & FR
06/26INTERNATIONAL FLAVORS & FRAGRANCES : IFF to Hold Sustainability Webcast on June ..
AQ
06/26INTERNATIONAL FLAVORS & FRAGRANCES : IFF Embraces 'Do More Good' in 2019 Sustain..
AQ
06/25IFF : to Hold Sustainability Webcast on June 30, 2020
BU
06/25IFF : Embraces “Do More Good” in 2019 Sustainability Report
BU
06/24INTERNATIONAL FLAVORS & FRAGRANCES I : Ex-dividend day for
FA
06/23INTERNATIONAL FLAVORS & FRAGRANCES : Neptune's New Natural Plant Based Hand Sani..
AQ
06/22INTERNATIONAL FLAVORS & FRAGRANCES : Neptune's New Natural, Plant-Based Hand San..
PR
06/18INTERNATIONAL FLAVORS & FRAGRANCES I : Other Events (form 8-K)
AQ
06/08Gilead, Thor rise; International Flavors, Emergent fall
AQ
06/08INTERNATIONAL FLAVORS & FRAGRANCES I : Regulation FD Disclosure, Financial State..
AQ
More news
Financials (USD)
Sales 2020 5 123 M - -
Net income 2020 485 M - -
Net Debt 2020 3 658 M - -
P/E ratio 2020 30,0x
Yield 2020 2,42%
Capitalization 13 268 M 13 268 M -
EV / Sales 2019
EV / Sales 2020 3,30x
Nbr of Employees 13 668
Free-Float 82,9%
Chart INTERNATIONAL FLAVORS & FRAGRANCES INC.
Duration : Period :
International Flavors & Fragrances Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends INTERNATIONAL FLAVORS & FR
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 16
Average target price 132,83 $
Last Close Price 124,17 $
Spread / Highest target 25,6%
Spread / Average Target 6,97%
Spread / Lowest Target -16,2%
EPS Revisions
Managers
NameTitle
Andreas Fibig Chairman & Chief Executive Officer
Francisco Fortanet Executive Vice President-Operations
Rustom F. Jilla Chief Financial Officer & Executive Vice President
Gregory Yep Chief Global Scientific & Sustainability Officer
Vic Verma Chief Information Officer & Senior Vice President