Sector News

IFF announces new segments, reaffirms guidance

June 7, 2019
Food & Drink

International Flavors and Fragrances (IFF) announced that over the next year it will begin operating in three business segments at a capital markets day in New York City on 6 June. The three segments will be taste, scent, and nutrition and ingredients, and will consist of a mix of IFF businesses and former Frutarom businesses. IFF acquired Frutarom for $7.1 billion last year.

Yoni Glickman, former head of Frutarom’s natural product solutions segment, will lead the nutrition and ingredients segment. Nicolas Mirzayantz will continue to lead the scent segment, and Matthias Haeni will continue to lead the taste segment, which will also include Frutarom’s former taste, savory solutions, and inclusions business.

IFF also reaffirmed its’ 2021 financial guidance, calling for 5–7% currency-neutral sales growth and earnings per share growth of at least 10% a currency-neutral basis, excluding amortization. Growth is expected to be driven by cross-selling opportunities, innovation, M&A, and cost savings related to the Frutarom acquisition. IFF expects the cross-selling to amount to $100 million in sales during 2019 through 2021, and $145 million in cost savings to result from the Frutarom deal.

For 2019, IFF expects $5.2–5.3 billion in sales and $6.30–6.50/share in earnings excluding amortization.

A portfolio shift towards natural ingredients, and increased sales in areas adjacent to “traditional flavors and fragrances” are expected to help drive growth, says Alexandra Thrum, an analyst with Morgan Stanley (New York). “IFF highlighted how their portfolio is now positioned towards adjacencies as natural ingredients,” Thrum says.

M&A, and bolt-on acquisitions, will continue to be “an important strategic priority,” Thrum adds. “It appears that the company sees the most opportunity for M&A in the nutrition and ingredients division,” she says. IFF has made several acquisitions since late 2018, with a focus on food ingredients and technology access.

By Vincent Valk

Source: Chemical Week

comments closed

Related News

June 24, 2022

Carlsberg announces resignation of CFO Heine Dalsgaard

Food & Drink

Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.

June 24, 2022

Kellogg to split into three companies, focus on snacks

Food & Drink

Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.

June 24, 2022

Mondelēz to buy energy bar company Clif Bar for $2.9bn

Food & Drink

The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.