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International Flavors & Fragrances Inc IFF

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

No Changes to Our Outlook as IFF Announces CEO Will Retire in Early 2022; Shares Fairly Valued

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

On Sept. 30, International Flavors and Fragrances announced that CEO and board chair Andreas Fibig plans to retire. Fibig will remain in his current roles until a successor is named, which is expected in early 2022. Fibig will then stay on for a period of time to support the transition to the new CEO, then he will retire and step down from the board. IFF recently acquired the DuPont nutrition and biosciences business earlier this year. As such, we think the next CEO will continue the company's current strategy to execute on the cost savings synergies from integrating the DuPont business and repay debt to reduce the company's elevated leverage. With no changes to our outlook, we maintain our $140 per share fair value estimate for IFF. Our wide moat rating is also unchanged.

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Company Profile

Business Description

International Flavors & Fragrances produces ingredients for the food, beverage, health, household goods, personal care, and pharmaceutical industries. The company makes proprietary formulations, partnering with customers to deliver custom solutions. The nourish segment, which generates roughly half of revenue, is a leading flavor producer and also sell texturants, plant-based proteins, and other ingredients. The health and biosciences business, which generates around one fourth of revenue, is a global leader in probiotics and enzymes. IFF is also one of the leading fragrance producers in the world. The firm also sells pharmaceutical ingredients such as excipients and time-release polymers.

Contact
521 West 57th Street
New York, NY, 10019-2960
T +1 212 765-5500
Sector Basic Materials
Industry Specialty Chemicals
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 13,700