International Flavors & Fragrances Inc. (NYSE: IFF), a leading global
creator of flavors and fragrances for consumer products, announced that
the Company’s senior executives will offer their perspective on IFF's
Vision 2020 and commentary on the second quarter and full year 2015, at
an investor meeting today in New York City.
“The cornerstone of Vision 2020 is our new purpose statement, ‘We are
the catalyst for discoveries that spark the senses and transform the
everyday,’” said Andreas Fibig, Chairman and CEO. “Building on our
legacy of pioneering firsts, we believe that our strategy will help us
build differentiation and accelerate growth for all our stakeholders.”
The Company’s strategy is built on four pillars and supported by three
enablers.
Win Where We Compete
“We aim to be #1 or #2 with key customers and in strategic categories
and regions. To succeed, we must all be explorers, constantly pushing
each other to take smart risks. This mindset, courage, and drive for the
future is critical to IFF’s Vision 2020 and our team is ready.” Matthias
Haeni, Group President, Flavors
Innovating Firsts
“Whether it’s being first-to-market with a revolutionary fragrance in
response to a pressing consumer demand, cracking the code on a
customer’s need for a breakthrough flavor, or rethinking supply chain
processes that save time and support sustainability, we work together,
leveraging a passionate team and robust intellectual property to deliver
innovative “firsts” to our customers the world over.” Ahmet Baydar,
SVP Research & Development
Become Our Customers’ Partner of Choice
“Nothing succeeds like exceptional partnerships, especially in the
current environment. Our customers will gain additional access and
leverage the full breadth of the added value we bring to them, including
industry-leading consumer insights, robust innovation pipeline, the
highest level of service and impeccable quality. We will bring them our
best.” Nicolas Mirzayantz, Group President, Fragrances
Strengthen and Expand the Portfolio
“The boundaries of our industry are blurring and expanding, and we touch
lives in a myriad of ways. By building on our core strengths and through
strategic acquisitions, partnerships and collaborations, we will grow
our market share and deliver exceptional and multifaceted solutions to
our partners.” Rich O’Leary, Interim CFO
The three enablers to the strategy include Talent and Organization,
with investment in its people; Continuous Improvement, with a
relentless focus on finding efficiencies and streamlining processes to
reinvest in the business; and Sustainability, strengthening
sustainable practices and innovation in every area of the organization.
Financial Guidance
The Company is also announcing its long-term financial targets for
2016-2020. These include 4-6% currency neutral sales growth, 7-9%
currency neutral operating profit growth, and 10% currency neutral EPS
growth. In addition, the Company is targeting $500 million to $1 billion
of sales growth through acquisitions by 2020. Leveraging its strong cash
flow generation and commitment to Vision 2020, the Company intends to
increase its targeted cash return to shareholders to 50-60% of adjusted
net income.
The Company will also provide commentary on the second quarter 2015,
where it expects currency neutral sales growth to be about 5% including
approximately one point impact from Ottens Flavors. In addition, the
Company expects adjusted operating profit in the second quarter to be up
6 to 8% on a currency neutral basis and flat to down low single-digits
on a reported basis. For the full year 2015, the Company expects
currency neutral sales to be in line with its long-term target and
expects adjusted operating profit and adjusted EPS to be at the low-end
of its long-term range, on a currency neutral basis.
“Over the past five years, IFF’s strategy has served us well, putting
key fundamentals and a disciplined approach in place,” continued Mr.
Fibig. “Vision 2020 is a natural evolution and the logical next step
that will provide the fuel we need to accelerate our growth and increase
differentiation. We are here to lead where we compete. We believe our
strong financial foundation, expansion in key markets and investment in
innovation will redefine winning and lead to sustainable, profitable
growth at IFF.”
The live webcast of today’s meeting and accompanying presentation
materials, as well as the U.S. Generally Accepted Accounting Principles
(U.S. GAAP) reconciliation, can be accessed by visiting the Investor
Relations section of www.iff.com.
The meeting will begin at 1:00 pm EDT and the webcast will be available
as an archive on the site for later viewing.
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 outlook for the second quarter and full year
2015, and our ability to generate shareholder returns and sustain our
long-term growth performance. 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) volatility and increases in the price of raw materials, energy
and transportation; (2) the economic and political risks associated with
the Company’s international operations; (3) the Company’s ability to
benefit from its investments and expansion in emerging markets; (4)
fluctuations in the quality and availability of raw materials; (5)
changes in consumer preferences and demand for the Company’s products or
a decline in consumer confidence and spending; (6) the Company’s ability
to implement its business strategy, including the achievement of
anticipated cost savings, profitability, realization of price increases
and growth targets; (7) the Company’s ability to successfully develop
new and competitive products that appeal to its customers and consumers;
(8) the impact of a disruption in the Company’s supply chain or its
relationship with its suppliers; (9) the impact of currency fluctuations
or devaluations in the Company’s principal foreign markets; (10) any
adverse impact on the availability, effectiveness and cost of the
Company’s hedging and risk management strategies; (11) the effects of
any unanticipated costs and construction or start-up delays in the
expansion of the Company’s facilities; (12) the Company’s ability to
successfully identify and execute acquisitions, collaborations and joint
ventures; (13) 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; (14) adverse changes in
federal, state, local and foreign tax legislation or adverse results of
tax audits, assessments, or disputes; and (15) 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.
About International Flavors & Fragrances Inc.
International Flavors & Fragrances Inc. (NYSE: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.
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