International Flavors (IFF) Announces Creative Center Completion
International Flavors & Fragrances Inc. IFF announced the completion of its North American Creation and Design center in Kansas’ New Century. This makes the New Century facility IFF’s second-largest creative center in North America.
IFF intends to improve customer service and boost innovative product development with the support of this new facility.
The New Century facility features 10 labs and six cutting-edge pilot plants. It houses two new flavor creation labs and a new lab solely for pet food development. The existing food application design laboratories for dairy, bars, culinary and bakery have also been expanded at the center.
The IFF Creative Centre combines the company's flavor and ingredient expertise with its food design capabilities to better serve the region's food industry's growth. The company can increase its speed-to-market by integrating flavors, ingredients and food design in one space. Moreover, this capability expansion in New Century provides IFF's customers a substantial edge.
This investment reinforces International Flavors ' end-to-end FF PRODUCT DESIGN approach. This approach combines IFF's expertise in ingredients and flavors with a deep understanding of consumer behavior to develop future-proof concepts and experiences.
International Flavors is well-poised to benefit from demand for a variety of consumer products containing flavors and fragrances, going forward. Anticipated growth in emerging markets will likely be a key catalyst. However, it has been witnessing lower volumes since last year as customer spending was muted amid the inflationary scenario.
In the second quarter of 2023, the company reported adjusted earnings of 86 cents per share, missing the Zacks Consensus Estimate of adjusted earnings of $1.10 per share. The bottom line declined 44% from the year-ago quarter. Net sales were $2,929 million, which missed the Zacks Consensus Estimate of $3,107 million. On a comparable basis, currency-neutral sales were down 4% from the prior-year quarter.
Price Performance
In the past year, International Flavors’ shares have lost 48.2% compared with the industry’s 30% decline.
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Zacks Rank & Stocks to Consider
International Flavors currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Consumer Staples sector are Fomento Económico Mexicano, S.A.B. de C.V. FMX, e.l.f. Beauty, Inc. ELF and Ingredion Incorporated INGR. FMX flaunts a Zacks Rank #1 (Strong Buy) at present, and ELF and INGR have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fomento Económico Mexicano has an average trailing four-quarter earnings surprise of 6.1%. The Zacks Consensus Estimate for FMX’s fiscal 2023 earnings is pegged at $5.62 per share. The consensus estimate for 2023 earnings has moved 23.2% north in the past 60 days. Its shares gained 76.6% in the last year.
e.l.f. Beauty has an average trailing four-quarter earnings surprise of 108%. The Zacks Consensus Estimate for ELF’s fiscal 2024 earnings is pegged at $2.36 per share. This indicates a 42.1% increase from the prior-year reported figure. The consensus estimate for fiscal 2024 earnings has moved 29.6% north in the past 60 days. ELF’s shares have gained 244% in the past year.
The Zacks Consensus Estimate for Ingredion’s fiscal 2023 earnings per share is pegged at $9.23, indicating growth of 23.9% from the prior-year actual. Earnings estimates have moved 1.5% north in the past 60 days. INGR’s shares have gained 3.9% in the past year.
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Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report
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