International Flavors & Fragrances Inc
), a leading creator and manufacturer of flavors and fragrances
meant for consumer products, recently confirmed the opening of a
new unit in Delhi, India, to strengthen its flavors business in
International Flavors & Fragrances will primarily utilize
the new entity for serving other companies mainly engaged in the
production of foods, sweets, beverages and dairy goods in the
Indian market. The new facility will accommodate the flavors
business' creative, technical, sensory and marketing divisions.
The company's expansion plans comprising opening of new
facilities and augmenting existing operations, particularly in the
emerging markets, are expected to boost its long-term
potential. Moreover, this move is seen as a positive aspect
for the company's flavors business, which will further enhance the
segment's performance going forward.
Earlier, International Flavors & Fragrances' revenue from
the Flavors business in the first quarter of fiscal 2012 increased
5.0% year over year, on a constant currency basis, to $349.9
million. The revenue from Greater Asia was flat year over year or
up 1% on a constant currency basis.
Additionally, we believe International Flavors & Fragrances
stands in a favorable position to benefit from new business wins,
tremendous geographical diversification and product mix.
Furthermore, the company's continuous accomplishments in research
and strong consumer insight support its growth momentum.
However, it faces fierce competition from its peers such as
Helen of Troy Limited
Physicians Formula Holdings Inc.
Inter Parfums Inc.
The current Zacks Consensus Estimate for the second quarter of
2012 is $1.11, reflecting a year-over-year growth of 6.04%.
Estimates for the fiscal year 2012 and 2013 are $4.00 and $4.34,
representing annual growth of 6.98% and 8.36%, respectively.
We currently maintain a Neutral recommendation on International
Flavors & Fragrances. It carries a Zacks #3 Rank, translating
into a short-term (1-3 months) Hold rating.
PHYSICIANS FORM (FACE): Free Stock Analysis
HELEN OF TROY (HELE): Free Stock Analysis
INTL F & F (IFF): Free Stock Analysis
INTER PARFUMS (IPAR): Free Stock Analysis
To read this article on Zacks.com click here.