New York-based International Flavors & Fragrances Inc. ( IFF ) recently announced expansion of its flavors facility in South Africa. The facility, located in Isando, will strengthen the company's footholds in the region and ensure market share enhancement in the quarters ahead.
As disclosed, the expanded facility will house laboratories for flavors creation as well as application, and a pilot plant for serving the company's growing customer base in the country.
In Feb 2015, International Flavors & Fragrances opened a new flavors facility near Chicago for primarily catering to the demand of food and beverage industry in the region. Prior to that, in Nov 2014, the company opened a new flavors creative facility in Jakarta, Indonesia.
We believe that reviving global economy and better consumer spending is a positive driver for the flavors and fragrances industry. For International Flavors & Fragrances, new business wins, substantial geographical diversifications, wide product lines, continuous accomplishments in research and intense consumer insight have been the prime growth factors over time.
For 2015, International Flavors & Fragrances expects its flavors business to exhibit strong sales momentum. Also, it predicts revenues to come in line with its long-term target range of 4−6%, while operating profits are projected at the lower-end of 7−9%. For earnings per share, the company predicts growth in high-single digits.
The Zacks Consensus Estimate for the stock is pegged at $5.50 for 2015 and $6.03 for 2016, reflecting year-over-year growth of 8.3% and 9.6%, respectively.
With a market capitalization of $10 billion, International Flavors & Fragrances presently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include Axalta Coating Systems Ltd. ( AXTA ), Penford Corporation ( PENX ) and NL Industries Inc. ( NL ). While both Axalta Coating Systems and Penford Corporation sport a Zacks Rank #1 (Strong Buy), NL Industries carries a Zacks Rank #2 (Buy).