News

International Flavors & Fragrances IFF revealed that it completed the previously announced sale of its Cosmetic Ingredients business to Clariant. The Cosmetic Ingredients unit includes the Lucas Meyers Cosmetics and IBR brands and operates six research and development, and production sites globally.

This marks another step in the company’s ongoing efforts to optimize and streamline its portfolio to drive simplification and growth. In December 2022, the company announced a new strategic and financial vision, which among other things, consisted of a renewed growth-focus strategy, enhanced cost & productivity initiatives, and a redesigned operating model.

International Flavors intends to transform its operating model into a more customer-centric and market-backed one. It will conduct business in three core end markets, Food and Beverage, Home and Personal Care and Health.

IFF plans to step up its investment in high-return businesses with attractive markets such as Flavors, Fragrances, Health, Cultures & Food Enzymes. To this end, the company had earlier sold Microbial Control, a portion of the Savory Solutions business and Flavor Specialty Ingredients businesses.

On Mar 19, 2024, IFF announced that it had entered into an agreement to sell its Pharma Solutions business to Roquette for an enterprise value of up to $2.85 billion.

IFF’s Pharma Solutions business is a well-established developer and manufacturer of pharmaceutical excipients and includes its Global Specialty Solutions business, which supports industrial and methyl cellulosic food applications.

The unit operates 10 research and development, and production sites across the globe, employing around 1100 people. It generated revenues of around $1 billion in 2023. The deal is expected to close in the first half of 2025, subject to customary closing conditions.

These endeavors will help International Flavors focus on its core business operations, strengthen its balance sheet and maximize shareholder return.

In the past year, International Flavors’ shares have fallen 7% compared with the industry’s 20.3% decline.

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Zacks Rank & Stocks to Consider

International Flavors currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Consumer Staples sector are Pilgrim's Pride PPC, Vital Farms VITL and e.l.f. Beauty, Inc. ELF. PPC sports a Zacks Rank #1 (Strong Buy) at present, and VITL and ELF have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Pilgrim's Pride’s fiscal 2024 earnings per share is pegged at $2.97, indicating growth of 75.7% from the prior-year actual. Earnings estimates have moved up 20% over the past 60 days. Shares of PPC have gained 48% in the past year.

Vital Farms has an average trailing four-quarter earnings surprise of 155.4%. The Zacks Consensus Estimate for VITL’s fiscal 2024 earnings is pegged at 76 cents per share. The consensus estimate has moved 19% north in the past 60 days. The earnings estimate suggests year-over-year growth of 28.8%. Its shares gained 49% in the last year.

e.l.f. Beauty has an average trailing four-quarter earnings surprise of 69.2%. The Zacks Consensus Estimate for ELF’s fiscal 2024 earnings has moved 13% north in the past 60 days and is currently pegged at $3.04 per share. The estimate indicates an 83.1% increase from the prior-year reported figure. ELF shares have gained 157% in the past year.

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