2024-03-20 11:47:46 ET
Summary
- International Flavors & Fragrances Inc. has been struggling since its acquisition of part of the DuPont business, resulting in stagnant sales growth and higher costs.
- International Flavors & Fragrances divested its cosmetic ingredients business to Clariant for $810 million, reducing leverage and instilling confidence in investors.
- The company also reached a deal with Roquette to sell its Pharma Solutions unit for up to $2.85 billion, further addressing leverage concerns.
- With leverage down a lot, and the dividend being cut, leverage concerns will come down as focus on margins and growth will be drivers going forward.
In November, I believed that shares of International Flavors & Fragrances Inc. ( IFF ) were seeing a small recovery, driven by a nice divestment. This marked a small green shoot after the company has been struggling since the acquisition of part of the DuPont business, resulting in stagnant sales growth, higher costs and leverage overhang for years....
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For further details see:
International Flavors & Fragrances: Turning The Ship