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IFF Announces Vision 2021 and Confirms 2019 and Long-Term Guidance
“We are excited to share our vision for the future of IFF. The Frutarom acquisition significantly increased our product portfolio, customer base and capabilities and solidified our position as a global leader in taste, scent and nutrition,” said Andreas Fibig, Chairman and CEO at IFF.
Following IFF’s successful implementation of Vision 2020 and its acquisition of Frutarom, the Company has launched its new strategy to drive IFF’s top- and bottom-line goals. Vision 2021 has four pillars:
1) Unlocking growth opportunities – capitalizing on its expanded product
portfolio, broader customer base and extensive geographic presence; plus
cross-selling and integrated solutions which are expected to deliver
2) Driving innovation – investing in high-growth and high-return platforms to continue to drive its R&D pipeline and accelerate long-term growth
3) Managing the Portfolio – focus on optimizing its portfolio to maximize value creation
4) Accelerating Business Transformation – successfully integrating Frutarom while delivering
“Our Vision 2021 Strategy has been designed to leverage our newly combined organization, our broader product portfolio, increased naturals portfolio, expanded market access, broader customer base and greater innovation pipeline to drive total shareholder return,” added Mr. Fibig. “We are focused on disciplined execution and capital stewardship.”
To capitalize on its broadened portfolio and align with its Vision 2021 strategy, the company is announcing a new organizational structure, to be fully implemented over the next twelve months. IFF will be organized intro three business segments: Taste, Scent and Nutrition & Ingredients.
“We have designed an organization that will allow us to build on our business and focus on accelerating high-growth and high-margin platforms,” said Fibig. “We will capitalize on our combined capabilities to drive revenue synergies and efficiencies to better serve our thirty-nine thousand customers globally.”
Nicolas Mirzayantz will continue to lead Scent, a position he has held
Yoni Glickman, who presided over legacy Frutarom’s Natural Product Solutions will lead Nutrition & Ingredients. “Yoni has proven he has the right combination of Naturals expertise, market knowledge and deep understanding across Nutrition & Ingredients categories to lead this new strategic business unit,” said Fibig.
The organization is intended to be fully implemented over the next twelve months. More details on the new organization will be announced during the Investor Day meeting.
The Company reconfirms its long-term financial targets for 2019-2021: 5-7% currency neutral sales growth, and 10%+ currency neutral EPS growth, excluding amortization. The company reconfirms its objective to reach <3x Net Debt / EBITDA between 18-24 months and >12% total shareholder return by 2021. For the full year 2019, the Company also reconfirms its guidance of
Investors may access the live webcast and accompanying slide presentation on the Company's website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available for replay.
Cautionary Statement Under The Private Securities Litigation Reform
Act of 1995
This press release includes “forward-looking statements” under the Federal Private Securities Litigation Reform Act of 1995, including statements regarding guidance for full year 2019, long-term financial objectives, expected impact of Vision 2021 on future growth and profitability, and the expected impact of the Company’s new organizational structure to be implemented within the next 12 months. These forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in the Company’s
Forward-Looking Non-GAAP Metrics
This press release includes the Company’s expectations for (i) sales growth for 2019 and long-term currency neutral sales growth; (ii) EPS ex amortization growth for 2019 and long-term currency neutral EPS ex amortization growth; (iii) long-term total shareholder return growth, and (iv) net debt to adjusted EBITDA guidance for 2020 and 2021. The closest corresponding GAAP measure to these non-GAAP measures and a reconciliation of the differences between the non-GAAP metric expectation and the corresponding GAAP measure is not available without unreasonable effort due to length of the forecasted period and potential variability, complexity and low visibility as to items such as future contingencies and other costs that would be excluded from the GAAP measure, and the tax impact of such items, in the relevant future period. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.
Welcome to IFF
At IFF (NYSE:IFF) (Euronext Paris:IFF) (TASE:IFF), we’re using Uncommon Sense to create what the world needs. As a collective of unconventional thinkers and creators, we put science and artistry to work to create unique and unexpected scents, tastes, experiences and ingredients for the products our world craves. Learn more at iff.com, Twitter,
Head of Investor Relations and Communications & Divisional CFO, Scent