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.
Vision 2021
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
since
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.
Financial Guidance
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,
View source version on businesswire.com: https://www.businesswire.com/news/home/20190605005451/en/
Source:
Michael DeVeau
Head of Investor Relations and Communications &
Divisional CFO, Scent
212.708.7164
Michael.DeVeau@iff.com