How Is International Flavors & Fragrances Inc Likely To Grow In The Next 2 Years?
International Flavors & Fragrances Inc (NYSE: IFF), has displayed decent growth in revenue in the last few quarters. During the recent annual earnings the company’s revenue grew by 9% at $3.6 Billion y-o-y for the full year, over 2017’s $3.3 Billion, driven by meaningful organic growth across both its segments. Both the Flavor and Fragrance segments grew by 9% each on y-o-y basis, with strong double-digit growth from EAME, North America, and Greater Asia regions. The Flavor segment benefited by growth in all its categories, and the contribution of sales related to the acquisitions of David Michael and PowderPure, whereas the Fragrance segment benefited by broad-based contributions from the organic business and sales related to the acquisition of Fragrance Resources. In all, IFF delivered a solid FY 2017 as the company remained focused towards cost saving, productivity initiatives, and value-enhancing acquisitions.
Going forward, we are projecting revenues for the two segments of the Company to grow as the company is working on their long-term strategic plan for sustainable growth. Overall, we anticipate the company’s revenue to grow at a compounded annual growth rate (CAGR) of 5.9%. We have built an explanatory dashboard Sources of Growth At International Flavors & Fragrances Inc in The Next Two Years to outline major drivers of revenue over the next two years.
Estimating International Flavors & Fragrances Inc’s Revenue Growth
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International Flavors & Fragrances Inc’s generates revenue from two reportable segments of the Company: Flavor and Fragrance Segment.
As per our analysis, and in line with the guidance provided by the company, we believe that both the reported segments of the company will report progressive growth in the next two years.
For 2018, The company is more then ever committed to deliver innovation that is truly differentiated and generate higher returns via continued cost and productivity initiatives, and ultimately generate strong returns for their shareholders for the year ahead. All these factors, coupled with strong sales momentum, will enable IFF to continue to grow its top line. Our estimates have been highlighted in our dashboard above. You can make changes to our assumed figures to arrive at your own revenue and growth estimates for the company.
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