International Flavors Opens Global Financial Service Center

In an effort to consolidate global financial processes, International Flavors & Fragrances Inc. (NYSE:IFF) has opened a new global financial service center in Budapest, Hungary. Located in Mill park, the service center is part of the company’s multi-year effort to optimize its finance operating model.

Budapest offers a flourishing business environment and has a robust infrastructure and sophisticated workforce.

The service center will reach an employee count of more than 100 by the end of this year with scope to accommodate more with the continuing recruiting process and expanding services. The strategic location of Mill park provides the company with a sustainable work environment, easy access to public transport and excellent amenities.

Shares of International Flavors have lost around 4.8% in the past year against the industry’s 9% growth.

For 2019, the company has issued sales guidance of $5.2-$5.3 billion. Adjusted earnings per share are expected in the band of $4.90-$5.10 and adjusted earnings, excluding amortization, will likely be $6.30 to $6.50. However, it expects raw material costs to rise in the current year.

The global market for flavors and fragrances continues to grow, propelled by rising demand for a variety of consumer products containing flavors and fragrances, which bodes well for the company. Moreover, it will gain from cost-cutting efforts, productivity initiatives, and acquisitions despite input-cost inflation, unfavorable foreign currency and high debt levels.

Internationa Flavors & Fragrances, Inc. Price and Consensus

Zacks Rank & Stocks to Consider

International Flavors currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Basic Materials sector are Kirkland Lake Gold Ltd. (TO:KL) , Ingevity Corporation (NYSE:NGVT) and Innospec Inc. (NASDAQ:IOSP) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kirkland has an estimated earnings growth rate of 47% for the ongoing year. The company’s shares have rallied 105.6% in the past year.

Ingevity has an expected earnings growth rate of 17.9% for 2019. The company’s shares have gained 34.8% in the past year.

Innospec has a projected earnings growth rate of 3.5% for the current year. The stock has appreciated 17.3% in a year’s time.

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