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Feb 14 2019, 17:00 GMT
Foods
IFF Q4 2018: operating margin headwinds persist
- Sectors : Foods
- Companies : Givaudan | Kerry Group | Symrise
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| Givaudan | NEUTRAL | 21/06/12 | N/A | N/A | 246700chf |
| Kerry Group | OUTPERFORM | 30/06/09 | N/A | N/A | 9140c |
| Symrise | NEUTRAL | 15/01/19 | Outperform | 21/06/12 | 7678c |
DAVY VIEW
Margin headwinds for IFF look set to persist through 2019 with its raw material basket expected to inflate by mid-single-digits. On the conference call, IFF referenced its elevated inventory position, which is not expected to improve until 2020. Under-recovery of input costs is a recurring theme across the flavour and fragrance (F&F) space. IFF remains optimistic on top-line progression, targeting 5-7% organic growth, which will be volume-led. Organic sales for Frutarom were slightly below trend.
