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Jul 19 2021, 07:10 IST/BST
Foods
Ingredients/F&F – positive fundamentals ahead of Q2/H1 results
- Sectors : Foods
- Companies : Givaudan | Kerry Group | Symrise | DSM-Firmenich
Ratings
Ratings and price correct at time of issue
| Company | Rating | Date | Previous Rating | Date | Closing Price |
|---|---|---|---|---|---|
| DSM-Firmenich | OUTPERFORM | 09/10/20 | Neutral | 13/02/20 | 16415c |
| Givaudan | OUTPERFORM | 24/03/20 | Neutral | 21/06/12 | 440900chf |
| Kerry Group | OUTPERFORM | 30/06/09 | N/A | N/A | 12195c |
| Symrise | OUTPERFORM | 24/03/20 | Neutral | 15/01/19 | 12200c |
DAVY VIEW
The forthcoming earnings season will capture the dovetailing of two trends – the persistence of COVID behaviours and the re-opening trade. Fundamentals are underpinned by a sustained renovation cycle (natural, clean label), a new wave of functional-rich product introductions (immunity, natural extracts) and the emergence of more holistic, sustainably-led innovation agendas (integrated supply chains). The global Fragrance and Flavour (F&F)/Ingredients leadership continues to address the market opportunity with a pro-investment mindset, broadening toolkits (technology) and deepening customer relationships (co-creation), evidencing model durability. We expect the Q2/H1 results to confirm positive operating momentum with upbeat commentary on commercial pipelines. We remain bullish on the sector’s long-term prospects.
