Davy Ingredients Handbook – Charting choppy waters

  • Sectors : Foods
  • Companies : Treatt plc | Givaudan | DSM-Firmenich | Kerry Group | Symrise


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 11545c
Givaudan OUTPERFORM 24/03/20 Neutral 21/06/12 291700chf
Kerry Group OUTPERFORM 30/06/09 N/A N/A 9596c
Symrise OUTPERFORM 24/03/20 Neutral 15/01/19 9932c
Treatt plc NEUTRAL 08/04/21 N/A N/A 639p


A sharp de-rating since late 2021 has lowered ingredient sector valuations back to 2017-18 levels. The journey in valuation discovery continues to be influenced by the direction of the risk-free rate. Cost headwinds, notably energy, persist — as such, pricing assumptions are likely to be revised upwards through 2023. Model resilience was a notable feature through the 2009-2010 financial crisis, with consistent organic revenue growth delivery. Volumetric drivers, such as food/beverage renovation and sustainably-led innovation agendas, provide a structural tailwind and defensive attributes – with best-in-class supply chains reaping volume dividends. We side with business models with proven cost-recovery transmission mechanisms and earnings momentum. Our top picks are Symrise and Kerry Group. In this report, we launch our new Ingredients Handbook (72 slides) — click here to download. Q3 results are now a critical watchpoint.

Download full report with analyst certification and important disclosures

Sep 20 2022, 07:00 IST/BST