International Flavors & Fragrances Shares Are Up: Here's Why

International Flavors & Fragrances Inc IFF shares are trading higher after it appointed a new CEO and reaffirmed FY23 guidance and strategic plan.

The company disclosed the appointment of J. Erik Fyrwald as Chief Executive Officer and member of the IFF Board of Directors, succeeding Frank Clyburn, effective February 6, 2024. 

Clyburn will work with Fyrwald to ensure a seamless transition until March 31, 2024, and further serve in an advisory capacity through December 2024. Fyrwald, most recently, served as Chief Executive Officer of Syngenta.

Board Chair Roger W. Ferguson, Jr. said, “The Board is confident that Erik is the right executive to shepherd IFF through its next chapter as we execute on our strategic plan with a focus on driving long-term, profitable growth.”

FY23 Outlook: The company expects sales to be in line with its previously stated guidance range of $11.3 billion to $11.6 billion (vs. consensus: $11.47 billion). 

Also, it continues to expect adjusted operating EBITDA to be at the mid to high end of its previously stated guidance range of $1.85 billion to $2.0 billion.

Strategic Update: IFF continues to execute its portfolio optimization initiatives.

Most recently, the company sold its Cosmetic Ingredients business unit for $810 million, which is expected to close in Q1 2024. 

The company continues progressing with additional divesture actions to strengthen its capital structure.

In November last year, IFF disclosed the continuation of the cooperation agreement with Icahn Capital and agreed to renominate one Icahn Director and one mutually agreed director to the board for the 2024 proxy season. 

Also Read: Circular Economy – IFF & Kemira Partner To Launch Renewable Polymer Portfolio

Price Action: IFF shares are trading higher by 2.31% at $81.62 premarket on the last check Friday.