Israel acquisition boosts IFF’s results

Article Excerpt

INTERNATIONAL FLAVORS & FRAGRANCES INC. $100 (New York symbol IFF; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 81.0 million; Market cap: $8.1 billion; Priceto- sales ratio: 2.7; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.iff.com) makes over 36,000 compounds that improve the taste of food and the smell of consumer products. In the third quarter of 2014, IFF’s sales rose 4.3%, to $773.8 million from $742.3 million a year earlier. That’s partly due to Israel-based Aromor Flavors and Fragrances, which IFF bought for $102.5 million in January 2014. Stronger demand in developing countries also contributed to the gain. Earnings improved 8.4%, to $107.4 million from $99.0 million. Per-share earnings rose 9.2%, to $1.31 from $1.20, on fewer shares outstanding. Excluding unusual items, such as costs to integrate Aromor, earnings per share gained 8.2%, to $1.32 from $1.22. IFF spends over 8% of its sales on research, so it’s more profitable than it appears. IFF is a buy. buy. …