International Flavors & Fragrances Inc. (IFF), the leading creator and manufacturer of flavor and fragrance compounds, was recently initiated as “Neutral.”
 
The company regularly creates new compounds to meet the changing characteristics and composition of customers’ end products. The company’s success banks on its ability to innovate according to evolving consumer needs and expectations. This is going to continue in the long term.
 
However, the cyclical nature of the flavors and fragrances industry hinders the company’s growth. Moreover, the intense competition within the industry stretches both top-line and bottom-line results.
 
Nevertheless, International Flavors is tapping every means to reduce cost. Thus, its strategy and ability to reduce operating costs will enhance margin levels in future. The company continues to focus on creating processes, technologies and delivery systems, which include a significant financial commitment to research and development. During the nine months ended September 30, 2009, the company has reported research and development of $151.2 million, down 6% compared to nine months ended September 30, 2008. However, revenues decreased 6% year over year and reached $1,740.5 million.
 
International Flavors can increase sales by grabbing a greater share of customers across multiple categories in both developed and emerging markets. The company’s proprietary tools of consumer insight help drive brand loyalty and support its presence in the marketplace. 
Read the full analyst report on “IFF”
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