Announces $250 Million Share Repurchase Authorization
NEW YORK--(BUSINESS WIRE)--Aug. 6, 2015--
Regulatory News:
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris:
IFF), a leading global creator of flavors, fragrances and cosmetic
actives for consumer products, announced that its Board of Directors has
authorized a quarterly dividend of $0.56 per share of the Company’s
common stock, an increase of $0.09 or 20% from the current quarterly
dividend of $0.47 per share, which will result in a more competitive
dividend yield. The quarterly dividend will be payable on October 6,
2015 to shareholders of record as of September 25, 2015.
The Company also announced that its Board of Directors has approved a
$250 million share repurchase authorization through 2017, which is in
addition to the approximately $50 million remaining on its current
authorization. At the current market price, the combined authorization
would enable the Company to repurchase more than 2.5 million shares, or
approximately 3% of the shares currently outstanding. The purchases will
be made from time to time on the open market or through private
transactions as market and business conditions warrant. Repurchased
shares will be placed into treasury stock.
Over the past five years, the Company has returned more than $660
million to shareholders through a combination of dividends and gross
share repurchases, or 39% of adjusted net income.
Andreas Fibig, IFF’s Chairman and CEO, said, “Vision 2020 is all about
building greater differentiation, accelerating growth and creating
incremental shareholder value. Today’s announcement reflects the Board’s
confidence in our long-term strategy, which when combined with our
robust cash flow generation and strong balance sheet, allows us to
support our growth aspiration while simultaneously increasing cash
returned to shareholders. The 20% increase in the quarterly dividend and
$250 million share repurchase authorization is expected to lead to an
approximately 55% payout ratio of our estimated adjusted net income in
2015 – in line with our recently communicated 50% to 60% target and
above our 5-year average historical payout.”
About International Flavors & Fragrances Inc.
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris:
IFF)is a leading global creator of flavors and fragrances used in a wide
variety of consumer products. Consumers experience these unique scents
and tastes in fine fragrances and beauty care, detergents and household
goods, as well as beverages, sweet goods and food products. The Company
leverages its competitive advantages of consumer insight, research and
development, creative expertise, and customer intimacy to provide
customers with innovative and differentiated product offerings. A member
of the S&P 500 Index, IFF has more than 6,200 employees working in 32
countries worldwide. For more information, please visit our website at www.iff.com;
follow us on Twitter
and LinkedIn.
Cautionary Statement Under The Private
Securities Litigation Reform Act of 1995
This press release includes “forward-looking statements” under the
Federal Private Securities Litigation Reform Act of 1995, including
statements regarding our Vision2020 strategy, the timing and amount of
share repurchases, the expected payout ratio in 2015 and our ability to
generate shareholder returns and sustain our long-term growth. These
forward-looking statements are qualified in their entirety by cautionary
statements and risk factor disclosures contained in the Company’s
Securities and Exchange Commission filings, including the Company’s
Annual Report on Form 10-K filed with the Commission on March 2, 2015.
The Company wishes to caution readers that certain important factors may
have affected and could in the future affect the Company’s actual
results and could cause the Company’s actual results for subsequent
periods to differ materially from those expressed in any forward-looking
statements made by or on behalf of the Company. With respect to the
Company’s expectations regarding these statements, such factors include,
but are not limited to: (1) the Company’s ability to implement its
Vision 2020 strategy, including building differentiation and
accelerating profitable growth to achieve long-term financial targets;
(2) volatility and increases in the price of raw materials, energy and
transportation; (3) the economic and political risks associated with the
Company’s international operations; (4) the Company’s ability to benefit
from its investments and expansion in emerging markets; (5) fluctuations
in the quality and availability of raw materials; (6) changes in
consumer preferences and demand for the Company’s products or a decline
in consumer confidence and spending; (7) the Company’s ability to
implement its business strategy, including the achievement of
anticipated cost savings, profitability, realization of price increases
and growth targets; (8) the Company’s ability to successfully develop
new and competitive products that appeal to its customers and consumers;
(9) the impact of a disruption in the Company’s supply chain or its
relationship with its suppliers; (10) the impact of currency
fluctuations or devaluations in the Company’s principal foreign markets;
(11) any adverse impact on the availability, effectiveness and cost of
the Company’s hedging and risk management strategies; (12) the effects
of any unanticipated costs and construction or start-up delays in the
expansion of the Company’s facilities; (13) the Company’s ability to
successfully execute and to increase sales through acquisitions,
collaborations and joint ventures; (14) the Company’s ability to manage
unanticipated costs and other adverse financial impacts in connection
with our acquisitions; (15) the effect of legal and regulatory
proceedings, as well as restrictions imposed on the Company, its
operations or its representatives by U.S. and foreign governments; (16)
adverse changes in federal, state, local and foreign tax legislation or
adverse results of tax audits, assessments, or disputes; and (17)
changes in market conditions or governmental regulations relating to our
pension and postretirement obligations. New risks emerge from time to
time and it is not possible for management to predict all such risk
factors or to assess the impact of such risks on the Company’s business.
Accordingly, the Company undertakes no obligation to publicly revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
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Source: International Flavors & Fragrances Inc.
International Flavors & Fragrances Inc.
VP, Global Corporate
Communications & Investor Relations:
Michael DeVeau,
212-708-7164