International Flavors&Fragrances Inc.

Still, IFF's cost pressures will accelerate amid the current inflationary operating environment, including higher freight, fuel, and raw material costs (such as for sweeteners, soy, and vegetable oils). In addition, its margins have suffered due to recent supply chain disruptions, which the company continues to recover from, including the temporary shutdowns of two of its plants in the Midwestern U.S. because of severe weather. The company will likely partially offset these margin headwinds by increasing its pricing and continuing to reduce its costs. IFF also remains on track to realize about $45 million of post-merger cost synergies in fiscal year 2021 and we expect it to realize $300 million of annual run rate synergies by fiscal year 2023. Given the

...Our operating outlook for the newly merged company is modestly lower than our initial expectations due to input-cost inflation, though we anticipate its top-line performance will steadily improve and expect its post-merger cost cutting to partially offset the inflationary headwinds. International Flavors & Fragrances Inc.'s (IFF) first-quarter operating performance was largely in line with our expectations as its product segments that are benefitting from the conditions amid the coronavirus pandemic continued to perform well (including flavors, fragrances, home and personal care, and pharmaceutical solutions). In addition, the outlook for the underperforming segments of its portfolio (such as food design, cultures and enzymes, and animal nutrition) will likely improve sequentially in the coming quarters as global economies slowly reopen, demand returns, and the company laps the comparisons with its weaker performance last year. As such, we expect IFF to accelerate the expansion of its sales...

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