By Denny Jacob
International Flavors & Fragrances (IFF) experienced a 5.1% increase in its shares, reaching $76, following a recent cooperation agreement with Icahn Capital and their affiliates. This positive development comes alongside the company's latest quarterly results.
Despite a decline of approximately 31% on the year, IFF remains hopeful for the future. Known for manufacturing flavors and fragrances used in various industries such as food, beverage, personal care, and household products, IFF actively disclosed the continuation of their cooperation agreement with Icahn Capital and its affiliates. The key provisions of this agreement involve the renomination of one Icahn director and one mutually agreed director to IFF's board for the 2024 proxy season.
Carl Icahn, the CEO of Icahn Capital, expressed his confidence in IFF's management team and board, stating, "I believe the IFF Board and management team are poised to capture further value for shareholders as they continue on their strategic transformation to optimize the portfolio."
In addition to this cooperative effort, IFF released its quarterly results for the three months ended September 30th. While sales witnessed an 8% decline compared to the previous year, the company managed to swing from a loss to a net income during the same period.
Furthermore, IFF announced that it anticipates achieving the higher end of its adjusted operating earnings before interest, taxes, depreciation, and amortization guidance. They now expect to reach a range between $1.85 billion and $2 billion in earnings primarily due to favorable price to inflation and increased productivity.