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International Flavors (IFF) Encapsulates Vegan Supplements

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International Flavors & Fragrances Inc. (IFF - Free Report) announced that its leading patented SeaGel® technology successfully incorporated high-viscosity liquid and semi-liquid nutritional components in softgel dietary supplement applications. This underlines the company's ongoing dedication to addressing softgel technology difficulties for nutritional supplements

International Flavors encapsulated NovaSOL Curcumin and NovaSOL Curcumin/Boswellia from the German B2B developer of liquid colloidal formulations, AQUANOVA AG. This is the first time AQUANOVA has successfully encapsulated one of its products in a vegan softgel.

Normally delivering plant-based ingredients, especially in softgel applications are considered difficult due to complex development and formulation challenges. IFF’s technological breakthrough will enable manufacturers to create high-quality plant-based soft-shell capsules that outperform traditional animal-based gelatin for complex ingredients, while also meeting increasing consumer demand for plant-based supplements.

Customers around the world have been using SeaGel technology in non-gelatin soft capsules containing a diverse range of nutrient ingredients for decades. It offers improved encapsulation efficiency and good seal strength.

International Flavors has been benefiting from its innovations. Rising demand for flavors and fragrances, and acquisitions are also driving growth. However, supply-chain issues, and high raw material, energy and logistics costs are impacting International Flavors’ results. Its volumes are bearing the brunt of low consumer spending.

The company reported adjusted earnings of 97 cents per share in fourth-quarter 2022, marking a decline of 12% from the year-ago quarter. Net sales were $2,844 million in the December-end quarter, down 6.2% from the year-ago quarter. In the quarter, currency-neutral sales were up 4%, aided by double-digit growth in Pharma Solutions and mid-single-digit growth in the Scent and Nourish segment.

Price Performance

In the past year, International Flavors’ shares have lost 31.2% compared with the industry’s decline of 25.3%.

 

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Zacks Rank & Stocks to Consider

International Flavors currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Consumer Staples sector are e.l.f. Beauty, Inc. (ELF - Free Report) , L'Oreal (LRLCY - Free Report) and Coty (COTY - Free Report) . ELF flaunts a Zacks Rank #1 (Strong Buy) at present, and LRLCY and COTY have Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for e.l.f. Beauty’s fiscal 2023 earnings is pegged at $1.42 per share. This indicates a 69.1% increase from the prior-year reported figure. The consensus estimate for fiscal 2023 earnings has moved 26.8% north in the past 60 days. ELF’s shares have gained 214.1% in the past year.

The Zacks Consensus Estimate for L'Oreal’s 2023 earnings per share is pegged at $2.50, suggesting an increase of 5.5% from that reported in the last year. The consensus estimate for 2023 earnings moved 2.7% upward in the last 60 days. LRLCY’s shares have gained 10.7% in the past year.

The Zacks Consensus Estimate for Coty’s 2023 earnings is pegged at 37 cents per share. This indicates a 32.14% increase from the prior-year reported figure. The consensus estimate for 2023 earnings has moved north by 15.6% in the past 60 days. COTY’s shares have gained 29.5% in the past year.


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