1. International Flavors & Fragrances Inc. (NYSE:IFF)
Revenue CAGR: 17.20%
Market Capitalization: $21.88 billion
International Flavors & Fragrances Inc. (NYSE:IFF) produces and sells ingredients for food, beverages, personal care, and pharmaceuticals. There are four main segments the company operates through: Nourish, Health & Biosciences, Scent, and Pharma Solutions.
For the full year ended December 31, 2024, International Flavors & Fragrances Inc. (NYSE:IFF) reported $11.48 billion in net sales, which remained flat year-over-year. However, on a constant exchange rate basis, due to the stable performance of Scent and Health & Biosciences, sales increased by 6%. The adjusted operating EBITDA increased by 16% to $2.21 billion, driven by cost efficiencies and volume gains. As a result, the free cash flow net of capital expenditures reached $607 million, strengthening its balance sheet.
Looking forward, International Flavors & Fragrances Inc. (NYSE:IFF) predicts $10.6 billion to $10.9 billion in sales for 2025. This represents a projected growth of 1% to 4% at constant exchange rates. Adjusted operating EBITDA is expected to range from $2 billion to $2.15 billion, reflecting a 5% to 10% improvement on a YoY basis.
However, the company expects challenges from foreign exchange fluctuations and the planned divestiture of Pharma Solutions by June 30, 2025. Nevertheless, the company remains focused on driving volume growth, improving margins, and optimizing the portfolio. Thus, International Flavors & Fragrances Inc. (NYSE:IFF) makes it to our list of the top high growth chemical stocks to buy.
Overall, Flavors & Fragrances Inc. (NYSE:IFF) ranks first on our list of the high growth chemical stocks to buy. While we acknowledge the potential of IFF, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IFF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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