12 Best Beauty Stocks to Buy According to Hedge Funds

3. International Flavors & Fragrances Inc. (NYSE:IFF)

Number of Hedge Fund Holders: 52

One of the Best Beauty Stocks and top makers of fragrances worldwide, International Flavors & Fragrances Inc. (NYSE:IFF) is also the largest producer of specialty ingredients globally.

International Flavors & Fragrances Inc. (NYSE:IFF)’s Q3 2024 sales increased 4% year on year to $2.93 billion, owing to broad-based volume recovery across all business areas, backed by market stabilization and strong client demand. Revenue increased 9% on a currency-neutral basis, with double-digit increases in Scent (+10%) and Health & Biosciences (+12%), and high-single-digit growth in Nourish (+7%) and Pharma Solutions (+8%). Adjusted operating EBITDA increased 16% to $568 million as a result of cost reductions and productivity improvements.

International Flavors & Fragrances Inc. (NYSE:IFF) witnessed a double-digit increase in the Nourish area, which accounted for more than half of sales ($1.49 billion), while Functional Ingredients saw high-single-digit volume growth, which was somewhat offset by price changes. At $206 million, Nourish’s adjusted EBITDA increased 18%, with a 13.9% margin. The double-digit rise in Consumer and Fine Fragrances helped the Scent segment post $613 million in revenues, which resulted in a 7% increase in adjusted operating EBITDA to $127 million with a 20.7% margin. While FX headwinds affected other expenses, lower interest costs increased EPS.

For 2024 as a whole, International Flavors & Fragrances Inc. (NYSE:IFF) is raising its expectations. Adjusted operating EBITDA is projected to be at the high end of its previously stated forecast range of $2.1 billion to $2.17 billion, and sales are now expected to be between $11.3 billion and $11.4 billion, rather than the previously anticipated range of $11.1 billion to $11.3 billion. Volume is now forecast to climb 5% to 6%, from the previously expected range of 3% to 5%, with gains throughout the portfolio.

Robert Rodriguez And Steven Romick’s First Pacific Advisors LLC was the largest stakeholder in the company among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 4 million shares worth $420.43 million as of Q3.