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22 Jun 2020
CEO conference feedback
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CEO conference feedback
Kerry Group Plc Class A (KYGA:LON), 8,070 | Novonesis A/S Class B (NZYM:WBO), 0 | Croda International Plc (CRDA:LON), 4,645 | International Flavors & Fragrances Inc. (0RF3:LON), 0 | Symrise AG (SY1:WBO), 0 | SPDR Morningstar Multi-Asset Global Infrastructure UCITS ETF (GIN:LON), 0
- Published:
22 Jun 2020 -
Author:
Heidi Vesterinen -
Pages:
29
What are the latest trends in ingredients? We present feedback from seven companies
We recently had the pleasure of hosting Croda, DSM, Givaudan, IFF, Kerry, Novozymes and Symrise at our 22nd Exane BNP Paribas CEO conference. In this note we summarise some of the key questions / themes raised by investors. We also update our estimates to reflect key learnings and recent moves in FX (USD weakness).
COVID-19: The short and long-term view
What is the latest on Q2? How are the FandFs performing in light of IFF''s profit warning? How will the industry evolve post-COVID?
Innovation: Does it still matter?
What is the latest on innovation, with customer launches appearing to have stalled?
Emerging markets: What is the outlook?
Will the emerging markets remain a long-term growth driver, considering the likely implications of COVID-19?
Competition: How will IFF + DuPont NandB impact the sector?
How does the merger impact your competitive positioning? Will we see more MandA?
ESG: Does sustainability still matter?
What do you contribute to making the world more sustainable?
We prefer Kerry (+) and Symrise (+), and cut IFF (-) to Underperform
Kerry and Symrise are our top picks: we see Taste and Nutrition emerging much stronger post crisis, as THE go-to partner in food and beverage. Symrise should outgrow its peers (Q2 and FY) given its differentiation. We cut IFF to Underperform, on the expectation that growth will remain challenged (and underperform peers) this year.