Heartland Mid Cap Value Fund highlighted International Flavors & Fragrances as a new deep-value holding in its second-quarter 2026 investor letter. The fund noted that IFF trades at 12.23 times forward EBITDA, a steep discount to industry leader Givaudan at 19.14 times, following more than two years of portfolio streamlining toward higher-margin businesses. IFF’s profits are now split across Taste at 30%, Health & Biosciences at 37%, and Scent at 32%, with encapsulated fragrance technology driving leadership in fabric care and expansion into scent boosters, shampoos, and body washes. Management recently instituted the company’s first share buyback program in six years, signaling confidence in closing the valuation gap. The fund returned 9.90% in the quarter versus the Russell Midcap Value Index’s 13.40%, with underperformance driven by negative stock selection.
International Flavors & Fragrances IncFund highlights IFF as a deep-value holding with a discounted valuation and a new share buyback program signaling confidence.
Givaudan SA