AG真人官方

IFF Reports Second Quarter 2025 Results

Reaffirms Full Year 2025 Financial Guidance

Leverage Reduced to 2.5x; Announces new $500M Share Repurchase Authorization

Enters into Definitive Agreement to Sell Soy Crush, Concentrates & Lecithin Business; Evaluating Strategic Alternatives for Food Ingredients Segment

NEW YORK--(BUSINESS WIRE)-- IFF (NYSE: IFF) reported financial results for the second quarter ended June 30, 2025.

Management Commentary

鈥淚FF鈥檚 second-quarter results reflect the progress we are making to strengthen our business and advance our strategic agenda,鈥� said Erik Fyrwald, CEO of IFF. 鈥淥ur teams delivered top-line growth and improved profitability, driven by disciplined execution and a strong focus on productivity. We also made strides in reshaping our portfolio by closing the divestitures of Pharma Solutions and Nitrocellulose, and successfully completing our debt tender offering - reducing leverage to 2.5x, ahead of our target and reinforcing our financial position.鈥�

鈥淎dditionally, we announced the expected divestiture of our soy crush, concentrates, and lecithin business - furthering the evolution of our Food Ingredients portfolio toward more value-added offerings. This move aligns with our margin enhancement strategy and supports our continued evaluation of strategic alternatives for this business.鈥�

鈥淚 am increasingly confident in IFF鈥檚 long-term outlook. With a stronger balance sheet and enhanced financial flexibility, we continue to invest in our highest-return businesses to drive sustainable, profitable growth. The $500 million share repurchase authorization we announced reflects our confidence in IFF鈥檚 long-term value and marks a key milestone in our balanced, disciplined capital allocation strategy - prioritizing both reinvestment and returns to shareholders.鈥�

鈥淲e remain on track to deliver our 2025 commitments we outlined earlier this year, even as the operating environment has become more challenging. While we expect growth to moderate in the second half, we are confident in our ability to deliver profitable growth for the full year. At the same time, we are committed to driving long-term value creation for our shareholders through disciplined execution, strategic investment, and continued productivity.鈥�

Second Quarter 2025 Consolidated Financial Results

• Reported net sales for the second quarter were $2.76 billion, a decrease of 4% versus the prior-year period. On a comparable basis², currency neutral sales¹ increased 3% versus the prior-year period led by broad-based growth including mid-single digit performances in Taste and Health & Biosciences.
• Income before taxes on a reported basis for the second quarter was $534 million. Adjusted operating EBITDA¹ for the second quarter was $552 million. On a comparable basis², currency neutral adjusted operating EBITDA¹ improved 6% versus the prior-year period, led by volume growth, favorable net pricing and productivity.
• Reported earnings per share (EPS) for the second quarter was $2.38 per diluted share. Adjusted EPS excluding amortization¹ was $1.15 per diluted share.
• Cash flows from operations for the first six months of the year was $368 million, and free cash flow¹ defined as cash flows from operations less capital expenditures totaled $94 million. Total debt to trailing twelve months net loss at the end of the second quarter was (15.8)x. Net debt to credit adjusted EBITDA¹ at the end of the second quarter was 2.5x.

Taste Segment

• On a reported basis, second quarter sales were $631 million. On a comparable basis², currency neutral sales¹ increased 6% with broad-based growth in all regions.
• Taste adjusted operating EBITDA¹ was $125 million and adjusted operating EBITDA margin¹ was 19.8% in the second quarter. On a comparable basis², currency neutral adjusted operating EBITDA¹ increased 3% driven by volume growth and favorable net pricing.

Food Ingredients Segment

• On a reported basis, second quarter sales were $850 million. On a comparable basis², currency neutral sales¹ increased 1% led predominantly by growth in Inclusions and Emulsifiers & Texturants.
• Food Ingredients adjusted operating EBITDA¹ was $124 million and adjusted operating EBITDA margin¹ was 14.6% in the second quarter. On a comparable basis², currency neutral adjusted operating EBITDA¹ increased 21% driven by volume growth, favorable net pricing and productivity.

Health & Biosciences Segment

• On a reported basis, second quarter sales were $577 million. On a comparable basis², currency neutral sales¹ increased 4% driven by solid performances across all businesses.
• Health & Biosciences adjusted operating EBITDA¹ was $151 million and adjusted operating EBITDA margin¹ was 26.2% in the second quarter. On a comparable basis², currency neutral adjusted operating EBITDA¹ increased 3% driven by volume growth and productivity gains.

Scent Segment

• On a reported basis, second quarter sales were $603 million. On a comparable basis², currency neutral sales¹ increased 1% against a strong double-digit year ago comparable as double-digit growth in Fine Fragrance and a low single-digit performance in Consumer Fragrance was partially offset by declines in Fragrance Ingredients.
• Scent adjusted operating EBITDA¹ was $130 million and adjusted operating EBITDA margin¹ was 21.6% in the second quarter. On a comparable basis², currency neutral adjusted operating EBITDA¹ decreased 2% driven primarily by unfavorable net pricing.

Pharma Solutions Segment

• On a reported basis, second quarter sales were $103 million. On a comparable basis², currency neutral sales¹ grew 21% with Pharma Solutions being divested on May 1, 2025.
• Pharma Solutions adjusted operating EBITDA¹ was $22 million and adjusted operating EBITDA margin¹ was 21.4% in the second quarter. On a comparable basis², currency neutral adjusted operating EBITDA¹ increased 5%.

Share Repurchase Authorization

The Company announced that its Board of Directors has authorized a new share repurchase program with a total value of $500 million. The program does not have a specified term or termination date. Under the program, the Company is authorized to repurchase shares of common stock in privately negotiated transactions, and/or open market transactions, including under plans complying with Rule 10b5-1 under the Exchange Act, and in block trades, or a combination of the foregoing. The Board will review the share repurchase program periodically and may authorize adjustment of its term and size. The Company plans to fund repurchases from available cash and cash provided by operating activities.

Sale of Soy Crush, Concentrates & Lecithin Business

The Company announced that it has entered into a definitive agreement to divest its soy crush, concentrates, and lecithin business to Bunge. The transaction鈥攅xpected to close by year-end 2025鈥攊ncludes operations that generated approximately $240 million in revenue in 2024 and employs around 250 people globally. The sale aligns with IFF鈥檚 strategy to strengthen its portfolio and supports the ongoing evaluation of strategic alternatives for its Food Ingredients segment, with a focus on maximizing shareholder value. Financial terms of the deal have not been disclosed.

Financial Guidance

The Company continues to expect full year 2025 sales to be in the range of $10.6 billion to $10.9 billion and full year 2025 adjusted operating EBITDA to be in the range of $2 billion to $2.15 billion.

The Company is reiterating its full year 2025 guidance outlined earlier this year, maintaining its outlook for 1% to 4% comparable currency neutral sales growth and 5% to 10% growth in comparable currency neutral adjusted operating EBITDA, despite more challenging market conditions expected in the second half of the year.

Based on recent market foreign exchange rates, the Company now expects that foreign exchange will have an approximately 1% (versus 2% previously) adverse impact to sales growth and an approximately 3% adverse impact to adjusted operating EBITDA growth in 2025.

Full year guidance includes four months of Pharma Solutions results as the divestiture closed on May 1, 2025. This results in an approximately 7% adverse impact to sales growth and an approximately 8% adverse impact to adjusted operating EBITDA growth in 2025.

The Company cannot reconcile its expected adjusted operating EBITDA without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include but are not limited to divestiture and integration costs, gains (losses) on business disposals, and regulatory costs.

Audio Webcast

A live webcast to discuss the Company鈥檚 second quarter 2025 financial results will be held on August 6, 2025, at 9:00 a.m. ET. The webcast and accompanying slide presentation may be accessed on the Company鈥檚 IR website at . For those unable to listen to the live webcast, a recorded version will be made available on the Company鈥檚 website approximately one hour after the event and will remain available on IFF鈥檚 website for one year.

Cautionary Statement Under The Private Securities Litigation Reform Act of 1995

Statements in this press release, which are not historical facts or information, are 鈥渇orward-looking statements鈥� within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management鈥檚 current assumptions, estimates and expectations including those concerning expected cash flow and availability of capital resources to fund our operations and meet our debt service requirements; our ability to execute on our strategic and financial transformation, including the progress and success of our portfolio optimization strategy (including the sale process for our Pharma Solutions business), through non-core business divestitures and acquisitions, and expectations regarding the implementation of our refreshed growth-focused strategy and expectations around our business divestitures; our ability to continue to generate value for, and return cash to, our shareholders; expectations of the impact of inflationary pressures and the pricing actions to offset exposure to such impacts; expectations regarding the impact of government actions including tariffs; the impact of high input costs, including commodities, raw materials, transportation and energy; the expected impact of global supply chain challenges; our ability to enhance our innovation efforts, drive cost efficiencies and execute on specific consumer trends and demands; the growth potential of the markets in which we operate, including the emerging markets; expectations regarding sales and profit for the fiscal year 2025, including the impact of foreign exchange, pricing actions, raw materials, energy, and sourcing, logistics and manufacturing costs; the impact of global economic uncertainty and recessionary pressures on demand for consumer products; the success of our integration efforts, following acquisitions, including the acquisition of Frutarom and the N&B Transaction, and ability to deliver on our synergy commitments as well as future opportunities for the combined company; our strategic investments in capacity and increasing inventory to drive improved profitability; our ability to drive cost discipline measures and the ability to recover margin to pre-inflation levels; expected capital expenditures in 2025; statements regarding the anticipated amount, duration, methods, timing, term and other aspects of our repurchase programs and any anticipated benefits or value resulting from such programs; and the expected costs and benefits of our ongoing optimization of our manufacturing operations, including the expected number of closings.

These forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-looking statements. Certain of such forward-looking information may be identified by such terms as 鈥渆xpect鈥�, 鈥渁nticipate鈥�, 鈥渂elieve鈥�, 鈥渋ntend鈥�, 鈥渙utlook鈥�, 鈥渕ay鈥�, 鈥渆stimate鈥�, 鈥渟hould鈥�, 鈥減redict鈥� and similar terms or variations thereof. Such forward-looking statements are based on a series of expectations, assumptions, estimates and projections about the Company, are not guarantees of future results or performance, and involve significant risks, uncertainties and other factors, including assumptions and projections, for all forward periods. Our actual results may differ materially from any future results expressed or implied by such forward-looking statements.

Such risks, uncertainties and other factors include, among others, the following: (1) our substantial amount of indebtedness and its impact on our liquidity, credit rating and ability to return capital to its shareholders; (2) our ability to successfully execute our strategic transformation; (3)the impact of regulatory, consumer, and economic trends for consumer products; (4) the impact of the outcomes of legal claims, disputes, regulatory investigations and litigation; (5) supply chain disruptions, geopolitical developments, climate change events, natural disasters, public health crises, tariffs and trade wars, and other events that may affect our suppliers or procurement of raw materials, and our development, manufacturing, distribution or sale of our products, and thus may impact our productivity, business and financial results; (6) inflationary trends, including in the price of our input costs, such as raw materials, transportation and energy; (7) our ability to successfully manage our working capital and inventory balances; (8) our ability to attract and retain key employees, and manage turnover of top executives; (9) our ability to successfully market to our expanded and diverse customer base; (10) our ability to effectively compete in our market and develop and introduce new products that meet customers鈥� needs; (11) changes in demand from large multi-national customers due to increased competition and our ability to maintain 鈥渃ore list鈥� status with customers; (12) our ability to successfully develop innovative and cost-effective products that allow customers to achieve their own profitability expectations; (13) the impact of a significant data breach or other disruption in our information technology systems; (14) our ability to benefit from our investments and expansion in emerging markets; (15) the impact of currency fluctuations or devaluations in the principal foreign markets in which we operate; (16) economic, regulatory and political risks associated with our international operations; (17) our ability to declare and pay dividends which is subject to certain considerations; (18) our ability to react in a timely and cost-effective manner to changes in consumer preferences and demands, including increased awareness of health and wellness; (19) our ability to meet increasing customer, consumer, shareholder and regulatory focus on sustainability; (20) any impairment on our tangible or intangible long-lived assets; (21) our ability to enter into or close strategic transactions or divestments, or successfully establish and manage acquisitions, collaborations, joint ventures or partnerships; (22) changes in market conditions or governmental regulations relating to our pension and postretirement obligations; (23) our ability to comply with, and the costs associated with compliance with, regulatory requirements and industry standards, including regarding product safety, quality, efficacy and environment impact; (24) defects, quality issues (including product recalls), inadequate disclosure or misuse with respect to the products and capabilities; (25) our ability to comply with, and the costs associated with compliance with, U.S. and foreign environmental protection laws; (26) the impact of our or our counterparties鈥� failure to comply with the U.S. Foreign Corrupt Practices Act, similar U.S. or foreign anti-bribery and anti-corruption laws and regulations, applicable sanctions or competition laws and regulations in the jurisdictions in which we operate or ethical business practices and related laws and regulations; (27) our ability to protect our intellectual property rights; (28) changes in business and operations related to the adoption of artificial intelligence; (29) the impact of changes in federal, state, local and international tax legislation or policies and adverse results of tax audits, assessments, or disputes; (30) the impact of any tax liability resulting from the N&B Transaction; and (31) our ability to comply with data protection laws in the U.S. and abroad.

The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. In addition, you should consult other disclosures made by the Company (such as in our other filings with the SEC or in company press releases) for other factors that may cause actual results to differ materially from those projected by the Company. Please refer to Part I. Item 1A., Risk Factors, of the Company鈥檚 Annual Report on Form 10-K filed with the SEC on February 28, 2025 for additional information regarding factors that could affect our results of operations, financial condition and liquidity.

We intend our forward-looking statements to speak only as of the time of such statements and do not undertake or plan to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this press release or included in our other periodic reports filed with the SEC could materially and adversely impact our operations and our future financial results. Any public statements or disclosures made by us following this press release that modify or impact any of the forward-looking statements contained in or accompanying this press release will be deemed to modify or supersede such outlook or other forward-looking statements in or accompanying this press release.

Use of Non-GAAP Financial Measures

We provide in this press release non-GAAP financial measures, including: (i) comparable currency neutral sales; (ii) adjusted operating EBITDA and comparable adjusted operating EBITDA; (iii) adjusted operating EBITDA margin; (iv) adjusted EPS ex amortization; (v) free cash flow; and (vi) net debt to credit adjusted EBITDA.

Our non-GAAP financial measures are defined below.

Currency neutral metrics eliminate the effects that result from translating non-U.S. currencies to U.S. dollars. We calculate currency neutral numbers by translating current year invoiced sale amounts at the exchange rates used for the corresponding prior year period. We use currency neutral results in our analysis of subsidiary or segment performance. We also use currency neutral numbers when analyzing our performance against our competitors.

Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization, interest expense, other expense, net, and certain non-recurring or unusual items that are not part of recurring operations such as, restructuring and other charges, impairment of goodwill, losses (gains) on business disposals, loss on assets classified as held for sale, divestiture and integration costs, strategic initiatives costs, regulatory costs, gain on debt extinguishment, and other items.

Adjusted EPS ex Amortization excludes the impact of non-operational items including, restructuring and other charges, impairment of goodwill, divestiture and integration costs, (losses) gains on business disposals, loss on assets classified as held for sale, strategic initiatives costs, regulatory costs, gain on debt extinguishment, and other items that are not a part of recurring operations.

Free Cash Flow is operating cash flow (i.e. cash flow from operations) less capital expenditures.

Net debt to credit adjusted EBITDA is the leverage ratio used in our credit agreements and defined as net debt (which is debt for borrowed money less cash and cash equivalents) divided by the trailing 12-month credit adjusted EBITDA. Credit adjusted EBITDA is defined as income (loss) before interest expense, income taxes, depreciation and amortization, specified items and non-cash items.

Comparable results for the second quarter exclude the impact of divestitures.

These non-GAAP measures are intended to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. In discussing our historical and expected future results and financial condition, we believe it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, as well as the impact of exchange rate fluctuations. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of the Company鈥檚 results under GAAP and may not be comparable to other companies鈥� calculation of such metrics.

The Company cannot reconcile its expected adjusted operating EBITDA under "Financial Guidance" without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include but are not limited to divestiture and integration costs, gains (losses) on business disposals, and regulatory costs.

Welcome to IFF

At IFF (NYSE: IFF), an industry leader in food, beverage, scent, health and biosciences, science and creativity meet to create essential solutions for a better world 鈥� from global icons to unexpected innovations and experiences. With the beauty of art and the precision of science, we are an international collective of thinkers who partners with customers to bring scents, tastes, experiences, ingredients and solutions for products the world craves. Together, we will do more good for people and planet. Learn more at , Twitter, Facebook, Instagram, and LinkedIn.