IFF Delivers Solid Third Quarter 2025 Results; Reaffirms Full-Year Outlook
International Flavors & Fragrances Inc. (NYSE: IFF) today reported financial results for the third quarter ended September 30, 2025, highlighting steady performance in its core Scent and Taste segments, continued productivity gains, and reaffirmation of its full-year financial guidance.
Management Commentary
“Our third quarter results demonstrate continued execution in a tough operating environment,” said Erik Fyrwald, Chief Executive Officer of IFF. “We saw strong sales momentum in Scent and Taste, supported by new business wins, which helped offset short-term pressures in Health & Biosciences and a reduction in Food Ingredients as we focus on improving margins.”
Fyrwald continued, “Profitability improved at a high-single-digit rate year over year, with margin expansion driven largely by productivity initiatives. By maintaining a disciplined focus on operational excellence, we’re driving sustained profitability while investing in IFF’s long-term success.”
He added, “Even amid macroeconomic headwinds, we’re doing exactly what we set out to do—delivering consistent performance, maintaining our financial guidance, and advancing our strategic priorities. Our ongoing portfolio optimization and focus on high-value segments will unlock additional shareholder value as we move forward.”
Third Quarter 2025 Consolidated Results
IFF reported net sales of $2.69 billion, a decline of 8% year over year on a reported basis. However, on a comparable currency-neutral basis, sales were flat against a strong prior-year quarter that grew 9%. Strength in Scent (mid-single-digit growth) and Taste (low-single-digit growth) helped balance declines elsewhere. Over a two-year average, comparable currency-neutral sales increased in the mid-single digits.
Income before taxes on a reported basis totaled $56 million for the quarter. Adjusted operating EBITDA was $519 million, representing a 7% improvement on a comparable currency-neutral basis, driven by productivity gains and favorable pricing actions.
Reported diluted earnings per share (EPS) were $0.16, while adjusted EPS excluding amortization reached $1.05.
Cash flow from operations for the first nine months of 2025 totaled $532 million, and free cash flow (operating cash flow less capital expenditures) was $126 million.
At quarter-end, total debt to trailing twelve-month net loss was (13.5)x, and net debt to credit-adjusted EBITDA stood at 2.5x, reflecting solid balance sheet discipline.
Segment Performance
Taste Segment
Reported third-quarter sales were $635 million. On a comparable currency-neutral basis, sales increased 2% against a very strong double-digit comparable period in 2024. Growth was led by Latin America and the EAME (Europe, Africa, Middle East) regions, partially offset by softness in North America.
Adjusted operating EBITDA for Taste was $128 million, with a 20.2% margin. On a comparable currency-neutral basis, adjusted EBITDA rose 2%, reflecting favorable pricing and disciplined cost management.
Health & Biosciences Segment
Sales for the quarter were $577 million on a reported basis, and flat on a comparable currency-neutral basis against a strong prior-year period. Growth in Food Biosciences, Home & Personal Care, and Animal Nutrition was offset by weakness in the Health category, particularly in North America.
Adjusted operating EBITDA totaled $150 million, with a 26.0% margin. On a comparable basis, adjusted EBITDA increased 3%, driven primarily by productivity improvements.
Scent Segment
Third-quarter sales reached $652 million, up 5% on a comparable currency-neutral basis against a strong double-digit prior-year comparison. Fine Fragrance continued its strong performance, up 20% year over year, while Consumer Fragrances grew at a low-single-digit rate. Fragrance Ingredients declined slightly, as strength in Specialties was offset by weaker Commodities.
Adjusted operating EBITDA for Scent was $135 million, with a 20.7% margin, increasing 6% on a comparable currency-neutral basis, supported by volume growth and mix improvement.
Food Ingredients Segment
Sales in the quarter were $830 million, down 3% on a comparable currency-neutral basis. Growth in Inclusions was offset by softness in Protein Solutions.
Adjusted operating EBITDA reached $106 million, with a 12.8% margin. On a comparable basis, adjusted EBITDA grew 24%, reflecting strong productivity gains and ongoing margin enhancement initiatives.
Financial Guidance
Despite ongoing macroeconomic challenges, IFF reaffirmed its full-year 2025 guidance originally shared earlier in the year. The company continues to expect:
- Full-year 2025 sales: between $10.6 billion and $10.9 billion
- Adjusted operating EBITDA: between $2.0 billion and $2.15 billion
Based on year-to-date results and expected fourth-quarter performance, IFF continues to anticipate 1% to 4% comparable currency-neutral sales growth, likely at the lower end of the range, and 5% to 10% growth in comparable currency-neutral adjusted operating EBITDA, likely near the midpoint of the range.
The company expects foreign exchange to negatively impact 2025 sales growth by ~1% and adjusted operating EBITDA growth by ~3%, based on current market exchange rates.
Additionally, 2025 guidance reflects only four months of Pharma Solutions results, following the divestiture completed on May 1, 2025. This is expected to reduce full-year sales growth by approximately 7% and adjusted operating EBITDA growth by 8%.
Webcast Information
IFF will host a live webcast to discuss its third-quarter results on November 5, 2025, at 9:00 a.m. ET. The webcast and accompanying presentation will be accessible via the Company’s Investor Relations website at ir.iff.com.
A recorded replay will be available approximately one hour after the live event and remain accessible for one year.
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including expectations regarding future financial performance, cash flow, strategy execution, portfolio optimization, and other matters. These statements are based on current assumptions, estimates, and expectations of management and are not guarantees of future performance.
Forward-looking statements involve a range of risks and uncertainties, many beyond the Company’s control, that could cause actual results to differ materially. Key factors include, but are not limited to: macroeconomic volatility, inflationary cost pressures, raw material availability, supply chain challenges, regulatory and geopolitical developments, changes in customer demand, and execution risks associated with strategic initiatives or divestitures.
Additional risk factors are detailed in IFF’s Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission on February 28, 2025, under “Item 1A. Risk Factors.” IFF undertakes no obligation to update or revise forward-looking statements except as required by law.
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