Reportable Segment Performance
| Three Months Ended June 30, 2025 |
|---|
| Taste | Food Ingredients | Health & Biosciences | Scent | Pharma Solutions | Total |
|---|
| Net Sales | $631 | $850 | $577 | $603 | $103 | $2,764 |
|---|
| Cost of Sales | (377) | (642) | (311) | (336) | (68) | |
|---|
| Research & development expenses | (47) | (14) | (55) | (62) | (3) | |
|---|
| Selling & administrative expenses | (98) | (104) | (91) | (92) | (10) | |
|---|
| Depreciation expense add-back (a) | 16 | 34 | 31 | 17 | — | |
|---|
| Adjusted Operating EBITDA | $125 | $124 | $151 | $130 | $22 | $552 |
|---|
| Reconciliation of Adjusted Operating EBITDA: |
|---|
| Total Adjusted Operating EBITDA | $552 |
|---|
| Depreciation & Amortization | (242) |
|---|
| Interest Expense | (61) |
|---|
| Other Expense, net | (10) |
|---|
| Restructuring and Other Charges (b) | (21) |
|---|
| (Losses) Gains on Business Disposals (d) | (81) |
|---|
| Divestiture and Integration Costs (f) | (26) |
|---|
| Strategic Initiative Costs (g) | (6) |
|---|
| Regulatory Costs (h) | (53) |
|---|
| Gain on Debt Extinguishment (i) | 488 |
|---|
| Entity Realignment Costs (j) | (4) |
|---|
| Other (k) | (2) |
|---|
| Income (Loss) Before Taxes | $534 |
|---|
| Segment Adjusted Operating EBITDA Margin |
|---|
| Taste | 19.8% |
|---|
| Food Ingredients | 14.6% |
|---|
| Health & Biosciences | 26.2% |
|---|
| Scent | 21.6% |
|---|
| Pharma Solutions | 21.4% |
|---|
| Consolidated | 20.0% |
|---|
| Three Months Ended June 30, 2024 |
|---|
| Taste | Food Ingredients | Health & Biosciences | Scent | Pharma Solutions | Total |
|---|
| Net Sales | $610 | $847 | $556 | $603 | $273 | $2,889 |
|---|
| Cost of Sales | (357) | (655) | (294) | (328) | (187) | |
|---|
| Research & development expenses | (40) | (21) | (50) | (55) | (7) | |
|---|
| Selling & administrative expenses | (100) | (94) | (89) | (93) | (26) | |
|---|
| Depreciation expense add-back (a) | 14 | 32 | 28 | 16 | 5 | |
|---|
| Adjusted Operating EBITDA | $127 | $109 | $151 | $143 | $58 | $588 |
|---|
| Reconciliation of Adjusted Operating EBITDA: |
|---|
| Total Adjusted Operating EBITDA | $588 |
|---|
| Depreciation & Amortization | (246) |
|---|
| Interest Expense | (79) |
|---|
| Other Expense, net | (15) |
|---|
| Restructuring and Other Charges (b) | (2) |
|---|
| Impairment of Goodwill (c) | (64) |
|---|
| Losses (Gains) on Business Disposals (d) | 368 |
|---|
| Loss on Assets Classified as Held for Sale (e) | (282) |
|---|
| Divestiture and Integration Costs (f) | (59) |
|---|
| Strategic Initiative Costs (g) | (12) |
|---|
| Regulatory Costs (h) | (19) |
|---|
| Entity Realignment Costs (j) | (2) |
|---|
| Other (k) | 7 |
|---|
| Income (Loss) Before Taxes | $183 |
|---|
| Segment Adjusted Operating EBITDA Margin |
|---|
| Taste | 20.8% |
|---|
| Food Ingredients | 12.9% |
|---|
| Health & Biosciences | 27.2% |
|---|
| Scent | 23.7% |
|---|
| Pharma Solutions | 21.2% |
|---|
| Consolidated | 20.4% |
|---|
| Six Months Ended June 30, 2025 |
|---|
| Taste | Food Ingredients | Health & Biosciences | Scent | Pharma Solutions | Total |
|---|
| Net Sales | $1,258 | $1,646 | $1,117 | $1,217 | $369 | $5,607 |
|---|
| Cost of Sales | (754) | (1,251) | (609) | (680) | (248) | |
|---|
| Research & development expenses | (87) | (26) | (107) | (117) | (8) | |
|---|
| Selling & administrative expenses | (192) | (196) | (172) | (178) | (42) | |
|---|
| Depreciation expense add-back (a) | 31 | 62 | 60 | 32 | 5 | |
|---|
| Adjusted Operating EBITDA | $256 | $235 | $289 | $274 | $76 | $1,130 |
|---|
| Reconciliation of Adjusted Operating EBITDA: |
|---|
| Total Adjusted Operating EBITDA | $1,130 |
|---|
| Depreciation & Amortization | (478) |
|---|
| Interest Expense | (132) |
|---|
| Other Expense, net | (30) |
|---|
| Restructuring and Other Charges (b) | (38) |
|---|
| Impairment of Goodwill (c) | (1,153) |
|---|
| Losses (Gains) on Business Disposals (d) | (81) |
|---|
| Divestiture and Integration Costs (f) | (77) |
|---|
| Strategic Initiative Costs (g) | (14) |
|---|
| Regulatory Costs (h) | (64) |
|---|
| Gain on Debt Extinguishment (i) | 488 |
|---|
| Entity Realignment Costs (j) | (5) |
|---|
| Other (k) | (6) |
|---|
| (Loss) Income Before Taxes | $(460) |
|---|
| Segment Adjusted Operating EBITDA Margin |
|---|
| Taste | 20.3% |
|---|
| Food Ingredients | 14.3% |
|---|
| Health & Biosciences | 25.9% |
|---|
| Scent | 22.5% |
|---|
| Pharma Solutions | 20.6% |
|---|
| Consolidated | 20.2% |
|---|
| Six Months Ended June 30, 2024 |
|---|
| Taste | Food Ingredients | Health & Biosciences | Scent | Pharma Solutions | Total |
|---|
| Net Sales | $1,229 | $1,703 | $1,085 | $1,248 | $523 | $5,788 |
|---|
| Cost of Sales | (741) | (1,328) | (580) | (678) | (368) | |
|---|
| Research & development expenses | (79) | (41) | (96) | (110) | (13) | |
|---|
| Selling & administrative expenses | (196) | (184) | (177) | (181) | (54) | |
|---|
| Depreciation expense add-back (a) | 31 | 67 | 57 | 32 | 17 | |
|---|
| Adjusted Operating EBITDA | $244 | $217 | $289 | $311 | $105 | $1,166 |
|---|
| Reconciliation of Adjusted Operating EBITDA: |
|---|
| Total Adjusted Operating EBITDA | $1,166 |
|---|
| Depreciation & Amortization | (524) |
|---|
| Interest Expense | (162) |
|---|
| Other Expense, net | (16) |
|---|
| Restructuring and Other Charges (b) | (5) |
|---|
| Impairment of Goodwill (c) | (64) |
|---|
| Losses (Gains) on Business Disposals (d) | 368 |
|---|
| Loss on Assets Classified as Held for Sale (e) | (282) |
|---|
| Divestiture and Integration Costs (f) | (117) |
|---|
| Strategic Initiative Costs (g) | (16) |
|---|
| Regulatory Costs (h) | (54) |
|---|
| Entity Realignment Costs (j) | (3) |
|---|
| Other (k) | 7 |
|---|
| Income (Loss) Before Taxes | $298 |
|---|
| Segment Adjusted Operating EBITDA Margin |
|---|
| Taste | 19.9% |
|---|
| Food Ingredients | 12.7% |
|---|
| Health & Biosciences | 26.6% |
|---|
| Scent | 24.9% |
|---|
| Pharma Solutions | 20.1% |
|---|
| Consolidated | 20.1% |
|---|
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
| Reconciliation of Gross Profit |
|---|
| Second Quarter |
|---|
| (DOLLARS IN MILLIONS) | 2025 | 2024 |
|---|
| Reported (GAAP) | $1,030 | $1,068 |
|---|
| Adjusted (Non-GAAP) | $1,030 | $1,068 |
|---|
| Reconciliation of Selling and Administrative Expenses |
|---|
| Second Quarter |
|---|
| (DOLLARS IN MILLIONS) | 2025 | 2024 |
|---|
| Reported (GAAP) | $483 | $493 |
|---|
| Divestiture and Integration Costs (f) | (26) | (59) |
|---|
| Strategic Initiatives Costs (g) | (6) | (12) |
|---|
| Regulatory Costs (h) | (53) | (19) |
|---|
| Entity Realignment Costs (j) | (3) | — |
|---|
| Other (k) | — | (2) |
|---|
| Adjusted (Non-GAAP) | $395 | $401 |
|---|
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
| Reconciliation of Net Income (Loss) and EPS |
|---|
| Second Quarter |
|---|
| 2025 · 2024 |
|---|
| (DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | Income before taxes | (Benefit) Provision for income taxes (l) | Net income attributable to IFF (m) | Diluted EPS | Income before taxes | (Benefit) Provision for income taxes (l) | Net income attributable to IFF (m) | Diluted EPS (o) |
|---|
| Reported (GAAP) | $534 | $(78) | $612 | $2.38 | $183 | $11 | $170 | $0.66 |
|---|
| Restructuring and Other Charges (b) | 21 | 5 | 16 | 0.06 | 2 | — | 2 | 0.01 |
|---|
| Impairment of Goodwill (c) | — | — | — | — | 64 | — | 64 | 0.25 |
|---|
| (Gains) Losses on Business Disposals (d) | 81 | (154) | 235 | 0.92 | (368) | (23) | (345) | (1.35) |
|---|
| Loss on Assets Classified as Held for Sale (e) | — | — | — | — | 282 | 58 | 224 | 0.87 |
|---|
| Divestiture and Integration Costs (f) | 26 | 22 | 4 | 0.02 | 56 | 10 | 46 | 0.18 |
|---|
| Strategic Initiatives Costs (g) | 6 | 1 | 5 | 0.02 | 12 | 3 | 9 | 0.04 |
|---|
| Regulatory Costs (h) | 53 | 12 | 41 | 0.16 | 19 | 4 | 15 | 0.06 |
|---|
| Gain on Debt Extinguishment (i) | (488) | (116) | (372) | (1.45) | — | — | — | — |
|---|
| Entity Realignment Costs (j) | 3 | 361 | (358) | (1.39) | 2 | — | 2 | — |
|---|
| Other (k) | 2 | — | 2 | — | (7) | (3) | (4) | (0.02) |
|---|
| Adjusted (Non-GAAP) | $238 | $53 | $185 | $0.72 | $245 | $60 | $183 | $0.71 |
|---|
| Reconciliation of Adjusted (Non-GAAP) EPS ex. Amortization |
|---|
| Second Quarter |
|---|
| (DOLLARS AND SHARE AMOUNTS IN MILLIONS) | 2025 | 2024 |
|---|
| Numerator |
|---|
| Adjusted (Non-GAAP) Net Income | $185 | $183 |
|---|
| Amortization of Acquisition related Intangible Assets | 145 | 153 |
|---|
| Tax impact on Amortization of Acquisition related Intangible Assets (l) | 35 | 38 |
|---|
| Amortization of Acquisition related Intangible Assets, net of tax (n) | 110 | 115 |
|---|
| Adjusted (Non-GAAP) Net Income ex. Amortization | $295 | $298 |
|---|
| Denominator |
|---|
| Weighted average shares assuming dilution (diluted) | 257 | 256 |
|---|
| Adjusted (Non-GAAP) EPS ex. Amortization | $1.15 | $1.16 |
|---|
| (a) | There is depreciation recorded within cost of sales, research & development expenses, and selling & administrative expenses, which is then added back to calculate segment Adjusted Operating EBITDA. This reflects how the CODM reviews Segment results. |
|---|
| (b) | For 2025, represents costs related to severance as part of the IFF Productivity Program. For 2024, represents costs related to lease impairment and severance as part of the Company’s restructuring efforts. |
|---|
| (c) | For 2024, represents the impairment of goodwill related to the Pharma Solutions disposal group. |
|---|
| (d) | For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized as part of the sale of the Nitrocellulose business. For 2024, primarily represents gains recognized as part of the sale of the Cosmetic Ingredients business. |
|---|
| (e) | For 2024, represents the loss recognized on assets classified as held for sale of the Pharma Solutions disposal group. |
|---|
| (f) | For 2025 and 2024, primarily represents costs related to the Company’s completed divestitures. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts.For the three months ended June 30, 2025, there were approximately $26 million of divestiture costs. For the three months ended June 30, 2024, business divestiture and integration costs were approximately $53 million and $3 million, respectively. |
|---|
| (g) | For 2025 and 2024, represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services Centers, primarily consulting fees. |
|---|
| (h) | Represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses. |
|---|
| (i) | For 2025, represents the gain recognized on the extinguishment of debt in connection with the completion of tender offers. |
|---|
| (j) | The Company implemented a phased restructuring initiative aimed at optimizing its legal entity framework. A one-time tax benefit was achieved as part of this restructuring which is partially offset by the execution costs to implement. |
|---|
| (k) | For 2025, primarily represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company. For 2024, represents gains (losses) from sale of assets and executive employee separation costs. |
|---|
| (l) | The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. The tax benefit for amortization is calculated in a similar manner as the tax effects of the non-GAAP adjustments. |
|---|
| (m) | For the three months ended June 30, 2024, reported and adjusted net income are each decreased by income attributable to non-controlling interest of $2 million. |
|---|
| (n) | Represents all amortization of intangible assets acquired in connection with acquisitions, net of tax. |
|---|
| (o) | The sum of these items does not foot due to rounding. |
|---|
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
| Reconciliation of Gross Profit |
|---|
| Second Quarter Year-to-Date |
|---|
| (DOLLARS IN MILLIONS) | 2025 | 2024 |
|---|
| Reported (GAAP) | $2,065 | $2,092 |
|---|
| Divestiture and Integration Costs (f) | — | 1 |
|---|
| Adjusted (Non-GAAP) | $2,065 | $2,093 |
|---|
| Reconciliation of Selling and Administrative Expenses |
|---|
| Second Quarter Year-to-Date |
|---|
| (DOLLARS IN MILLIONS) | 2025 | 2024 |
|---|
| Reported (GAAP) | $944 | $983 |
|---|
| Divestiture and Integration Costs (f) | (77) | (116) |
|---|
| Strategic Initiatives Costs (g) | (14) | (16) |
|---|
| Regulatory Costs (h) | (64) | (54) |
|---|
| Entity Realignment Costs | (4) | — |
|---|
| Other (k) | (5) | (5) |
|---|
| Adjusted (Non-GAAP) | $780 | $792 |
|---|
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
| Reconciliation of Net Income (Loss) and EPS |
|---|
| Second Quarter Year-to-Date |
|---|
| 2025 · 2024 |
|---|
| (DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | Income before taxes | Provision for income taxes (l) | Net income attributable to IFF (m) | Diluted EPS (o) | Income before taxes | Provision for income taxes (l) | Net income attributable to IFF (m) | Diluted EPS |
|---|
| Reported (GAAP) | $(460) | $(55) | $(406) | $(1.59) | $298 | $65 | $230 | $0.90 |
|---|
| Restructuring and Other Charges (b) | 38 | 9 | 29 | 0.11 | 5 | 1 | 4 | 0.02 |
|---|
| Impairment of Goodwill (c) | 1,153 | 7 | 1,146 | 4.48 | 64 | — | 64 | 0.25 |
|---|
| (Gains) Losses on Business Disposals (d) | 81 | (154) | 235 | 0.92 | (368) | (23) | (345) | (1.35) |
|---|
| Loss on Assets Classified as Held for Sale (e) | — | — | — | — | 282 | 58 | 224 | 0.87 |
|---|
| Divestiture and Integration Costs (f) | 77 | 34 | 43 | 0.17 | 114 | 3 | 111 | 0.44 |
|---|
| Strategic Initiatives Costs (g) | 14 | 3 | 11 | 0.04 | 16 | 4 | 12 | 0.05 |
|---|
| Regulatory Costs (h) | 64 | 15 | 49 | 0.19 | 54 | 8 | 46 | 0.18 |
|---|
| Gain on Debt Extinguishment (i) | (488) | (116) | (372) | (1.45) | — | — | — | — |
|---|
| Entity Realignment Costs (j) | 4 | 361 | (357) | (1.39) | 3 | — | 3 | — |
|---|
| Other (k) | 6 | 1 | 5 | 0.02 | (7) | (3) | (4) | (0.02) |
|---|
| Adjusted (Non-GAAP) | $489 | $105 | $383 | $1.49 | $461 | $113 | $345 | $1.34 |
|---|
| Reconciliation of Adjusted (Non-GAAP) EPS ex. Amortization |
|---|
| Second Quarter Year-to-Date |
|---|
| (DOLLARS AND SHARE AMOUNTS IN MILLIONS) | 2025 | 2024 |
|---|
| Numerator |
|---|
| Adjusted (Non-GAAP) Net Income | $383 | $345 |
|---|
| Amortization of Acquisition related Intangible Assets | 288 | 321 |
|---|
| Tax impact on Amortization of Acquisition related Intangible Assets (l) | 70 | 79 |
|---|
| Amortization of Acquisition related Intangible Assets, net of tax (n) | 218 | 242 |
|---|
| Adjusted (Non-GAAP) Net Income ex. Amortization | $601 | $587 |
|---|
| Denominator |
|---|
| Weighted average shares assuming dilution (diluted) | 256 | 256 |
|---|
| Adjusted (Non-GAAP) EPS ex. Amortization | $2.35 | $2.29 |
|---|
| (a) | There is depreciation recorded within cost of sales, research & development expenses, and selling & administrative expenses, which is then added back to calculate segment Adjusted Operating EBITDA. This reflects how the CODM reviews Segment results. |
|---|
| (b) | For 2025, represents costs related to severance as part of the IFF Productivity Program. For 2024, represents costs related to lease impairment and severance as part of the Company’s restructuring efforts. |
|---|
| (c) | For 2024, represents the impairment of goodwill related to the Pharma Solutions disposal group. |
|---|
| (d) | For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized as part of the sale of the Nitrocellulose business. For 2024, primarily represents gains recognized as part of the sale of the Cosmetic Ingredients business. |
|---|
| (e) | For 2024, represents the loss recognized on assets classified as held for sale of the Pharma Solutions disposal group. |
|---|
| (f) | For 2025 and 2024, primarily represents costs related to the Company’s completed divestitures. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts.For the six months ended June 30, 2025, there were approximately $77 million of divestiture costs. For the six months ended June, 2024, business divestiture and integration costs were approximately $109 million and $5 million, respectively. |
|---|
| (g) | For 2025 and 2024, represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services Centers, primarily consulting fees. |
|---|
| (h) | Represents costs primarily related to legal fees and provisions incurred related to the ongoing investigations of the fragrance businesses including a provision for the anticipated settlement of the related US class action lawsuits. |
|---|
| (i) | For 2025, represents the gain recognized on the extinguishment of debt in connection with the completion of tender offers. |
|---|
| (j) | The Company implemented a phased restructuring initiative aimed at optimizing its legal entity framework. A one-time tax benefit was achieved as part of this restructuring which is partially offset by the execution costs to implement. |
|---|
| (k) | For 2025, primarily represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company. For 2024, represents gains (losses) from sale of assets and executive employee separation costs. |
|---|
| (l) | The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. The tax benefit for amortization is calculated in a similar manner as the tax effects of the non-GAAP adjustments. |
|---|
| (m) | For the six months ended June 30, 2025, reported and adjusted net income are each decreased by income attributable to non-controlling interest of $1 million. For the six months ended June 30, 2024, reported and adjusted net income are each decreased by income attributable to non-controlling interest of $3 million. |
|---|
| (n) | Represents all amortization of intangible assets acquired in connection with acquisitions, net of tax. |
|---|
| (o) | The sum of these items does not foot due to rounding. |
|---|
