INTERNATIONAL FLAVORS & FRAGRANCES INC
For the period ended Mar 31, 2026. Filed May 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
IFF$82.62-4.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0000051253-25-000049
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0000051253-26-000017
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 209 previous paragraphs and 131 current paragraphs.
61 unchanged; 46 reworded; 24 added; 85 removed; 17 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
(1)Impact of business divestitures in 2025 includes results of the Rene Laurent business (divested December 1, 2025), the Pharma Solutions disposal group and Nitrocellulose business (divested May 1, 2025 and May 9, 2025, respectively), and the SCL disposal group (divested March 2, 2026).
Current report
Food Ingredients sales in 2026 increased $43 million, or 5% on a reported basis, to $839 million compared to $796 million in the prior year period. On a comparable currency neutral basis, Food Ingredients sales increased 3% in 2026 compared to the prior year period primarily driven by volume increases across nearly all business entities. Exchange rate variations had a favorable impact of 4%. Comparable portfolio results exclude the impact of the divestiture of the SCL disposal group with an impact of approximately$17 million.
Current report
Cost of sales decreased $85 million to $1.723 billion (62.9% of sales) in the first quarter of 2026 compared to $1.808 billion (63.6% of sales) in thefirst quarter of 2025. The decrease in cost of goods sold was primarily driven by divestitures, with an impact of approximately $202 million, offset in part by volume increases in sales.
Current report
Amortization expenses increased to$146 million in the first quarter of 2026 compared to $143 million in the first quarter of 2025. The increase in amortization expense was primarily driven by the impact of foreign currency exchange rates. See Note 11 for additional information.
Current report
Losses on Business Disposals
Current report
Losses on business disposals were $7 million in the first quarter of 2026. The loss in 2026 was due to the SCL disposal group business divestiture. See Note 3 for additional information.
Current report
Segment Adjusted Operating EBITDA Results
Current report
Taste Segment Adjusted Operating EBITDA increased $22 million, or 17% on a reported basis, to $153 million in the first quarter of 2026 (23.3% of segment sales) from $131 million (20.9% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Taste Segment Adjusted Operating EBITDA increased 18% in 2026 compared to the prior year period led primarily by volume increases and productivity gains. Comparable portfolio results exclude the impact of the divestiture of the Rene Laurent business with an impact of approximately $3 million.
Current report
Food Ingredients Segment Adjusted Operating EBITDA increased $3 million, or 3% on a reported basis, to $114 million in the first quarter of 2026 (13.6% of segment sales) from $111 million (13.9% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Food Ingredients Adjusted Operating EBITDA increased 12% in 2026 comp ared to the prior year primarily driven by volume growth and productivity gains.
Current report
Health & Biosciences Segment Adjusted Operating EBITDA increased $15 million, or 11% on a reported basis, to$153 million in the first quarter of 2026 (25.7% of segment sales) from $138 million (25.6% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Health & Biosciences Adjusted Operating EBITDA increased 7% in 2026. The performance was primarily driven by volume growth and productivity gains.
Current report
Scent Segment Adjusted Operating EBITDA increased $4 million, or 3% on a reported basis, to $148 million in the first quarter of 2026 (22.7% of segment sales) from $144 million (23.5% of segment sales) in the comparable 2025 period. On a comparable currency neutral basis, Scent Segment Adjusted Operating EBITDA decreased 2% in 2026 compared to the prior year period as unfavorable net pricing more than offset volume increases in the Fragrance Compounds business unit and productivity gains.
Current report
Cash Flows Provided By (Used in) Investing Activities
Current report
Cash Flows Used In (Provided By) Financing Activities
Current report
•demand trends, competitive dynamics and customer concentration in our end markets;
Current report
•execution of our strategic transformation and other strategic transactions, divestitures, acquisitions, collaborations and joint ventures;
Current report
•working capital and inventory management;
Current report
•attraction, retention and turnover of key employees and executives; product innovation, time-to-market, product safety and quality;
Current report
•cybersecurity incidents, artificial intelligence related risks, data privacy and compliance with data protection laws;
Current report
•exposure to emerging markets, foreign currency fluctuations and international regulatory and political risks;
Current report
•capital allocation, dividend policy and potential impairments of tangible or intangible assets; our indebtedness, credit rating, liquidity, and access to capital;
Current report
•pension and postretirement obligations;
Current report
•compliance with federal, state, local and international rules and regulations, and regulatory, environmental, anti-corruption and sanctions laws and related ethical business practices;
Current report
•protection and enforcement of intellectual property;
Current report
•changes in tax laws and policies, tax audits and outcomes, including potential tax liabilities related to prior transactions; and changes in federal, state, local and international rules and regulations.
Removed paragraphs (85)
Previous report
We are a leading creator and manufacturer of products for application in food, beverage, health & biosciences, scent (and pharmaceuticals, until the recent sale of the Pharma Solutions disposal group), as well as complementary adjacent products, including natural health ingredients, all of which are used in a wide variety of consumer and end-use products. Our products are sold principally to manufacturers of dairy, meat, beverages, snacks, savory, sweet, baked goods, grain processors and other foods, personal care products, soaps and detergents, cleaning products, perfumes, dietary supplements, food protection, infant, elderly and animal nutrition, functional food, bio-fuel, pharmaceutical and oral care products. As a result, we hold global leadership positions in the Food & Beverage, Home & Personal Care and Health & Wellness markets, and across key Tastes, Textures, Scents, Nutrition, Enzymes, Cultures, Soy Proteins and Probiotics categories, among others.
Previous report
(1)Comparable portfolio results for 2024 exclude the impact of divestitures. The impact includes the results of the F&E UK business that was divested on September 1, 2024 (for September 2024), and the Pharma Solutions disposal group and Nitrocellulose business that were divested on May 1, 2025 and May 9, 2025, respectively (for July 1, 2024 to September 30, 2024).
Previous report
Food Ingredients sales in 2025 decreased $13 million, or 2% on a reported basis, to $830 million compared to $843 million in the prior year period. On a comparable currency neutral basis, Food Ingredients sales decreased 3% in 2025 compared to the prior year period, primarily driven by volume decreases in Protein Solutions, Emulsifiers & Texturants and Cellulosics & Food Protection business units. Exchange rate variations had a favorable impact.
Previous report
Cost of sales decreased $162 million to $1.711 billion (63.5% of sales) in the third quarter of 2025 compared to $1.873 billion (64.0% of sales) in the third quarter of 2024. The decrease in cost of sales was primarily driven by the change in business portfolio mix due to divestitures, with an impact of approximately $179 million and by lower input costs and manufacturing expenses, lower unfavorable manufacturing absorption compared to the prior year period, offset in part by volume increases in sales.
Previous report
Amortization expenses remained flat at $146 million in the third quarter of 2025 and 2024.
Previous report
Losses (Gains) on Business Disposals
Previous report
There were no Losses (Gains) on business disposals in the third quarter of 2025 compared to $20 million in the third quarter of 2024. The loss recognized in 2024 related to the F&E UK divestiture. See Note 3 for additional information.
Previous report
There was a $108 million loss on assets classified as held for sale in the third quarter of 2025 compared to $32 million in the third quarter of 2024. The loss in 2025 related to assets classified as held for sale for the Soy Crush, Concentrates & Lecithin business. The loss in 2024 related to assets classified as held for sale for the Pharma Solutions disposal group and the portion of the Savory Solutions business in Turkey. See Note 3 for additional information.
Previous report
Segment Adjusted Operating EBITDA Results by Business Unit
Previous report
Taste Segment Adjusted Operating EBITDA decreased $1 million, or 1% on a reported basis, to $128 million in the third quarter of 2025 (20.2% of segment sales) from $129 million (20.7% of segment sales) in the comparable 2024 period. On a comparable currency neutral basis, Taste Segment Adjusted Operating EBITDA increased 2% in 2025 compared to the prior year period, which was primarily driven by favorable net pricing. The divestiture of the F&E UK business had an impact of approximately $5 million, offset by favorable impact of exchange rate variations.
Previous report
Food Ingredients Segment Adjusted Operating EBITDA increased $15 million, or 16% on a reported basis, to $106 million in the third quarter of 2025 (12.8% of segment sales) from $91 million (10.8% of segment sales) in the comparable 2024 period. On a comparable currency neutral basis, Food Ingredients Segment Adjusted Operating EBITDA increased 24% in 2025 compared to the prior year period, which was primarily driven by productivity gains and favorable net pricing.
Previous report
Health & Biosciences Segment Adjusted Operating EBITDA decreased $2 million, or 1% on a reported basis, to $150 million in the third quarter of 2025 (26.0% of segment sales) from $152 million in the comparable 2024 period (26.8% of segment sales). On a comparable currency neutral basis, Health & Biosciences Segment Adjusted Operating EBITDA increased 3% in 2025 compared to the prior year period, which was primarily driven by productivity gains.
Previous report
Scent Segment Adjusted Operating EBITDA increased $7 million, or 5% on reported basis, to $135 million in the third quarter of 2025 (20.7% of segment sales) from $128 million (20.9% of segment sales) in the comparable 2024 period. On a comparable currency neutral basis, Scent Segment Adjusted Operating EBITDA increased 6% in 2025 compared to the prior year period, which was primarily driven by volume increases.
Previous report
FIRST NINE MONTHS 2025 IN COMPARISON TO FIRST NINE MONTHS 2024
Previous report
Sales
Previous report
Sales for the first nine months of 2025 decreased $412 million, or 5% on a reported basis, to $8.301 billion compared to $8.713 billion in the 2024 period. On a comparable currency neutral basis, sales for the first nine months of 2025 increased 2% compared to the 2024 period. Exchange rate variations had an unfavorable impact on net sales in the first nine months of 2025 of 1%. The effect of exchange rates can vary by business and region, depending upon the mix of sales priced in U.S. dollars as compared to other currencies. In addition, the decrease in sales was primarily driven by the change in business portfolio mix due to divestitures which was approximately $506 million, offset in part by volume increases across various business lines.
Previous report
Sales Performance by Segment
Previous report
(1)Impact of business divestitures includes the results of the F&E UK business that was divested on September 1, 2024 (for September 2024), the Cosmetic Ingredients business that was divested on April 2, 2024 (for April 2, 2024 to September 30, 2024), and the Pharma Solutions disposal group and Nitrocellulose business that were divested on May 1, 2025 and May 9, 2025, respectively (for July 1, 2024 to September 30, 2024).
Previous report
Taste
Previous report
Taste sales in 2025 increased $41 million, or 2% on a reported basis, to $1.893 billion compared to $1.852 billion in the prior year period. On a comparable currency neutral basis, Taste sales increased 5% in 2025 compared to the prior year period, driven by volume increases and favorable net pricing across all business units. Exchange rate variations had an unfavorable impact and the impact of the divestiture of the F&E UK business was approximately $15 million.
Previous report
Food Ingredients
Previous report
Food Ingredients sales in 2025 decreased $70 million, or 3% on a reported basis, to $2.476 billion compared to $2.546 billion in the prior year period. On a comparable currency neutral basis, Food Ingredients sales decreased 2% in 2025 compared to the prior year period, primarily driven by volume decreases and unfavorable net pricing. Exchange rates variations had an unfavorable impact.
Previous report
Health & Biosciences
Previous report
Health & Biosciences sales in 2025 increased $41 million, or 2% on a reported basis, to $1.694 billion compared to $1.653 billion in the prior year period. On a comparable currency neutral basis, Health & Biosciences sales increased 3% in 2025 compared to the prior year period, primarily driven by price and volume increases. Exchange rate variations had an unfavorable impact.
Previous report
Scent
Previous report
Scent sales in 2025 remained flat at $1.869 billion compared to $1.861 billion in the prior year period. On a comparable currency neutral basis, Scent sales increased 3% in 2025 compared to the prior year period, primarily driven by price and volume increases in the Fine Fragrances business unit. Exchange rate variations had an unfavorable impact and the divestiture of the Cosmetic Ingredients business had a sales impact of approximately $27 million.
Previous report
Pharma Solutions
Previous report
Pharma Solutions sales in 2025 decreased $432 million, or 54% on a reported basis, to $369 million compared to $801 million in the prior year period. On a comparable currency neutral basis, Pharma Solutions sales increased 12% in 2025 compared to the prior year period, driven by volume and price increases. The impact of exchange rate variations had an unfavorable impact and the divestitures of the Pharma Solutions disposal group and Nitrocellulose disposal group had a sales impact of approximately $464 million. This comparison reflects nine months of contributions from both businesses in 2024, whereas 2025 includes only four months of activity prior to the divestitures, contributing significantly to the year-over-year decline.
Previous report
Cost of sales
Previous report
Cost of sales decreased $316 million to $5.253 billion (63.3% of sales) in the first nine months of 2025 compared to $5.569 billion (63.9% of sales) in the 2024 period. The decrease in cost of sales was primarily driven by the change in business portfolio mix due to divestitures which was approximately $320 million.
Previous report
S&A expenses decreased $113 million to $1,365 million (16.4% of sales) in the first nine months of 2025 compared to $1.478 billion (17.0% of sales) in the 2024 period. The decrease in S&A expenses was primarily driven by a decrease in incentive compensation expense, lower consulting fees and professional and legal fees incurred in relation to business divestitures.
Previous report
Amortization of Acquisition-Related Intangibles
Previous report
Amortization expenses decreased to $434 million in the first nine months of 2025 compared to $467 million in the 2024 period. The decrease in amortization expense was primarily driven by the intangible assets of the Pharma Solutions disposal group being classified as “held for sale,” and therefore no longer recognizing amortization expense on those intangible assets. See Note 3 for additional information.
Previous report
Restructuring and Other Charges
Previous report
Restructuring and other charges increased to $54 million in the first nine months of 2025 compared to $6 million in the 2024 period. The increase was driven by higher severance costs incurred as part of the IFF Productivity Program in 2025. See Note 4 for additional information.
Previous report
Interest Expense
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Gain on Extinguishment of Debt
Previous report
Gain on extinguishment of debt was $488 million in the first nine months of 2025 due to the repurchase of approximately $2.5 billion of notes for approximately $2.0 billion in cash. See Note 13 for additional information.
Previous report
Losses (Gains) on Business Disposals
Previous report
Losses (gains) on business disposals was $111 million in the first nine months of 2025 compared to $(348) million in the 2024 period. The net loss in 2025 was primarily driven by the Pharma Solutions disposal group and Nitrocellulose business divestitures, while the gain recognized in 2024 related to the Cosmetic Ingredients business divestiture, offset in part by the loss recognized on the sale of the F&E UK business. See Note 3 for additional information.
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Reworded paragraphs (46)
Previous wording
Effective January 1, 2025, the Company implemented a reorganization of its internal structure, which impacted the way the CODM, the Chief Executive Officer, allocates resources and assesses financial performance. As a result, the Company has updated its reportable segments beginning with the first quarter of 2025. Specifically, the former Nourish segment has been separated into two new reportable segments: Taste and Food Ingredients. The Taste segment (formerly the Flavors business within Nourish) includes flavor compounds and natural taste solutions used in food and beverage applications. The Food Ingredients segment (formerly the Ingredients business within Nourish) includes a broad portfolio of natural and plant-based specialty ingredients that provide texturizing and food protection capabilities, as well as soy and pea protein solutions, emulsifiers, and sweeteners. In addition, immaterial business transfers occurred between Food Ingredients and Pharma Solutions, and between Health & Biosciences and Taste. Thus, starting in the first quarter of 2025, we are organized into five reportable operating segments: Taste, Food Ingredients, Health & Biosciences, Scent and, until the completion of the divestitures of both the Pharma Solutions and Nitrocellulose disposal groups, Pharma Solutions.
Current wording
We are organized into four reportable operating segments: Taste, Food Ingredients, Health & Biosciences, and Scent.
Previous wording
Our Taste segment consists of a range of flavor compounds and natural taste solutions that are ultimately used by our customers in savory products (soups, sauces, meat, fish, poultry, snacks, etc.), beverages (juice drinks, carbonated or flavored beverages, spirits, etc.), sweets (bakery products, candy, cereal, chewing gum, etc.), and dairy products (yogurt, ice cream, cheese, etc.). Flavors also include value-added spices and seasoning ingredients for meat, food service, convenience, alternative protein and culinary products.
Current wording
Our Taste segment consists of the development and production of a range of flavor compounds and natural taste solutions that are ultimately used by our customers in a diverse variety of products, including savory products (soups, sauces, meat, fish, poultry, snacks, etc.), beverages (juice drinks, carbonated or flavored beverages, spirits, etc.), sweets (bakery products, candy, cereal, chewing gum, etc.), and dairy products (yogurt, ice cream, cheese, etc.). Taste also includes value-added spices and seasoning ingredients for meat, food service, convenience, alternative protein and culinary products.
Previous wording
Our Food Ingredients segment consists of a diversified portfolio across natural and plant-based specialty food ingredients derived from herbs and plants that provide texturizing solutions used in the food industry, food protection solutions used in food and beverage products, as well as specialty soy and pea protein with value-added formulations, emulsifiers and sweeteners. Natural food protection ingredients consist of natural antioxidants and anti-microbials used for natural food preservation and shelf-life extension for beverages, cosmetic and healthcare products, pet food and feed additives. Food Ingredients also includes savory solutions (such as spices, marinades, mixtures) and inclusion products (such as products combining flavorings with fruit, vegetables and other natural ingredients).
Current wording
Our Food Ingredients segment consists of a diversified portfolio across natural, artificial and plant-based specialty food ingredients that provide functional properties solutions for food and beverage products, as well as specialty soy protein with value-added formulations, emulsifiers and sweeteners. Natural food protection ingredients consist of natural antioxidants and anti-microbials used for natural food preservation and shelf-life extension for beverages, cosmetic and healthcare products, pet food and feed additives. Food Ingredients also includes savory solutions (such as spices, marinades, and mixtures) and inclusion products (such as products combining flavorings with fruit, vegetables and other natural ingredients).
Previous wording
Our Health & Biosciences segment consists of the development and production of an advanced biotechnology-derived portfolio of enzymes, food cultures, probiotics and specialty ingredients for food and non-food applications. Among many other applications, this biotechnology-driven portfolio includes cultures for use in fermented foods such as yogurt, cheese and fermented beverages, probiotic strains, many with documented clinical health claims for use as dietary supplements and through industrial fermentation the production of enzymes and microorganisms that provide product and process performance benefits to household detergents, animal feed, ethanol production and brewing. Health & Biosciences is comprised of Health & Food Biosciences, Home & Personal Care, Animal Nutrition and Grain Processing.
Current wording
Our Health & Biosciences segment consists of the development and production of an advanced biotechnology-derived portfolio of enzymes, food cultures, probiotics and specialty ingredients for food and non-food applications. Among many other applications, our portfolio includes cultures for use in fermented foods such as yogurt, cheese and fermented beverages, probiotic strains, household detergents, animal feed, ethanol production and brewing. Health & Biosciences is comprised of Health, Food Biosciences, Home & Personal Care, Animal Nutrition and Grain Processing.
Previous wording
Our Scent segment creates fragrance compounds and fragrance ingredients that are integral elements in the world’s finest perfumes and best-known household and personal care products. Consumer insights, science and creativity are at the heart of our Scent business, and, along with our unique portfolio of natural and synthetic ingredients, global footprint, innovative technologies and know-how, and customer intimacy, we believe these make us a market leader in scent products. The Scent segment is comprised of Fragrance Compounds and Fragrance Ingredients. We completed the divestiture of our Cosmetic Ingredients business, previously within the Scent segment, on April 2, 2024.
Current wording
Our Scent segment creates fragrance compounds and fragrance ingredients that are integral elements in the world’s finest perfumes and best-known household and personal care products. Consumer insights, science and creativity are at the heart of our Scent business, along with our unique portfolio of natural and synthetic ingredients, global footprint, innovative technologies and know-how, and customer intimacy. The Scent segment is comprised of Fragrance Compounds and Fragrance Ingredients.
Previous wording
Our Pharma Solutions segment produced, among other things, a vast portfolio of cellulosics and seaweed-based pharmaceutical excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling the development of more effective pharmaceutical finished dosage formulations. Our excipients are used in prescription and over-the-counter pharmaceuticals and dietary supplements. Our Pharma Solutions products also serve a variety of other specialty and industrial end-uses including coatings, inks, electronics, agriculture and consumer products. During March 2024, we announced the sale process and entered into an agreement to sell the Pharma Solutions business disposal group, that is primarily made up of most businesses within the Company’s existing Pharma Solutions reportable segment. The transaction closed on May 1, 2025. During October 2024, we entered into an agreement to sell the Nitrocellulose disposal group, which was within our existing Pharma Solutions reportable segment. The transaction closed on May 9, 2025. See Note 3 for additional information. As of May 9, 2025, there is no remaining business in the Pharma Solutions reportable segment.
Current wording
We completed the divestiture of our Pharma Solutions disposal group, which included certain adjacent businesses, on May 1, 2025 and we divested our nitrocellulose business, which was within our Pharma Solutions segment, on May 9, 2025. Our former Pharma Solutions segment produced, among other things, a vast portfolio of cellulosics and seaweed-based pharmaceutical excipients, used in prescription and over-the-counter pharmaceuticals and dietary supplements.
Previous wording
Sales in the third quarter of 2025 decreased $231 million, or 8% on a reported basis, to $2.694 billion compared to $2.925 billion in the 2024 period. On a comparable currency neutral basis, sales in the third quarter of 2025 remained flat compared to the 2024 period primarily driven by favorable net pricing and volume increases driven by Scent and Taste. Exchange rate variations had a favorable impact. The effect of exchange rates can vary by business and region, depending upon the mix of sales priced in U.S. dollars as compared to other currencies. The divestiture impacts of approximately $282 million were from the sale of the Pharma Solutions disposal group, Nitrocellulose disposal group, and Flavors & Essences UK (“F&E UK”) (“change in business portfolio mix due to divestitures”).
Current wording
Sales in the first quarter of 2026 decreased$102 million, or 4% on a reported basis, to$2.741 billion compared to $2.843 billion in the 2025 period. On a comparable currency neutral basis, sales in the first quarter of 2026 increased 3% compared to the 2025 period. Exchange rate variations had a favorable impact on net sales of 4%. The effect of exchange rates can vary by business and region, depending upon the mix of sales priced in U.S. dollars as compared to other currencies. Comparable portfolio results exclude the impact of divestitures of Soy Crush, Concentrates, and Lecithin business (the “SCL disposal group”), the Rene Laurent business in France, and the Pharma Solutions disposal group and Nitrocellulose business, which was approximately $289 million.
Previous wording
Gross profit in the third quarter of 2025 decreased $69 million, or 7%, to $983 million (36.5% of sales) compared to $1.052 billion (36.0% of sales) in the 2024 period. The decrease in gross profit was primarily driven by the change in business portfolio mix due to divestitures of approximately $103 million, offset in part by favorable net pricing and productivity gains.
Current wording
Gross profit in the first quarter of 2026 decreased$17 million, or 2% on a reported basis, to$1.018 billion (37.1% of sales) compared to $1,035 million (36.4% of sales) in the 2025 period. The decrease in gross profit was primarily driven by the impacts of divestitures of $87 million, offset in part by the effect of exchange rates, volume increases and productivity gains.
Previous wording
THIRD QUARTER 2025 IN COMPARISON TO THIRD QUARTER 2024
Current wording
FIRST QUARTER 2026 IN COMPARISON TO FIRST QUARTER 2025
Previous wording
Taste sales in 2025 increased $12 million, or 2% on a reported basis, to $635 million compared to $623 million in the prior year period. On a comparable currency neutral basis, Taste sales increased 2% in 2025 compared to the prior year period, primarily driven by price increases. Exchange rate variations had a favorable impact and the impact of the divestiture of the F&E UK business had a sales impact of approximately $4 million.
Current wording
Taste sales in 2026 increased$29 million, or 5% on a reported basis, to $656 million compared to $627 million in the prior year period. On a comparable currency neutral basis, Taste sales increased 2% in 2026 compared to the prior year period primarily driven byvolume increases and favorable net pricing in the Flavors business unit. Exchange rate variations had a favorable impact of 4%. Comparable portfolio results exclude the impact of the divestiture of the Rene Laurent business with an impact of approximately$6 million.
Previous wording
Health & Biosciences sales in 2025 increased $9 million, or 2% on a reported basis, to $577 million compared to $568 million in the prior year period. On a comparable currency neutral basis, Health & Biosciences sales remained flat in 2025 compared to the prior year period, primarily driven by price and volume increases across various business units, offset by volume decreases in the Health business unit. Exchange rate variations had a favorable impact.
Current wording
Health & Biosciences sales in 2026 increased $55 million, or 10% on a reported basis, to $595 million compared to $540 million in the prior year period. On a comparable currency neutral basis, Health & Biosciences sales increased 5% in 2026 compared to the prior year period driven by volume increases across various business units. Exchange rate variations had a favorable impact of 5%.
Previous wording
Scent sales in 2025 increased $39 million, or 6% on a reported basis, to $652 million compared to $613 million in the prior year period. On a comparable currency neutral basis, Scent sales increased 5% in 2025 compared to the prior year period, primarily driven by volume increases in Fine Fragrance. Exchange rate variations had a favorable impact.
Current wording
Scent sales in 2026 increased $37 million, or 6% on a reported basis, to $651 million compared to $614 million in the prior year period. On a comparable currency neutral basis, Scent sales increased 1% in 2026 compared to the prior year period primarily driven by volume increases in Fragrance Compounds. Exchange rate variations had a favorable impact of 5%.
Previous wording
The Company completed the divestiture of its Pharma Solutions business on May 1, 2025, and its Nitrocellulose business on May 9, 2025. Accordingly, there are no Pharma Solutions segment results reported for the third quarter of 2025.
Current wording
The Company completed the divestiture of the Pharma Solutions disposal group on May 1, 2025, and the Nitrocellulose business on May 9, 2025. Accordingly, there were no Pharma Solutions segment results reported for the first quarter of 2026.
Previous wording
R&D expenses increased $12 million to $174 million (6.5% of sales) in the third quarter of 2025 compared to $162 million (5.5% of sales) in the third quarter of 2024. The increase in R&D expenses was primarily driven by an increase in employee related costs and operating expenses for R&D related activities, offset by the change in business portfolio mix due to divestitures, with an impact of approximately $2 million.
Current wording
R&D expenses increased $2 million to $166 million (6.1% of sales) in the first quarter of 2026 compared to $164 million (5.8% of sales) in the first quarter of 2025. The increase in R&D expenses was primarily driven by an increase in employee related costs and operating expenses for R&D related activities, offset by divestitures, with an impact of approximately $5 million.
Previous wording
S&A expenses decreased $74 million to $421 million (15.6% of sales) in the third quarter of 2025 compared to $495 million (16.9% of sales) in the third quarter of 2024. The decrease in S&A expenses was primarily driven by a decrease in the incentive compensation expense and lower consulting fees incurred in relation to business divestitures.
Current wording
S&A expenses decr eased $34 million to $427 million (15.6% of sales) in the first quarter of 2026 compared to $461 million (16.2% of sales) in thefirst quarter of 2025. The decrease in S&A expenses was primarily driven by lower consulting fees incurred in relation to business divestitures.
Previous wording
Restructuring and other charges increased to $16 million in the third quarter of 2025 compared to $1 million in the third quarter of 2024. The increase was driven by higher severance costs incurred as part of the IFF Productivity Program. See Note 4 for additional information.
Current wording
Restructuring and other charges decreased to$6 million in the first quarter of 2026 compared to $17 million in the first quarter of 2025. The decrease in 2026 was driven by a decrease in severance expense. Higher severance costs were incurred in the first quarter of 2025 at the beginning of the Productivity program. See Note 4 for additional information.
Previous wording
The impairment of goodwill was $1.153 billion in the first nine months of 2025 compared to $64 million in the 2024 period. The 2025 impairment of goodwill was related to the Food Ingredients reporting unit, and the 2024 impairment of goodwill was related to the Pharma Solutions disposal group. See Note 3 for additional information.
Current wording
There was no impairment of goodwill in the first quarter of 2026 compared to $1.153 billion in the first quarter of 2025, which was related to the Food Ingredients reporting unit. See Note 11 for additional information.
Previous wording
Interest expense decreased to $48 million in the third quarter of 2025 compared to $74 million in the third quarter of 2024. The decrease in interest expense was due to lower debt outstanding. See Note 13 for additional information.
Current wording
Interest expense decreased to$44 million in the first quarter of 2026 compared to $71 million in the first quarter of 2025. The decrease in interest expense was due to lower debt outstanding. See Note 13 for additional information.
Previous wording
Other expense, net, decreased to $14 million in the third quarter of 2025 compared to $28 million in the third quarter of 2024. The decrease of $14 million was primarily due to lower foreign exchange losses. See Note 8 for additional information.
Current wording
Other expense, net, was$13 million in the first quarter of 2026 compared to $20 million in the first quarter of 2025. The decrease of$7 million was primarily due to lower foreign exchange losses. See Note 8 for additional information.
Previous wording
The effective tax rate for the three months ended September 30, 2025 was 26.8% compared to 37.9% for the three months ended September 30, 2024. The decrease was primarily driven by the tax impacts resulting from the entity realignment project, business divestitures and changes in the mix of earnings following the divestitures.
Current wording
The effective tax rate for the three months ended March 31, 2026 was 18.7% compared to (2.3)% for the three months ended March 31, 2025. The quarter-over-quarter increase was primarily due to a goodwill impairment charge in the prior year, the entity realignment project, business divestitures and the mix of earnings.
Previous wording
The Company uses Segment Adjusted Operating EBITDA for internal reporting and performance measurement purposes. Segment Adjusted Operating EBITDA is defined as Income Before Taxes before depreciation and amortization expense, interest expense, restructuring and other charges and certain items that are not related to recurring operations. Our determination of reportable segments was made on the basis of our strategic priorities within each segment and corresponds to the manner in which our Chief Operating Decision Maker reviews and evaluates operating performance to make decisions about resources to be allocated to the segment. In addition to our strategic priorities, segment reporting is also based on differences in the products and services we provide.
Current wording
The Company uses Segment Adjusted Operating EBITDA for internal reporting and performance measurement purposes. Segment Adjusted Operating EBITDA is defined as (Loss) Income Before Taxes before depreciation and amortization expense, interest expense, restructuring and other charges and certain items that are not related to recurring operations. Our determination of reportable segments was made on the basis of our strategic priorities within each segment and corresponds to the manner in which our Chief Operating Decision Maker reviews and evaluates operating performance to make decisions about resources to be allocated to the segment. In addition to our strategic priorities, segment reporting is also based on differences in the products and services we provide.
Previous wording
(2)Comparable portfolio results for 2024 exclude the impact of divestitures. Impact of business divestitures includes the results of the F&E UK business that was divested on September 1, 2024 (for September 2024), and the Pharma Solutions disposal group and Nitrocellulose business that were divested on May 1, 2025 and May 9, 2025, respectively (for July 1, 2024 to September 30, 2024).
Current wording
(2)Comparable portfolio results for 2025 exclude the impact of divestitures.
Previous wording
Following the completed divestitures of the Pharma Solutions disposal group on May 1, 2025 and the Nitrocellulose business on May 9, 2025, the Company reallocated certain corporate costs previously attributed to the Pharma Solutions segment. These costs have been redistributed across the Taste, Food Ingredients, Health & Biosciences, and Scent segments for comparability purposes.
Current wording
Following the completed divestitures of the Pharma Solutions group on May 1, 2025 and the Nitrocellulose business on May 9, 2025, we retrospectively reallocated certain corporate costs previously attributed to the Pharma Solutions segment. These costs have been redistributed across the Taste, Food Ingredients, Health & Biosciences, and Scent segments for comparability purposes.
Previous wording
The Company completed the divestiture of its Pharma Solutions business on May 1, 2025, and its Nitrocellulose business on May 9, 2025. Accordingly, there are no Pharma Solutions segment results reported for the third quarter of 2025.
Current wording
The Company completed the divestiture of its Pharma Solutions business on May 1, 2025, and its Nitrocellulose business on May 9, 2025. Accordingly, there are no Pharma Solutions segment results reported for the first quarter of 2026.
Previous wording
We had cash and cash equivalents of $621 million on the Consolidated Balance Sheets at September 30, 2025 compared to$471 million, inclusive of $2 million in Assets held for sale on the Consolidated Balance Sheets, at December 31, 2024. A portion of this balance was held outside the United States. Cash balances held in foreign jurisdictions are, in most circumstances, available to be repatriated to the United States.
Current wording
We had cash and cash equivalents of $562 million on the Consolidated Balance Sheets at March 31, 2026 compared to $590 million on the Consolidated Balance Sheets at December 31, 2025 and, of this balance, a majority was held outside the United States. Cash balances held in foreign jurisdictions are, in most circumstances, available to be repatriated to the United States.
Previous wording
Effective utilization of the cash generated by our international operations is a critical component of our strategy. We regularly repatriate cash from our non-U.S. subsidiaries to fund financial obligations in the U.S. As we repatriate these funds tothe U.S., there will be required income taxes payable in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. Accordingly, as of September 30, 2025, we had a deferred tax liability of approximately $144 million for the effect of repatriating the funds to the U.S., attributable to various non-U.S. subsidiaries. There is no deferred tax liability associated with non-U.S. subsidiaries where we intend to indefinitely reinvest the earnings to fund local operations and/or capital projects.
Current wording
Effective utilization of the cash generated by our international operations is a critical component of our strategy. We regularly repatriate cash from our non-U.S. subsidiaries to fund financial obligations in the U.S. As we repatriate these funds to the U.S., there will be required income taxes payable in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. Accordingly, as of March 31, 2026, we had a deferred tax liability of approximately $176 million for the effect of repatriating the funds to the U.S., attributable to various non-U.S. subsidiaries. There is no deferred tax liability associated with non-U.S. subsidiaries where we intend to indefinitely reinvest the earnings to fund local operations and/or capital projects.
Previous wording
Cash flows provided by operating activities for the nine months ended September 30, 2025 were $532 million, or 6.4% of sales, compared to $681 million, or 7.8% of sales, for the nine months ended September 30, 2024. The decrease in cash flows from operating activities during 2025 was primarily driven by the increase in working capital, largely related to inventories, accruals for incentive compensation, offset in part by accounts receivables and accounts payable, excluding the impact of non-cash adjustments.
Current wording
Cash flows provided by operating activities for the three months ended March 31, 2026 was $257 million, or 9.4% of sales, compared to $127 million, or 4.5% of sales, for the three months ended March 31, 2025. The increase in cash flows from operating activities during 2026 was primarily driven by a smaller incentive compensation payout made in 2026 related to 2025 results compared to the prior year, and an increase in inventories in the prior year.
Previous wording
Cash Flows Provided By Investing Activities
Current wording
Cash flows provided by investing activities for the three months ended March 31, 2026 was $23 million compared to cash flows used in investing activities of $157 million in the prior year period. The increase in cash flows provided by investing activities was primarily driven by net proceeds received from business divestitures of $198 million during the three months ended March 31, 2026, including $105 million received from the divestiture of the SCL disposal group and $93 million received primarily from an earnout based on 2024 results in connection with the divestiture of the Pharma Solutions disposal group.
Previous wording
We expect that capital spending in 2025 will be approximately 5.5% of sales, up from approximately 4.0% in 2024.
Current wording
We have evaluated and re-prioritized our capital projects and expect that capital spending in 2026 will be approximately 6% of sales (net of potential grants and other reimbursements from government authorities), up from 5.5% in 2025.
Previous wording
Cash Flows Used In Financing Activities
Current wording
Cash flows used in financing activities for the three months ended March 31, 2026 was $301 million compared to cash flows provided by financing activities of $169 million in the prior year period. The increase in cash flows used in financing activities was primarily driven by an increase in net repayments of commercial paper during the three months ended March 31, 2026, compared to net borrowings of commercial paper during the three months ended March 31, 2025. In addition, during 2026, we repurchased $35 million of common stock, as part of the share repurchase program that began on October 1, 2025.
Previous wording
We paid dividends totaling $306 million in the 2025 period. We declared a cash dividend per share of $0.40 in the third quarter of 2025 that was paid on October 10, 2025 to all shareholders of record as of September 29, 2025.
Current wording
We paid dividends totaling $102 million in each of the three months ended March 31, 2025 and 2026. We declared a cash dividend per share of $0.40 in the first quarter of 2026 that was paid on April 10, 2026 to all shareholders of record as of March 20, 2026.
Previous wording
Our capital allocation strategy seeks to maintain investment grade ratings while investing in the business, continuing to pay dividends, repurchasing shares outstanding and repaying debt. The Company does not have any rating downgrade triggers that would accelerate the maturity dates of its senior unsecured debt. However, any downgrade in our credit rating may, depending on the extent of such downgrade, negatively impact our ability to raise additional debt capital, our liquidity and capital position, and may increase our cost of borrowing for new capital raises. In addition, our existing Revolving Credit Facility has pricing grids that are based on credit rating, such that our cost of borrowing may increase as our credit rating decreases. We make capital investments in our businesses to support our operational needs and strategic long-term plans. We are committed to maintaining our history of paying a dividend to investors which is determined by our Board of Directors at its discretion based on various factors.
Current wording
Our capital allocation strategy seeks to maintain investment grade ratings while investing in the business, continuing to pay dividends, repurchasing outstanding shares and repaying debt. We make capital investments in our businesses to support our operational needs and strategic long-term plans. We are committed to maintaining our history of paying a dividend to investors which is determined by our Board of Directors at its discretion based on various factors.
Previous wording
As of September 30, 2025, we had no outstanding borrowings under our $2 billion Revolving Credit Facility. The amount that we are able to draw down under the Revolving Credit Facility is limited by financial covenants as described in more detail below. As of September 30, 2025, our available capacity was $2 billion under the Revolving Credit Facility.
Current wording
As of March 31, 2026, we had no outstanding borrowings under our $2 billion Revolving Credit Facility. The amount that we are able to draw down under the Revolving Credit Facility is limited by financial covenants as described in more detail below. As of March 31, 2026, our available capacity was$2 billion under the Revolving Credit Facility.
Previous wording
At September 30, 2025, the Company was in compliance with all financial and other covenants, including the net debt to credit adjusted EBITDA(1) ratio. At September 30, 2025, our net debt to credit adjusted EBITDA(1) ratio was 2.53 to 1.0 as defined by the credit facility agreements, which is below the relevant level provided by our financial covenants of existing outstanding debt.
Current wording
At March 31, 2026, we were in compliance with all financial and other covenants, including the net debt to credit adjusted EBITDA(1) ratio. At March 31, 2026, our net debt to credit adjusted EBITDA(1) ratio was 2.53 to 1.0 as defined by the credit facility agreements, which is below the relevant level provided by our financial covenants of existing outstanding debt.
Previous wording
(1)Specified items consisted of restructuring and other charges, impairment of goodwill, divestiture and integration costs, strategic initiatives costs, regulatory costs, gain on debt extinguishment, entity realignment costs and other costs that are not related to recurring operations.
Current wording
(1)Specified items consisted of restructuring and other charges, divestiture costs, strategic initiatives costs, regulatory costs, gain on debt extinguishment, and other costs that are not related to recurring operations.
Previous wording
(2)Non-cash items consisted of losses on business disposals, loss on assets classified as held for sale, pension termination losses, and stock-based compensation.
Current wording
(2)Non-cash items consisted of losses on business disposals, loss on assets classified as held for sale, and stock-based compensation.
Previous wording
As of September 30, 2025, we had $5.636 billion aggregate principal amount outstanding in senior unsecured notes, with $939 million principal amount denominated in EUR and $4.697 billion principal amount denominated in USD. The notes bear effective interest rates ranging from 1.56% per year to 5.12% per year, with maturities from September 25, 2026 to December 1, 2050. See Note 13 for additional information.
Current wording
As of March 31, 2026, we had $5.621 billion aggregate principal amount outstanding in senior unsecured notes, with $924 million principal amount denominated in EUR and $4.697 billion principal amount denominated in USD. The notes bear effective interest rates ranging from 1.56% per year to 5.12% per year, with maturities from September 25, 2026 to December 1, 2050. See Note 13 for additional information.
Previous wording
We expect to contribute a total of $5 million to our U.S. pension plans and a total of $22 million to our non-U.S. pension plans during 2025. During the nine months ended September 30, 2025, $17 million of contributions were made to the non-U.S. pension plans and $3 million of contributions were made with respect to the non-qualified U.S. pension plans. We also expect to contribute $4 million to our postretirement benefits other than pension plans during 2025. During the nine months ended September 30, 2025, $2 million of benefit payments were made to postretirement benefits other than pension plans.
Current wording
We expect to contribute a total of $5 million to our U.S. pension plans and a total of $17 million to our non-U.S. pension plans during 2026. During the three months ended March 31, 2026, $4 million of contributions were made to the non-U.S. pension plans and $1 million of contributions were made with respect to the non-qualified U.S. pension plan. We also expect to make $4 million of payments to our postretirement benefits other than pension plans during 2026. During the three months ended March 31, 2026, $2 million of benefit payments were made to postretirement benefits other than pension plans.
Previous wording
We use non-GAAP financial measures in this Form 10-Q, including: (i) comparable currency neutral metrics, (ii) adjusted operating EBITDA and comparable adjusted operating EBITDA, (iii) adjusted operating EBITDA margin, and (iv) net debt to credit adjusted EBITDA. We also provide the non-GAAP measure net debt solely for the purpose of providing information on the extent to which the Company is in compliance with debt covenants contained in its debt agreements. Our non-GAAP financial measures are defined below.
Current wording
We use non-GAAP financial measures in this Form 10-Q, including: (i) comparable currency neutral metrics, (ii) adjusted operating EBITDA, comparable currency neutral adjusted operating EBITDA, (iii) adjusted operating EBITDA margin, and (iv) net debt to credit adjusted EBITDA. We also provide the non-GAAP measure net debt solely for the purpose of providing information on the extent to which the Company is in compliance with debt covenants contained in its debt agreements. Our non-GAAP financial measures are defined below.
Previous wording
Comparable results for the three months and nine months ended September 30, 2024 exclude the impact of divestitures.
Current wording
Comparable results for the first quarter exclude the impact of divestitures.
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Rearranged previous paragraphs (17)
Previous report — wording carried elsewhere
Loss on Assets Classified as Held for Sale
Previous report — wording carried elsewhere
Comparable currency neutral reported performance by segment was as follows:
Previous report — wording carried elsewhere
(2)Currency neutral sales are calculated by translating current year invoiced sale amounts at the exchange rates for the corresponding prior year period.
Previous report — wording carried elsewhere
Research and Development (“R&D”) Expenses
Previous report — wording carried elsewhere
R&D expenses increased $19 million to $520 million (6.3% of sales) in the first nine months of 2025 compared to $501 million (5.8% of sales) in the 2024 period. The increase in R&D expenses was primarily driven by an increase in employee related costs and operating expenses for R&D related activities, offset the change in business portfolio mix due to divestitures, with an impact of approximately $13 million.
Previous report — wording carried elsewhere
Selling and Administrative (“S&A”) Expenses
Previous report — wording carried elsewhere
Interest expense decreased to $180 million in the first nine months of 2025 compared to $236 million in the 2024 period. The decrease in interest expense was due to lower debt outstanding. See Note 13 for additional information.
Previous report — wording carried elsewhere
Loss on Assets Classified as Held for Sale
Previous report — wording carried elsewhere
The Company uses Segment Adjusted Operating EBITDA for internal reporting and performance measurement purposes. Segment Adjusted Operating EBITDA is defined as Income Before Taxes before depreciation and amortization expense, interest expense, restructuring and other charges and certain items that are not related to recurring operations. Our determination of reportable segments was made on the basis of our strategic priorities within each segment and corresponds to the manner in which our Chief Operating Decision Maker reviews and evaluates operating performance to make decisions about resources to be allocated to the segment. In addition to our strategic priorities, segment reporting is also based on differences in the products and services we provide.
Previous report — wording carried elsewhere
Adjusted Operating EBITDA performance by segment was as follows:
Previous report — wording carried elsewhere
Comparable Currency Neutral Adjusted Operating EBITDA by segments was as follows:
Previous report — wording carried elsewhere
(1)Refer to Note 6 for a reconciliation of Adjusted Operating EBITDA to Income (Loss) Before Taxes.
Previous report — wording carried elsewhere
(3)Currency neutral amounts are calculated by translating current year transaction amounts at the exchange rates for the corresponding prior year period.
Previous report — wording carried elsewhere
Following the completed divestitures of the Pharma Solutions disposal group on May 1, 2025 and the Nitrocellulose business on May 9, 2025, the Company reallocated certain corporate costs previously attributed to the Pharma Solutions segment. These costs have been redistributed across the Taste, Food Ingredients, Health & Biosciences, and Scent segments for comparability purposes.
Previous report — wording carried elsewhere
Food Ingredients Segment Adjusted Operating EBITDA
Previous report — wording carried elsewhere
Health & Biosciences Segment Adjusted Operating EBITDA
Previous report — wording carried elsewhere
Pharma Solutions Segment Adjusted Operating EBITDA