# INTERNATIONAL FLAVORS & FRAGRANCES INC (IFF)

Informational only - not investment advice.

CIK: 0000051253
SIC: 2860 Industrial Organic Chemicals
SIC breadcrumb: [Manufacturing](/division/D/) > [Chemicals And Allied Products](/major-group/28/) > [SIC 2860 Industrial Organic Chemicals](/industry/2860/)
Latest 10-K filed: 2026-02-27
SEC page: https://www.sec.gov/edgar/browse/?CIK=51253
Filing source: https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0000051253-26-000006 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000051253.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 10,890,000,000 USD | 2025 | verified |
| Net income | -359,000,000 USD | 2025 | verified |
| Assets | 25,539,000,000 USD | 2025 | verified |
| Free cash flow | 256,000,000 USD | 2025 | computed |
| Net margin | -3.30% | 2025 | computed |
| Operating margin | -3.51% | 2025 | computed |
| Revenue YoY | -5.17% | 2025 | computed |
| ROE | -2.54% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | IFF | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -3.3% | -4.5% | 56 | 10 |
| Operating margin | -3.5% | -3.5% | 50 | 9 |
| Revenue growth | -5.2% | -3.7% | 44 | 10 |
| FCF margin | 2.4% | 1.8% | 56 | 10 |
| ROE | -2.5% | -7.3% | 64 | 12 |
| ROA | -1.4% | -3.4% | 64 | 12 |
| Liabilities / equity | 0.80 | 0.92 | 36 | 12 |
| Current ratio | 1.42 | 2.39 | 9 | 12 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 2860 Industrial Organic Chemicals, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 10890000000 | USD | 2025 | 2026-02-27 |
| Net income | -359000000 | USD | 2025 | 2026-02-27 |
| Assets | 25539000000 | USD | 2025 | 2026-02-27 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000051253.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  | 3,116,350,000 | 3,398,719,000 | 3,977,539,000 | 5,140,000,000 | 5,084,000,000 | 11,656,000,000 | 12,440,000,000 | 11,479,000,000 | 11,484,000,000 | 10,890,000,000 |
| Net income |  |  | 405,249,000 | 295,665,000 | 339,781,000 | 460,000,000 | 367,000,000 | 279,000,000 | -1,864,000,000 | -2,587,000,000 | 267,000,000 | -359,000,000 |
| Operating income |  |  | 552,955,000 | 552,630,000 | 583,882,000 | 665,000,000 | 566,000,000 | 585,000,000 | -1,326,000,000 | -2,110,000,000 | 766,000,000 | -382,000,000 |
| Gross profit |  |  | 1,395,563,000 | 1,472,463,000 | 1,682,707,000 | 2,113,000,000 | 2,086,000,000 | 3,735,000,000 | 4,151,000,000 | 3,681,000,000 | 4,124,000,000 | 3,938,000,000 |
| Diluted EPS |  |  | 5.05 | 3.72 | 3.79 | 4.00 | 3.21 | 1.10 | -7.32 | -10.14 | 1.04 | -1.41 |
| Operating cash flow |  |  | 550,139,000 | 390,756,000 | 437,575,000 | 699,000,000 | 714,000,000 | 1,437,000,000 | 397,000,000 | 1,455,000,000 | 1,070,000,000 | 850,000,000 |
| Capital expenditures |  |  | 126,412,000 | 128,973,000 | 170,094,000 | 236,000,000 | 192,000,000 | 393,000,000 | 504,000,000 | 503,000,000 | 463,000,000 | 594,000,000 |
| Dividends paid |  |  | 184,897,000 | 206,118,000 | 230,218,000 | 314,000,000 | 323,000,000 | 667,000,000 | 810,000,000 | 826,000,000 | 514,000,000 | 409,000,000 |
| Share buybacks | 88,203,000 | 122,193,000 | 127,443,000 | 58,069,000 | 15,475,000 | 0.00 | 0.00 |  |  | 0.00 | 0.00 | 38,000,000 |
| Assets |  |  | 4,016,984,000 | 4,598,926,000 | 12,889,395,000 | 13,287,411,000 | 13,555,000,000 | 39,658,000,000 | 35,522,000,000 | 30,978,000,000 | 28,723,000,000 | 25,539,000,000 |
| Stockholders' equity |  |  | 1,626,244,000 | 1,684,202,000 | 6,032,951,000 | 6,217,304,000 | 6,310,000,000 | 21,082,000,000 | 17,655,000,000 | 14,611,000,000 | 13,834,000,000 | 14,154,000,000 |
| Cash and cash equivalents |  |  | 323,992,000 | 368,046,000 | 634,897,000 | 607,000,000 | 650,000,000 | 711,000,000 | 483,000,000 | 703,000,000 | 469,000,000 | 590,000,000 |
| Free cash flow |  |  | 423,727,000 | 261,783,000 | 267,481,000 | 463,000,000 | 522,000,000 | 1,044,000,000 | -107,000,000 | 952,000,000 | 607,000,000 | 256,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  | 13.00% | 8.70% | 8.54% | 8.95% | 7.22% | 2.39% | -14.98% | -22.54% | 2.32% | -3.30% |
| Operating margin |  |  | 17.74% | 16.26% | 14.68% | 12.94% | 11.13% | 5.02% | -10.66% | -18.38% | 6.67% | -3.51% |
| Return on equity |  |  | 24.92% | 17.56% | 5.63% | 7.40% | 5.82% | 1.32% | -10.56% | -17.71% | 1.93% | -2.54% |
| Return on assets |  |  | 10.09% | 6.43% | 2.64% | 3.46% | 2.71% | 0.70% | -5.25% | -8.35% | 0.93% | -1.41% |
| Liabilities / equity |  |  | 1.47 | 1.73 | 1.14 | 1.14 | 1.15 | 0.88 | 1.01 | 1.12 | 1.08 | 0.80 |
| Current ratio |  |  | 1.79 | 2.47 | 2.61 | 1.90 | 1.61 | 1.92 | 1.99 | 1.67 | 1.83 | 1.42 |

## As-reported value updates

5 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/IFF/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-04. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000051253.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | -8.60 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | -0.04 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.11 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 2,820,000,000 | 27,000,000 | 0.10 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 2,703,000,000 | -2,609,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 2,899,000,000 | 61,000,000 | 0.23 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 2,889,000,000 | 172,000,000 | 0.66 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 2,925,000,000 | 60,000,000 | 0.23 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 2,771,000,000 | -46,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 2,843,000,000 | -1,017,000,000 | -3.98 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 2,764,000,000 | 612,000,000 | 2.38 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 2,694,000,000 | 41,000,000 | 0.16 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 2,589,000,000 | 31,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 2,741,000,000 | 170,000,000 | 0.66 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 1,954,000,000 | 51,000,000 | 0.20 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from IFF's latest 10-K: [/company/IFF/business/](/company/IFF/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from IFF's latest 10-K: [/company/IFF/risk-factors/](/company/IFF/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/51253/000005125326000030/iff-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-08-04
Report date: 2026-06-30

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

(UNLESS INDICATED OTHERWISE, DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)

The following management’s discussion and analysis should be read in conjunction with the management’s discussion and analysis of financial condition and results of operations, liquidity and capital resources included in our 2025 Annual Report on Form 10-K, filed on February 27, 2026 with the SEC (“2025 Form 10-K”).

OVERVIEW

Company Background

We are organized into three reportable operating segments: Taste, Health & Biosciences, and Scent.

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.

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.

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.

On May 29, 2026, we announced that we entered into a definitive agreement to divest our Food Ingredients disposal group. We determined that the held for sale and discontinued operations criteria have been met during the second quarter of 2026 and the Company has classified the results of operations of its Food Ingredients disposal group, as well as the results of the SCL disposal group, as discontinued operations. Our Food Ingredients disposal group 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.

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.

Financial Performance Overview of Continuing Operations

Sales

Sales in the second quarter of 2026 increased $35 million, or 2% on a reported basis, to $1.954 billion compared to $1.919 billion in the 2025 period. On a comparable currency neutral basis, sales in the second quarter of 2026 increased 6% compared to the 2025 period. Exchange rate variations had a favorable impact of 2%. 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 divestiture impacts of approximately $107 million from the sale of the Pharma Solutions disposal group, the Nitrocellulose disposal group and Rene Laurent business in France.

Gross Profit

Gross profit in the second quarter of 2026 increased $29 million, or 4%, to $853 million (43.7% of sales) compared to $824 million (42.9% of sales) in the 2025 period. The increase in gross profit was primarily driven by volume increases and productivity gains and the benefit of tariff refunds received and recognized during the quarter offset in part by the change in business portfolio mix due to divestitures.

40

Table of Contents

RESULTS OF CONTINUING OPERATIONS

[[GREPCENT_TABLE]]
[["","Three Months Ended","","","","Six Months Ended"],["","June 30,","","","","June 30,"],["(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)","2026","","2025","","Change","","2026","","2025","","Change"],["Net sales","$","1,954","","","$","1,919","","","2","%","","$","3,860","","","$","3,969","","","(3)","%"],["Cost of sales","1,101","","","1,095","","","1","%","","2,178","","","2,293","","","(5)","%"],["Gross profit","853","","","824","","","4","%","","1,682","","","1,676","","","\u2014","%"],["Research and development (R&D) expenses","170","","","170","","","\u2014","%","","324","","","325","","","\u2014","%"],["Selling and administrative (S&A) expenses","437","","","409","","","7","%","","771","","","799","","","(4)","%"],["Amortization of acquisition-related intangibles","82","","","82","","","\u2014","%","","166","","","162","","","2","%"],["Impairment of goodwill","\u2014","","","\u2014","","","NMF","","\u2014","","","34","","","NMF"],["Restructuring and other charges","6","","","20","","","(70)","%","","10","","","35","","","(71)","%"],["Losses on sale of assets","\u2014","","","1","","","NMF","","\u2014","","","1","","","NMF"],["Operating profit","158","","","142","","","11","%","","411","","","320","","","28","%"],["Interest expense","46","","","61","","","(25)","%","","90","","","132","","","(32)","%"],["Gain on extinguishment of debt","\u2014","","","(488)","","","NMF","","\u2014","","","(488)","","","NMF"],["Losses on business disposals","1","","","111","","","(99)","%","","1","","","111","","","(99)","%"],["Loss on assets classified as held for sale","27","","","\u2014","","","NMF","","27","","","\u2014","","","NMF"],["Other expense, net","20","","","20","","","\u2014","%","","33","","","39","","","(15)","%"],["Income from continuing operations before taxes","64","","","438","","","(85)","%","","260","","","526","","","(51)","%"],["Provision (benefit) for income taxes","31","","","(112)","","","(128)","%","","72","","","(92)","","","(178)","%"],["Net income from continuing operations","$","33","","","$","550","","","(94)","%","","$","188","","","$","618","","","(70)","%"],["Income (loss) from discontinued operations before tax","31","","","66","","","(53)","%","","44","","","(1,016)","","","(104)","%"],["Provision for income taxes from discontinued operations","13","","","17","","","(24)","%","","11","","","20","","","(45)","%"],["Net income (loss) from discontinued operations","18","","","49","","","(63)","%","","33","","","(1,036)","","","(103)","%"],["Net income (loss)","51","","","599","","","(91)","%","","221","","","(418)","","","(153)","%"],["Net income attributable to non-controlling interests from continuing operations","\u2014","","","\u2014","","","NMF","","1","","","1","","","\u2014","%"],["Net income attributable to non-controlling interests from discontinued operations","1","","","\u2014","","","NMF","","1","","","\u2014","","","NMF"],["Net income (loss) attributable to IFF shareholders","$","50","","","$","599","","","(92)","%","","$","219","","","$","(419)","","","(152)","%"],["Income (loss) per share - basic"],["Continuing operations","$","0.13","","","$","2.15","","","(94)","%","","$","0.73","","","$","2.41","","","(70)","%"],["Discontinued operations","0.07","","","0.19","","","(65)","%","","0.13","","","(4.05)","","","(103)","%"],["Net income (loss) per share - basic","$","0.20","","","$","2.34","","","(92)","%","","$","0.86","","","$","(1.64)","","","(152)","%"],["Income (loss) per share - diluted"],["Continuing operations","$","0.13","","","$","2.14","","","(94)","%","","$","0.73","","","$","2.40","","","(70)","%"],["Discontinued operations","0.07","","","0.19","","","(65)","%","","0.12","","","(4.03)","","","(103)","%"],["Net income (loss) per share - diluted","$","0.20","","","$","2.33","","","(91)","%","","$","0.85","","","$","(1.63)","","","(152)","%"],["Gross margin","43.7","%","","42.9","%","","80","bps","","43.6","%","","42.2","%","","140","bps"],["R&D as a percentage of sales","8.7","%","","8.9","%","","(20)","bps","","8.4","%","","8.2","%","","20","bps"],["S&A as a percentage of sales","22.4","%","","21.3","%","","110","bps","","20.0","%","","20.1","%","","(10)","bps"],["Operating margin","8.1","%","","7.4","%","","70","bps","","10.6","%","","8.1","%","","250","bps"],["Effective tax rate","48.4","%","","(25.6)","%","","NMF","","27.7","%","","(17.5)","%","","NMF"],["Segment net sales"],["Taste","$","688","","","$","654","","","5","%","","$","1,368","","","$","1,304","","","5","%"],["Health & Biosciences","601","","","559","","","8","%","","1,176","","","1,079","","","9","%"],["Scent","665","","","603","","","10","%","","1,316","","","1,217","","","8","%"],["Pharma Solutions","\u2014","","","103","","","(100)","%","","\u2014","","","369","","","(100)","%"],["Consolidated","$","1,954","","","$","1,919","","","2","%","","$","3,860","","","$","3,969","","","(3)","%"]]
[[/GREPCENT_TABLE]]
_______________________ 

NMF: Not meaningful

41

Table of Contents

Cost of sales includes the cost of materials and manufacturing expenses. R&D expenses include expenses related to the development of new and improved products and technical product support. S&A expenses include expenses necessary to support our commercial activities and administrative expenses supporting our overall operating activities including compliance with governmental regulations.

SECOND QUARTER 2026 IN COMPARISON TO SECOND QUARTER 2025

Sales performance by segment was as follows:

[[GREPCENT_TABLE]]
[["","% Change in Sales - Second Quarter 2026 vs. Second Quarter 2025"],["","Reported","","Currency Neutral(2)","","Comparable Currency Neutral(1)(2)"],["Taste","5","%","","4","%","","4","%"],["Health & Biosciences","8","%","","5","%","","5","%"],["Scent","10","%","","8","%","","8","%"],["Pharma Solutions","-100","%","","-100","%","","0","%"],["Total","2","%","","0","%","","6","%"]]
[[/GREPCENT_TABLE]]

Comparable currency neutral reported performance by segment was as follows:

[[GREPCENT_TABLE]]
[["","Three Months Ended June 30,"],["","2026","","2025"],["Net Sales"],["Taste","$","679","","","$","650"],["Health & Biosciences","587","","","559"],["Scent","650","","","603"],["Impact of Business Divestitures(1)","\u2014","","","107"],["Impact of Currency Fluctuations(2)","38","","","$","\u2014"],["Total","$","1,954","","","$","1,919"]]
[[/GREPCENT_TABLE]]

_______________________ 

(1)Impact of business divestitures in 2025 includes results of the Rene Laurent business (divested December 1, 2025), and the Pharma Solutions disposal group and Nitrocellulose business (divested May 1, 2025 and May 9, 2025, respectively).

(2)Currency neutral sales are calculated by translating current year invoiced sale amounts at the exchange rates for the corresponding prior year period.

Taste

Taste sales in 2026 increased $34 million, or 5% on a reported basis, to $688 million compared to $654 million in the prior year period. On a comparable currency neutral basis, Taste sales increased 4% in 2026 compared to the prior year period primarily driven by volume and price increases in the Flavors business unit. Exchange rate variations had a favorable impact of 1%. Comparable portfolio results exclude the impact of the divestiture of the Rene

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm
Complete FY 2025 MD&A: /company/IFF/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-27
Report date: 2025-12-31

ITEM 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

(UNLESS INDICATED OTHERWISE, DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)

OVERVIEW

Company Background

In 2025, we were organized into five reportable operating segments: Taste, Food Ingredients, Health & Biosciences, Scent and, until its divestiture in May 2025, Pharma Solutions.

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.

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 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, and mixtures) and inclusion products (such as products combining flavorings with fruit, vegetables and other natural ingredients).

24

Table of Contents

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.

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.

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. 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.

2025 Segment Reorganization

Effective January 1, 2025, our former Nourish segment was restructured into two newly designated operating segments: Taste and Food Ingredients. With additional minor adjustments, our Flavors business, was renamed Taste, and our Ingredients business, was renamed Food Ingredients. Consequently, starting in the first quarter of 2025, our business segments were as follows: Taste, Food Ingredients, Health & Biosciences, Scent, and Pharma Solutions. We divested the Pharma Solutions segment in May 2025.

Financial Measures — Comparable Currency Neutral

Our financial results include the impact of foreign currency exchange rates and business divestitures. We provide currency neutral calculations in this report to remove the impact of foreign currency exchange rates fluctuations and business divestitures. We calculate comparable currency neutral numbers by translating current year transactions amounts at the exchange rates used for the corresponding prior year period and adjust prior year results to exclude businesses divested for the comparable period. We use comparable currency neutral results in our analysis of subsidiary and/or segment performance. We also use comparable currency neutral numbers when analyzing our performance against our competitors. See “Non-GAAP Financial Measures” for further discussion on the comparable currency neutral measure.

Impairment of Goodwill

As a result of the segment reorganization that occurred on January 1, 2025, goodwill related to the Nourish reporting unit was allocated between the Taste and Food Ingredients reporting units. In accordance with ASC 350, we performed a quantitative goodwill impairment test on the former Nourish reporting unit immediately prior to the change, and separately tested goodwill for the new Taste and Food Ingredients reporting units following the reorganization. Based on the results of the impairment testing, we determined that the carrying value of the Food Ingredients reporting unit exceeded its fair value and recorded an impairment charge of $1.153 billion. This charge is reflected in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the year ended December 31, 2025. See Note 12 to the Consolidated Financial Statements for additional information.

During 2024, we determined that the carrying value of the Pharma Solutions disposal group exceeded its fair value and recorded an impairment charge of $64 million in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the year ended December 31, 2024.

During 2023, we determined that the carrying value of the Nourish reporting unit exceeded its fair value and recorded an impairment charge of $2.623 billion in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the year ended December 31, 2023.

See “Critical Accounting Policies and Use of Estimates” and Note 12 to the Consolidated Financial Statements for additional information. For more detailed information about risks related to impairment of goodwill, refer to Item 1A, “Risk Factors” – “Any impairment of our tangible or intangible long-lived assets, including goodwill, may adversely impact our profitability.”

2025 Financial Performance Overview

For a reconciliation between reported and adjusted figures, please refer to the “Non-GAAP Financial Measures” section.

25

Table of Contents

Sales

Sales in 2025 of $10.890 billion decreased 5% compared to sales of $11.484 billion in 2024. On a comparable currency neutral basis, sales in 2025 increased 2% compared to 2024. Exchange rates impact on sales was less than 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. Comparable portfolio results exclude the impact of divestitures of the Flavors & Essences UK business (“F&E UK”), Rene Laurent business in France, Cosmetic Ingredients business, and the Pharma Solutions disposal group and Nitrocellulose business (“change in business portfolio mix due to divestitures”), which was approximately $757 million.

A key factor for commercial success is our inclusion on strategic customers’ core supplier lists, which provides opportunities to expand and win new business. We are on the core supplier lists of a large majority of our global and strategic customers. Additionally, a significant portion of our sales comes from a relatively small number of large multinational customers. In 2025, our 25 largest customers, a majority of which were multinational consumer products companies, collectively accounted for approximately 32% of our sales. Beyond large multinational customers, our customer base continues to be diverse. Based on fiscal-year 2025 sales, we had approximately 20,000 customers. Approximately 69% of sales were from small and mid-sized companies. In 2025, no customer accounted for 10% or more of sales.

Gross Profit

Gross profit in 2025 decreased $186 million, or 5% on a reported basis, to $3.938 billion (36.2% of sales) from $4.124 billion (35.9% of sales) in the 2024 period. The decrease in gross profit was primarily driven by the impact of divestitures of $264 million and the effect of exchange rate variations, offset in part by volume increases and productivity gains.

26

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RESULTS OF OPERATIONS

[[GREPCENT_TABLE]]
[["","Year Ended December 31,","","Change"],["(DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS)","2025","","2024","","2023","","2025 vs. 2024","","2024 vs. 2023"],["Net sales","$","10,890","","","$","11,484","","","$","11,479","","","(5)","%","","\u2014","%"],["Cost of sales","6,952","","","7,360","","","7,798","","","(6)","%","","(6)","%"],["Gross profit","3,938","","","4,124","","","3,681","","","(5)","%","","12","%"],["Research and development (R&D) expenses","694","","","671","","","636","","","3","%","","6","%"],["Selling and administrative (S&A) expenses","1,834","","","1,995","","","1,787","","","(8)","%","","12","%"],["Restructuring and other charges","70","","","29","","","68","","","141","%","","(57)","%"],["Amortization of acquisition-related intangibles","568","","","610","","","680","","","(7)","%","","(10)","%"],["Impairment of goodwill","1,153","","","64","","","2,623","","","NMF","","(98)","%"],["Losses (Gains) on sale of assets","1","","","(11)","","","(3)","","","(109)","%","","267","%"],["Operating (loss) profit","(382)","","","766","","","(2,110)","","","(150)","%","","(136)","%"],["Interest expense","229","","","305","","","380","","","(25)","%","","(20)","%"],["Gain on extinguishment of debt","(488)","","","\u2014","","","\u2014","","","NMF","","NMF"],["Losses (Gains) on business disposals","109","","","(346)","","","23","","","(132)","%","","\u2014","%"],["Loss on assets classified as held for sale","115","","","317","","","\u2014","","","NMF","","\u2014","%"],["Other expense, net","65","","","182","","","5","","","(64)","%","","NMF"],["(Loss) income before taxes","(412)","","","308","","","(2,518)","","","(234)","%","","(112)","%"],["Provision for income taxes","(53)","","","41","","","69","","","(229)","%","","(41)","%"],["Net (loss) income","(359)","","","267","","","(2,587)","","","(234)","%","","(110)","%"],["Net income attributable to non-controlling interest","2","","","4","","","4","","","(50)","%","","\u2014","%"],["Net (loss) income attributable to IFF shareholders","$","(361)","","","$","263","","","$","(2,591)","","","(237)","%","","(110)","%"],["Net income (loss) per share \u2014 basic and diluted","$","(1.41)","","","$","1.04","","","$","(10.14)","","","(236)","%","","(110)","%"],["Gross margin","36.2","%","","35.9","%","","32.1","%","","30","bps","","NMF"],["R&D as a percentage of sales","6.4","%","","5.8","%","","5.5","%","","60","bps","","30","bps"],["S&A as a percentage of sales","16.8","%","","17.4","%","","15.6","%","","(60)","bps","","180","bps"],["Operating margin","(3.5)","%","","6.7","%","","(18.4)","%","","NMF","","NMF"],["Effective tax rate","12.9","%","","13.3","%","","(2.7)","%","","(40)","bps","","NMF"],["Segment net sales"],["Taste","$","2,481","","","$","2,428","","","$","2,303","","","2","%","","5","%"],["Food Ingredients","3,278","","","3,365","","","3,692","","","(3)","%","","(9)","%"],["Health & Biosciences","2,283","","","2,203","","","2,071","","","4","%","","6","%"],["Scent","2,479","","","2,439","","","2,393","","","2","%","","2","%"],["Pharma Solutions","369","","","1,049","","","1,020","","","(65)","%","","3","%"],["Consolidated","$","10,890","","","$","11,484","","","$","11,479","","","(5)","%","","\u2014","%"]]
[[/GREPCENT_TABLE]]

_______________________

NMF: Not meaningful

Co

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/IFF/mda/fy2025/
All MD&A years: /company/IFF/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/IFF/mda/fy2024/): filed 2025-02-28; accession 0000051253-25-000013 (https://www.sec.gov/Archives/edgar/data/51253/000005125325000013/iff-20241231.htm)
- [FY 2023 MD&A](/company/IFF/mda/fy2023/): filed 2024-02-28; accession 0000051253-24-000006 (https://www.sec.gov/Archives/edgar/data/51253/000005125324000006/iff-20231231.htm)
- [FY 2022 MD&A](/company/IFF/mda/fy2022/): filed 2023-02-27; accession 0000051253-23-000009 (https://www.sec.gov/Archives/edgar/data/51253/000005125323000009/iff-20221231.htm)
- [FY 2021 MD&A](/company/IFF/mda/fy2021/): filed 2022-02-28; accession 0000051253-22-000007 (https://www.sec.gov/Archives/edgar/data/51253/000005125322000007/iff-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 2860 Industrial Organic Chemicals) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/IFF.md · JSON record: /company/IFF.json · verified financials: /company/IFF/financials.json / /company/IFF/financials.csv · machine TOC for the whole site: /llms.txt