01—Abstract
Summary
Summary of the 10-Q filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
International Flavors & Fragrances Inc. (IFF) reported first-quarter 2026 net sales of $2.741 billiona, down from $2.843 billion in the first quarter of 2025, a decrease the filing attributes to exchange rates being favorable by 4% offset by divestitures; on a comparable currency neutral basis, sales increased 3%.
Operating profit was $273 millionb compared with an operating loss of $903 million a year earlier, which included a $1.153 billion goodwill impairment on the Food Ingredients reporting unit. Net income attributable to IFF shareholders was $169 million, or $0.66 per diluted share, versus a net loss of $1.018 billion, or $(3.98) per share, in the prior-year period. Total Adjusted Operating EBITDA was $568 million, and the company reported a 20.7% Adjusted Operating EBITDA margin versus 20.3% a year earlier.
Cash flow from operations was $257 millionc, up from $127 million, and the company completed the divestiture of its Soy Crush, Concentrates & Lecithin business on March 2, 2026 for about $105 million in cash proceeds. Cash and cash equivalents were $562 million at March 31, 2026, and total debt was $5.817 billion. The company repurchased about 481,000 shares for approximately $35 million under its $500 million authorization, and it paid $0.40 per share in quarterly dividends.
The filing reports a net debt to credit adjusted EBITDA ratio of 2.53 to 1.0 and states the company was in compliance with its financial covenants. The filing also describes ongoing legal and regulatory matters, including fragrance-related class actions and antitrust investigations, for which the company says it cannot predict the outcome.
It reports that the DOJ closed its U.S. fragrance antitrust investigation in February 2026, and that new investigations were opened in Singapore and India. The company also recognized no asset for potential IEEPA tariff refunds as of March 31, 2026.
02—Key points
Key Highlights
- Net sales were $2.741 billion, down 4% on a reported basis from $2.843 billion, but up 3% on a comparable currency neutral basis, with favorable exchange rates contributing 4%.
- Operating profit was $273 million versus an operating loss of $903 million in the prior year, which included a $1.153 billion goodwill impairment on Food Ingredients.
- Net income attributable to IFF shareholders was $169 million, or $0.66 per diluted share, compared with a net loss of $1.018 billion, or $(3.98) per share.
- Adjusted Operating EBITDA was $568 million, with a consolidated Adjusted Operating EBITDA margin of 20.7% versus 20.3% a year earlier.
- Operating cash flow was $257 million compared with $127 million, and the Soy Crush, Concentrates & Lecithin divestiture generated about $105 million in cash proceeds.
- Cash and cash equivalents were $562 million and total debt was $5.817 billion at March 31, 2026; the net debt to credit adjusted EBITDA ratio was 2.53 to 1.0.
- The company repurchased about 481,000 shares for approximately $35 million under its $500 million program, and paid $0.40 per share in quarterly dividends.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, International Flavors & Fragrances kept $0.06.
- Revenue$2.74B100.0%
- Cost of revenue−$1.72B62.9%
- Gross profit$1.02B37.1%
- Operating costs−$745.0M27.2%
- Operating income$273.0M10.0%
- Interest, other & tax−$103.0M3.8%
- Net income$170.0M6.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 5, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.74B$2.84B | −3.6% |
| Cost of Revenue | $1.72B$1.81B | −4.7% |
| Gross Profit | $1.02B$1.03B | −1.6% |
| R&D Expenses | $166.00M$164.00M | +1.2% |
| SG&A Expenses | $427.00M$461.00M | −7.4% |
| Operating Income | $273.00M-$903.00M | +130.2% |
| Interest Expense | $44.00M$71.00M | −38.0% |
| Net Income | $170.00M-$1.02B | +116.7% |
| EPS (Basic) | $0.66$-3.98 | +116.6% |
| EPS (Diluted) | $0.66$-3.98 | +116.6% |
| Shares Outstanding (Basic) | 256.00M256.00M | 0.0% |
| Shares Outstanding (Diluted) | 257.00M256.00M | +0.4% |
05—Questions
Frequently Asked Questions
How did IFF's sales and profitability change in the first quarter of 2026?
Reported net sales fell to $2.741 billion from $2.843 billion, a 4% decline driven by divestitures, while comparable currency neutral sales rose 3%. Operating profit was $273 million compared with an operating loss of $903 million in the prior year, which included a $1.153 billion goodwill impairment. Net income attributable to IFF shareholders was $169 million, or $0.66 per diluted share, versus a loss of $(3.98) per share a year earlier.
Which segments drove growth in the quarter?
On a reported basis, Health & Biosciences sales rose 10% to $595 million and Scent rose 6% to $651 million, Taste rose 5% to $656 million, and Food Ingredients rose 5% to $839 million. On a comparable currency neutral basis, Health & Biosciences increased 5%, Food Ingredients 3%, Taste 2%, and Scent 1%. Taste Adjusted Operating EBITDA rose 17% on a reported basis, while Scent Adjusted Operating EBITDA rose 3% reported but fell 2% comparable currency neutral.
How is IFF's liquidity and debt position?
Cash and cash equivalents were $562 million at March 31, 2026, versus $590 million at year-end 2025. Total debt was $5.817 billion, including $1.078 billion of short-term debt, and commercial paper outstanding was $154 million. The company had no borrowings under its $2 billion Revolving Credit Facility, and its net debt to credit adjusted EBITDA ratio was 2.53 to 1.0, which the filing says is in compliance with covenants.
What capital allocation actions did IFF take?
IFF paid $102 million in dividends, or $0.40 per share, and repurchased about 481,000 shares for approximately $35 million under its $500 million program, which began October 1, 2025, leaving about $427 million available. Net commercial paper repayments were $160 million. The company also received $198 million in net proceeds from business disposals, including $105 million from the Soy Crush, Concentrates & Lecithin divestiture and $93 million from an earnout related to the Pharma Solutions sale.
What legal and regulatory matters could affect IFF?
The filing describes ongoing civil class actions related to fragrance products in the United States, Canada and other jurisdictions, and it notes that the company settled several of these claims, including with indirect purchaser and end-user plaintiffs in March and April 2026. The U.S. Department of Justice closed its fragrance antitrust investigation in February 2026, while investigations by the European Commission, UK CMA, Swiss and Mexican authorities, and new probes in Singapore and India remain. IFF says it cannot predict their outcomes, which could have a material adverse effect on results.
06—Continue