01—Abstract
Summary
Summary of the 8-K filed May 6, 2025. Cited figures are marked; the original filing is the authoritative source.
On May 6, 2025, International Flavors & Fragrances Inc. (IFF) furnished under Item 7.01 recast unaudited historical segment information for fiscal 2024, reflecting a reorganization effective January 1, 2025.
The reorganization changed how the Chief Operating Decision Maker allocates resources and assesses performance. The former Nourish segment is now two reportable segments, Taste and Food Ingredients, and the company's reportable segments as of Q1 2025 are Taste, Food Ingredients, Health & Biosciences, Scent, and Pharma Solutions. Corporate cost allocations were also adjusted.
The filing states that it does not restate previously filed financial statements. The recast fiscal 2024 figures show net sales of $11,484 milliona and Adjusted Operating EBITDA of $2,205 million, a 19.2% Adjusted Operating EBITDA margin. By segment, full-year 2024 net sales were $2,428 million for Taste, $3,365 million for Food Ingredients, $2,203 million for Health & Biosciences, $2,439 million for Scent, and $1,049 million for Pharma Solutions.
Adjusted Operating EBITDA margins were 18.9%b for Taste, 12.1% for Food Ingredients, 26.2% for Health & Biosciences, 22.3% for Scent, and 20.5% for Pharma Solutions. Full-year 2024 sales growth on a comparable basis was 3% in total, and 6% on a currency neutral basis, with reported sales flat at 0%.
Taste grew 5%c reported, Food Ingredients declined 9% reported, Health & Biosciences grew 6%, Scent grew 2%, and Pharma Solutions grew 3%. The company notes it has not yet presented interim segment expense disclosures under ASU 2023-07, and investors should read the recast data alongside the 2024 Form 10-K and 10-Q filings.
02—Key points
Key Highlights
- Effective January 1, 2025, IFF split the former Nourish segment into two new reportable segments, Taste and Food Ingredients, and began reporting five segments from Q1 2025.
- Recast fiscal 2024 net sales were $11,484 million, with Adjusted Operating EBITDA of $2,205 million and a 19.2% margin.
- Scent was the largest segment by fiscal 2024 net sales at $2,439 million, followed closely by Food Ingredients at $3,365 million; Food Ingredients was the largest by sales overall at $3,365 million.
- Health & Biosciences posted the highest recast Adjusted Operating EBITDA margin at 26.2%, while Food Ingredients had the lowest at 12.1%.
- Full-year 2024 total sales were flat on a reported basis at 0%, with 3% comparable and 6% currency neutral growth.
- Food Ingredients reported sales declined 9% for fiscal 2024, while Taste grew 5% and Health & Biosciences grew 6% on a reported basis.
- Corporate cost allocations were adjusted, and the filing states it does not restate previously filed financial statements; the information is furnished under Item 7.01 and not deemed filed under the Exchange Act.
03—Questions
Frequently Asked Questions
Why did IFF change its reportable segments?
The company reorganized its internal structure effective January 1, 2025, which changed how the Chief Operating Decision Maker allocates resources and assesses financial performance. The former Nourish segment was separated into Taste and Food Ingredients, and immaterial business transfers occurred between Food Ingredients and Pharma Solutions and between Health & Biosciences and Taste.
What does the Taste segment include?
The Taste segment, formerly the Flavors business within Nourish, includes flavor compounds and natural taste solutions used in food and beverage applications. Its recast fiscal 2024 net sales were $2,428 million and Adjusted Operating EBITDA was $460 million.
How did the recast segments perform in fiscal 2024?
Recast fiscal 2024 net sales were $2,428 million for Taste, $3,365 million for Food Ingredients, $2,203 million for Health & Biosciences, $2,439 million for Scent, and $1,049 million for Pharma Solutions. Adjusted Operating EBITDA was $460 million, $408 million, $577 million, $545 million, and $215 million, respectively.
Does this filing restate prior financial statements?
No. The filing states that the Form 8-K and Exhibit 99.1 do not restate previously filed financial statements and do not reflect subsequent events or adjustments other than those necessary for the segment reorganization and related changes. The recast fiscal 2024 information is unaudited and should be read together with the 2024 Form 10-K and Form 10-Qs.
Has IFF adopted the new segment expense disclosure standard for interim periods?
The company states it has not yet presented interim segment expense disclosures under ASU 2023-07, Segment Reporting (Topic 280), which becomes effective for interim periods within fiscal years beginning after December 15, 2024.
04—Continue