How did IFF perform in the second quarter of 2025?

Reported net sales were $2.76 billion, down 4% versus the prior-year period, while comparable currency neutral sales rose 3%. Adjusted operating EBITDA was $552 million with a 20.0% margin, and comparable currency neutral adjusted operating EBITDA improved 6%.

Why does IFF show a large loss for the first six months but positive results for the quarter?

For the six months ended June 30, 2025, the company recorded a $1.153 billion impairment of goodwill, producing a reported loss before taxes of $(460) million and reported diluted EPS of $(1.59). The second quarter benefited from a $488 million gain on extinguishment of debt, which lifted reported income before taxes to $534 million.

Did IFF change its full-year 2025 outlook?

No. The company reiterated its full-year 2025 guidance, including sales of $10.6–$10.9 billion and adjusted operating EBITDA of $2.0–$2.15 billion. It expects 1% to 4% comparable currency neutral sales growth and 5% to 10% comparable currency neutral adjusted operating EBITDA growth, while noting more challenging second-half market conditions.

What is the new $500 million share repurchase program?

The Board authorized repurchases of up to $500 million of common stock with no specified term or termination date. Repurchases may be made through privately negotiated transactions, open market transactions including Rule 10b5-1 plans, block trades, or a combination. The company plans to fund them from available cash and operating cash flow.

What is IFF doing with its Food Ingredients business?

IFF entered into a definitive agreement to sell its soy crush, concentrates and lecithin business to Bunge, expected to close by year-end 2025. The business generated approximately $240 million of revenue in 2024. The company is also evaluating strategic alternatives for its Food Ingredients segment, and financial terms of the sale were not disclosed.

IFF 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 5, 2025. Cited figures are marked; the original filing is the authoritative source.

International Flavors & Fragrances Inc. (NYSE: IFF) furnished a press release reporting second quarter 2025 results for the quarter ended June 30, 2025.

Reported net sales were $2.76 billion^a, down 4% from the prior-year period, while currency neutral sales on a comparable basis rose 3%. Reported income before taxes was $534 million and reported diluted EPS was $2.38, which includes a $488 million gain on extinguishment of debt. Adjusted operating EBITDA was $552 million, with a 20.0% margin, and adjusted EPS excluding amortization was $1.15.

For the first six months, reported loss before taxes was $(460) million, reflecting a $1.15 billion^b goodwill impairment, and reported diluted EPS was $(1.59). Net debt to credit adjusted EBITDA was 2.5x at quarter end. The company reaffirmed its full-year 2025 guidance of sales between $10.6 billion and $10.9 billion and adjusted operating EBITDA between $2.0 billion and $2.15 billion.

It expects comparable currency neutral sales growth of 1% to 4% and comparable currency neutral adjusted operating EBITDA growth of 5% to 10%, though management said market conditions are expected to be more challenging in the second half. Management said it expects growth to moderate in the second half. The company also announced a new share repurchase program of up to $500 million^c with no specified term, and a definitive agreement to sell its soy crush, concentrates and lecithin business to Bunge, expected to close by year-end 2025.

That business generated approximately $240 million^d of revenue in 2024. The company is also evaluating strategic alternatives for its Food Ingredients segment. Financial terms of the Bunge sale were not disclosed.

02—Key points

Key Highlights

Q2 2025 reported net sales of $2.76 billion, down 4% versus the prior-year period; comparable currency neutral sales up 3%.
Q2 2025 reported diluted EPS of $2.38, including a $488 million gain on extinguishment of debt; adjusted EPS excluding amortization of $1.15.
Six-month reported loss before taxes of $(460) million, driven by a $1.153 billion goodwill impairment; reported diluted EPS of $(1.59).
Net debt to credit adjusted EBITDA reduced to 2.5x at June 30, 2025; total debt was $6.21 billion versus $5.4 billion of net debt after $816 million of cash.
Full-year 2025 guidance reaffirmed: sales of $10.6–$10.9 billion and adjusted operating EBITDA of $2.0–$2.15 billion, with management expecting growth to moderate in the second half.
New $500 million share repurchase authorization with no specified term, to be funded from available cash and operating cash flow.
Definitive agreement to sell the soy crush, concentrates and lecithin business to Bunge (about $240 million of 2024 revenue, roughly 250 employees), expected to close by year-end 2025; Food Ingredients strategic alternatives under evaluation.

03—Questions

Frequently Asked Questions

How did IFF perform in the second quarter of 2025?
Reported net sales were $2.76 billion, down 4% versus the prior-year period, while comparable currency neutral sales rose 3%. Adjusted operating EBITDA was $552 million with a 20.0% margin, and comparable currency neutral adjusted operating EBITDA improved 6%.
Why does IFF show a large loss for the first six months but positive results for the quarter?
For the six months ended June 30, 2025, the company recorded a $1.153 billion impairment of goodwill, producing a reported loss before taxes of $(460) million and reported diluted EPS of $(1.59). The second quarter benefited from a $488 million gain on extinguishment of debt, which lifted reported income before taxes to $534 million.
Did IFF change its full-year 2025 outlook?
No. The company reiterated its full-year 2025 guidance, including sales of $10.6–$10.9 billion and adjusted operating EBITDA of $2.0–$2.15 billion. It expects 1% to 4% comparable currency neutral sales growth and 5% to 10% comparable currency neutral adjusted operating EBITDA growth, while noting more challenging second-half market conditions.
What is the new $500 million share repurchase program?
The Board authorized repurchases of up to $500 million of common stock with no specified term or termination date. Repurchases may be made through privately negotiated transactions, open market transactions including Rule 10b5-1 plans, block trades, or a combination. The company plans to fund them from available cash and operating cash flow.
What is IFF doing with its Food Ingredients business?
IFF entered into a definitive agreement to sell its soy crush, concentrates and lecithin business to Bunge, expected to close by year-end 2025. The business generated approximately $240 million of revenue in 2024. The company is also evaluating strategic alternatives for its Food Ingredients segment, and financial terms of the sale were not disclosed.

04—Continue

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