Why did IFF report a large loss for the first nine months of 2025 when the quarter was profitable?

The nine-month results include a $1.153 billion impairment of goodwill related to the Food Ingredients reporting unit, along with $111 million of losses on business disposals and $108 million of losses on assets classified as held for sale. These reported charges produced a loss before taxes of $434 million, while the third quarter itself showed income before taxes of $56 million.

How did IFF's segments perform in the third quarter?

On a comparable, currency neutral basis, Taste sales rose 2%, Health & Biosciences was flat, Scent rose 5% and Food Ingredients fell 3%. Adjusted operating EBITDA margins were 20.2% for Taste, 26.0% for Health & Biosciences, 20.7% for Scent and 12.8% for Food Ingredients.

Is IFF maintaining its 2025 financial guidance?

Yes. The company reiterated full year 2025 sales of $10.6 billion to $10.9 billion and adjusted operating EBITDA of $2 billion to $2.15 billion. It expects comparable currency neutral sales growth at the lower end of 1% to 4% and comparable currency neutral adjusted operating EBITDA growth near the midpoint of 5% to 10%, while noting a more challenging operating environment.

What is the impact of the Pharma Solutions divestiture on 2025 results?

The Pharma Solutions divestiture closed on May 1, 2025, and the full year guidance includes four months of its results. The company states this creates an approximately 7% adverse impact to sales growth and an approximately 8% adverse impact to adjusted operating EBITDA growth in 2025.

What accounting revisions did IFF disclose?

IFF identified income tax-related adjustments, primarily related to transfer pricing errors, correction of deferred tax liabilities on goodwill, and other income tax entries. The company determined these were not material to previously issued statements but would be material to the third quarter of 2025, so it will revise the three and nine months ended September 30, 2024 figures in its Form 10-Q expected by November 10, 2025.

IFF 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 4, 2025. Cited figures are marked; the original filing is the authoritative source.

International Flavors & Fragrances Inc. (NYSE: IFF) reported third quarter 2025 results on November 4, 2025, with reported net sales of $2.69 billion^a, down 8% from the prior-year period, and reported income before taxes of $56 million.

Reported EPS for the quarter was $0.16^b per diluted share, while adjusted EPS excluding amortization was $1.05. On a comparable, currency neutral basis, sales were flat versus the prior year, and comparable currency neutral adjusted operating EBITDA improved 7%, led by productivity gains and favorable net pricing. Adjusted operating EBITDA was $519 million, with an adjusted operating EBITDA margin of 19.3%.

For the first nine months of 2025, reported income before taxes was a loss of $434 million^c, reflecting a $1.15 billion goodwill impairment tied to the Food Ingredients reporting unit, and reported diluted EPS was $(1.53). Adjusted EPS excluding amortization was $3.41 for the nine months. Cash flows from operations were $532 million and free cash flow was $126 million for the period.

Net debt to credit adjusted EBITDA was 2.5x at quarter end. The company reiterated its full year 2025 guidance of sales of $10.6 billion to $10.9 billion^d and adjusted operating EBITDA of $2 billion to $2.15 billion, while noting a more challenging operating environment.

The filing also discloses that the company identified income tax-related errors affecting prior periods, which it determined were not material to previously issued financial statements. It will revise the three and nine months ended September 30, 2024 figures in its Form 10-Q for the quarter ended September 30, 2025, expected to be filed by November 10, 2025.

02—Key points

Key Highlights

Reported net sales were $2.69 billion, down 8% year over year; comparable currency neutral sales were flat, against a strong 9% prior-year comparable.
Scent was the strongest segment, with comparable currency neutral sales up 5% and Fine Fragrance growing 20%; Food Ingredients comparable currency neutral sales fell 3%, though its comparable currency neutral adjusted operating EBITDA rose 24%.
Reported income before taxes was $56 million for the quarter, and reported diluted EPS was $0.16, versus adjusted EPS excluding amortization of $1.05.
Nine-month reported results included a $1.153 billion goodwill impairment related to Food Ingredients, producing a reported loss before taxes of $434 million and reported diluted EPS of $(1.53).
Full year 2025 guidance was reiterated: sales of $10.6 billion to $10.9 billion and adjusted operating EBITDA of $2 billion to $2.15 billion, with comparable currency neutral sales growth expected at the lower end of the 1% to 4% range.
Net debt to credit adjusted EBITDA was 2.5x at September 30, 2025, and total debt on the balance sheet was $6.08 billion, with cash of $621 million.
The company disclosed revisions to 2024 interim figures from income tax errors, to be reflected in its Form 10-Q expected by November 10, 2025.

03—Questions

Frequently Asked Questions

Why did IFF report a large loss for the first nine months of 2025 when the quarter was profitable?
The nine-month results include a $1.153 billion impairment of goodwill related to the Food Ingredients reporting unit, along with $111 million of losses on business disposals and $108 million of losses on assets classified as held for sale. These reported charges produced a loss before taxes of $434 million, while the third quarter itself showed income before taxes of $56 million.
How did IFF's segments perform in the third quarter?
On a comparable, currency neutral basis, Taste sales rose 2%, Health & Biosciences was flat, Scent rose 5% and Food Ingredients fell 3%. Adjusted operating EBITDA margins were 20.2% for Taste, 26.0% for Health & Biosciences, 20.7% for Scent and 12.8% for Food Ingredients.
Is IFF maintaining its 2025 financial guidance?
Yes. The company reiterated full year 2025 sales of $10.6 billion to $10.9 billion and adjusted operating EBITDA of $2 billion to $2.15 billion. It expects comparable currency neutral sales growth at the lower end of 1% to 4% and comparable currency neutral adjusted operating EBITDA growth near the midpoint of 5% to 10%, while noting a more challenging operating environment.
What is the impact of the Pharma Solutions divestiture on 2025 results?
The Pharma Solutions divestiture closed on May 1, 2025, and the full year guidance includes four months of its results. The company states this creates an approximately 7% adverse impact to sales growth and an approximately 8% adverse impact to adjusted operating EBITDA growth in 2025.
What accounting revisions did IFF disclose?
IFF identified income tax-related adjustments, primarily related to transfer pricing errors, correction of deferred tax liabilities on goodwill, and other income tax entries. The company determined these were not material to previously issued statements but would be material to the third quarter of 2025, so it will revise the three and nine months ended September 30, 2024 figures in its Form 10-Q expected by November 10, 2025.

04—Continue

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