01—Abstract
Summary
Summary of the 8-K filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
International Flavors & Fragrances Inc. (NYSE: IFF) reported first quarter 2026 results for the quarter ended March 31, 2026, in a press release furnished as Exhibit 99.1 under Item 2.02.
Reported net sales were $2.74 billiona, down 4% versus the prior-year period, though on a comparable basis currency neutral sales increased 3%. Reported income before taxes was $209 million and reported EPS was $0.66. Adjusted operating EBITDA was $568 million, a 20.7% margin, and adjusted EPS excluding amortization was $1.25 per diluted share.
Cash flow from operations was $257 millionb, up $130 million year-over-year, and free cash flow was $92 million. Management said volume growth was delivered in all four segments and that the company reaffirmed its full-year 2026 guidance of sales of $10.5 billion to $10.8 billion and adjusted operating EBITDA of $2.05 billion to $2.15 billion. The guidance now includes two months of Soy Crush, Concentrates, and Lecithin results, reflecting a divestiture that closed on March 2, 2026, rather than the previously expected April 1, 2026 closing.
Management described the operating environment as unsettled and said it is running a disciplined sale process for the Food Ingredients business. On a segment basis, Taste and Health & Biosciences posted the strongest adjusted operating EBITDA growth on a comparable currency neutral basis, while Scent declined (2)%. Net debt to credit adjusted EBITDA was 2.5xc at quarter end, and total debt to trailing twelve-month net income was 7.2x.
02—Key points
Key Highlights
- Reported net sales of $2.74 billion, down 4% year-over-year; comparable currency neutral sales up 3%, with broad-based growth across all businesses.
- Reported EPS of $0.66 versus a loss of $(3.98) in the prior-year quarter, which included a $1,153 million goodwill impairment; adjusted EPS excluding amortization was $1.25 versus $1.20.
- Adjusted operating EBITDA of $568 million at a 20.7% margin; comparable currency neutral adjusted operating EBITDA up 8%, led by volume growth and productivity gains.
- Operating cash flow of $257 million, up $130 million year-over-year; free cash flow of $92 million, up $144 million year-over-year.
- Full-year 2026 guidance reaffirmed: sales of $10.5 billion to $10.8 billion and adjusted operating EBITDA of $2.05 billion to $2.15 billion, with comparable currency neutral sales growth of 1% to 4%.
- Food Ingredients sale process is ongoing; the Soy Crush, Concentrates, and Lecithin divestiture closed on March 2, 2026, and losses on business disposals were $7 million in the quarter.
- Leverage at quarter end: net debt to credit adjusted EBITDA of 2.5x and total debt of $5,850 million against cash of $562 million.
03—Questions
Frequently Asked Questions
Did IFF meet its earnings expectations and change its outlook?
The filing does not state analyst consensus expectations. IFF reaffirmed its full-year 2026 guidance for sales of $10.5 billion to $10.8 billion and adjusted operating EBITDA of $2.05 billion to $2.15 billion, and said the strong first quarter derisks the balance of the year.
What is the status of the Food Ingredients business?
IFF said it is running a disciplined sale process for Food Ingredients to maximize shareholder value. The Soy Crush, Concentrates, and Lecithin business was divested on March 2, 2026, and guidance now includes two months of its results.
Why did reported sales decline while underlying sales grew?
Reported net sales fell 4% to $2.74 billion, but comparable currency neutral sales rose 3%. The filing attributes the gap to divestitures, with comparable results excluding divestiture impacts, and to currency effects, which reduced reported sales by roughly 4% in the currency impact table.
How did the segments perform?
On a comparable currency neutral basis, Taste adjusted operating EBITDA rose 18%, Health & Biosciences rose 7%, Food Ingredients rose 12%, and Scent declined (2)%. Scent volume growth and productivity gains were more than offset by unfavorable price to input cost.
What do the GAAP and adjusted results show about profitability?
Reported income before taxes was $209 million, compared with a $994 million loss in the prior-year quarter that included a $1,153 million goodwill impairment. Adjusted income before taxes was $265 million, and adjusted EPS was $0.83 on a diluted basis.
04—Continue