Have you looked into how International Flavors (IFF) performed internationally during the quarter ending March 2025? Considering the widespread global presence of this ingredients producer for food, cosmetics and consumer products industries, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its fin ...

International Flavors & Fragrances Inc. IFF reported better-than-expected earnings for the first quarter, after the closing bell on Tuesday.The company posted quarterly earnings of $1.20 per share which beat the analyst consensus estimate of $1.14 per share. The company reported quarterly sales of $2.84 billion which beat the analyst consensus estimate of $2.83 billion.“IFF delivered solid first quarter results, driven by disciplined execution and broad-based growth across most of our business,” said IFF CE ...

International Flavors & Fragrances Inc. (IFF) reported adjusted earnings of $1.20 per share in first-quarter 2025, beating the Zacks Consensus Estimate of $1.12. The bottom line improved 6% from the year-ago quarter.Including one-time items, the company reported a loss of $3.98 per share against the prior-year quarter’s earnings of 23 cents.International Flavors’ net sales were $2.84 billion in the March-end quarter, decreasing 1.9% year over year. The top line surpassed the Zacks Consensus Estimate of $2.8 ...

Financial Data and Key Metrics Changes - IFF generated approximately $2.8 billion in sales for Q1 2025, representing a 3% comparable currency neutral growth [10] - Adjusted operating EBITDA totaled $578 million for the quarter, a strong 9% increase on a comparable currency neutral basis [10] - Comparable currency neutral adjusted operating EBITDA margin increased more than 120 basis points to 20.3% [10] Business Line Data and Key Metrics Changes - Pharma Solutions delivered $266 million in sales, an 8% year-over-year increase on a comparable currency neutral basis [11] - Taste segment sales were $627 million, a 7% year-over-year increase on a comparable currency neutral basis [13] - Food Ingredients had sales of $796 million, a 4% comparable currency neutral decrease from the prior year [13] - Health and Biosciences segment delivered a 5% increase in comparable currency neutral sales [14] - Scent achieved net sales of $614 million, up 4% year-over-year on a comparable currency neutral basis [14] Market Data and Key Metrics Changes - The company noted that broader macroeconomic dynamics remain challenging, but IFF's portfolio is grounded in resilient essential end markets [20] - The company expects approximately 2% adverse impact on revenue from foreign exchange, down from 4% previously [22] Company Strategy and Development Direction - IFF is focused on strengthening its business through consistent reinvestment in core growth drivers: R&D, commercial, digital, and capacity [20] - The company is maintaining its full-year guidance ranges despite macroeconomic uncertainties [21] - IFF completed the divestiture of Pharma Solutions, which strengthens its capital structure and helps achieve a net debt to credit adjusted EBITDA ratio of below three times [7][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the order book remaining consistent with guidance despite macroeconomic uncertainties [28] - The company is actively working with customers to mitigate impacts of tariff actions and remains disciplined in response to macroeconomic uncertainty [9] - Management acknowledged concerns about potential recessionary pressures but emphasized the resilience of 80% of its portfolio in essential products [29] Other Important Information - Cash flow from operations totaled $127 million year-to-date, with CapEx at $179 million, approximately 6% of sales [15] - Gross debt was approximately $9.3 billion, a decrease of more than $1 billion compared to the year-ago period [17] Q&A Session All Questions and Answers Question: Can you talk us through which areas of the portfolio could potentially be at risk and which parts could be more resilient in a recessionary scenario? - Management indicated that 80% of the portfolio is in essential products, which are resilient, while discretionary areas like fine fragrances may be at risk [29] Question: Can you disclose what you think the gross impact today is on your costs from tariffs? - Management noted a gross exposure of over $100 million for 2025 related to tariffs, primarily from China, but emphasized successful supply chain optimization efforts [35] Question: What were the year-ago comps for flavors and food ingredients? - Management reported that Taste grew 11% last year in Q1, while Food Ingredients declined 4% last year [40] Question: Can you elaborate on the strategic rationale for the joint venture with Chimera? - The joint venture aims to scale enzymatic biomaterials and is expected to start operations by the end of 2027, targeting high-value biodegradable polymers [44][46] Question: What drove volumes lower in protein solutions? - Management indicated that volumes were down due to weaker performance in lower-value areas and production issues in higher-value areas, which are being resolved [55] Question: How do you see the inventory cycle affecting IFF? - Management expressed that they do not believe inventory levels are elevated enough to cause a significant downtick, given the recent destocking period [88]

CAUTIONARY STATEMENT Statements in this presentation release, which are not historical facts or information, are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current assumptions, estimates and expectations including those concerning expected cash flow and availability of capital resources to fund our operations and meet our debt service requirements; our ability to execute on our strategic a ...

For the quarter ended March 2025, International Flavors (IFF) reported revenue of $2.84 billion, down 1.9% over the same period last year. EPS came in at $1.20, compared to $1.13 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.83 billion, representing a surprise of +0.29%. The company delivered an EPS surprise of +7.14%, with the consensus EPS estimate being $1.12. View all Key Company Metrics for International Flavors here>>> Shares of International Flavors have ...

Core Viewpoint - International Flavors (IFF) reported quarterly earnings of $1.20 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and showing an increase from $1.13 per share a year ago [1][2]. Financial Performance - The earnings surprise for the quarter was 7.14%, with the company previously expected to earn $0.78 per share but actually earning $0.97, resulting in a surprise of 24.36% [2]. - Revenues for the quarter reached $2.84 billion, surpassing the Zacks Consensus Estimate by 0.29%, although this is a slight decrease from $2.9 billion in the same quarter last year [3]. - Over the last four quarters, the company has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2][3]. Stock Performance and Outlook - Since the beginning of the year, International Flavors shares have declined by approximately 6.4%, compared to a 3.9% decline in the S&P 500 [4]. - The company's current Zacks Rank is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [7]. Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $1.17 on revenues of $2.88 billion, and for the current fiscal year, it is $4.20 on revenues of $10.96 billion [8]. - The estimate revisions trend for International Flavors is mixed, and changes in these estimates may occur following the recent earnings report [7]. Industry Context - The Chemical - Specialty industry, to which International Flavors belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [9].

Financial Performance - In Q1 2025, the company's sales decreased by $56 million, or 2%, to $2.843 billion compared to $2.899 billion in Q1 2024, with a currency neutral sales increase of 2%[151]. - Gross profit for Q1 2025 increased by $11 million, or 1%, to $1.035 billion, representing 36.4% of sales, up from 35.3% in Q1 2024[152]. - The operating loss for Q1 2025 was $903 million, compared to a profit of $199 million in Q1 2024, primarily due to goodwill impairment[154]. - For the twelve months ended March 31, 2025, the company reported a net loss of $835 million and a credit adjusted EBITDA of $2,207 million[199]. - Total Segment Adjusted Operating EBITDA remained flat at $578 million in Q1 2025, with notable increases in the Taste segment by 12% to $131 million[178][179]. Segment Performance - The Taste segment reported sales of $627 million, a 1% increase on a reported basis, while Food Ingredients sales decreased by 7% to $796 million[156]. - Health & Biosciences sales increased by $11 million, or 2%, to $540 million, while Scent sales decreased by $31 million, or 5%, to $614 million[161][163]. - Pharma Solutions sales increased by $16 million, or 6%, to $266 million, driven by changes in the distribution model and volume growth[164]. Expenses and Charges - R&D expenses decreased by $2 million to $164 million, representing 5.8% of sales in Q1 2025[166]. - Selling and Administrative (S&A) expenses decreased by $29 million to $461 million, representing 16.2% of sales in Q1 2025, compared to $490 million or 16.9% in Q1 2024[167]. - Restructuring and other charges increased to $17 million in Q1 2025 from $3 million in Q1 2024, driven by higher severance costs related to the IFF Productivity Program[168]. - Amortization expenses decreased to $143 million in Q1 2025 from $168 million in Q1 2024, primarily due to the classification of certain intangible assets as "held for sale"[169]. - Interest expense decreased to $71 million in Q1 2025 from $83 million in Q1 2024, attributed to debt repayments made during the previous year[171]. Tax and Debt - The effective tax rate for Q1 2025 was -2.3%, compared to 47.0% in Q1 2024, reflecting significant changes in income tax provisions[154]. - The effective tax rate for Q1 2025 was (2.3)%, a significant decrease from 47.0% in Q1 2024, primarily due to the non-tax deductible goodwill impairment[173]. - As of March 31, 2025, the total debt was $9,319 million, resulting in a net debt of $8,669 million after accounting for cash and cash equivalents of $650 million[200]. - As of March 31, 2025, the net debt to credit adjusted EBITDA ratio was 3.93 to 1.0, compliant with financial covenants[198]. - The company has $8.515 billion in senior unsecured notes, with effective interest rates ranging from 1.22% to 5.12% and maturities from October 1, 2025, to December 1, 2050[201]. Cash Flow - Cash flows provided by operating activities increased to $127 million (4.5% of sales) in Q1 2025, up from $99 million (3.4% of sales) in Q1 2024[187]. - Cash flows used in investing activities rose to $157 million in Q1 2025 from $78 million in the prior year, driven by higher spending on property, plant, and equipment[188]. Strategic Initiatives - The company implemented a reorganization effective January 1, 2025, creating new reportable segments: Taste and Food Ingredients[145]. - The divestiture of the Pharma Solutions business closed on May 1, 2025, with another divestiture expected in Q2 2025[150]. - The company is focused on executing its strategic transformation, including portfolio optimization through divestitures and acquisitions[211]. - The company plans to enhance innovation efforts and drive cost efficiencies to meet consumer trends and demands[211]. - The company is committed to sustainability and addressing increasing regulatory and consumer focus on environmental impact[217]. Risks and Challenges - The company anticipates ongoing inflationary pressures and is implementing pricing actions to mitigate these impacts[211]. - The company faces risks related to supply chain disruptions, geopolitical developments, and economic uncertainties that could affect its operations and financial results[217]. - As of March 31, 2025, the company had cross currency swaps with a liability position of approximately $122 million, which could change by approximately $138 million with a hypothetical 10% fluctuation in the U.S. dollar against the Euro[216].

Financial Performance - Reported net sales for Q1 2025 were $2.84 billion, a decrease of 2% compared to the prior year, while currency neutral sales increased by 3%[4] - Loss before taxes for Q1 2025 was $(994) million, primarily due to a goodwill impairment of $1.15 billion in Food Ingredients[4] - Adjusted operating EBITDA for Q1 2025 was $578 million, with a 9% improvement in currency neutral adjusted operating EBITDA compared to the prior year[4] - The company reported a net loss of $1,017 million in Q1 2025, compared to a net income of $61 million in Q1 2024[29] - The impairment of goodwill in Q1 2025 was $1,153 million, which significantly impacted net income[29] - Cash flows from operations for Q1 2025 were $127 million, while free cash flow totaled $(52) million[4] - Total debt as of March 31, 2025, was $9,319 million, with net debt standing at $8,669 million after accounting for cash and cash equivalents[59] Sales and Segment Performance - Full year 2025 sales guidance is projected to be between $10.6 billion and $10.9 billion, with adjusted operating EBITDA expected to range from $2 billion to $2.15 billion[6] - Comparable currency neutral sales growth is expected to be between 1% to 4% for the full year 2025[7] - The divestiture of the Pharma Solutions business was completed two months ahead of schedule, impacting sales growth by approximately 7%[10] - The Taste segment reported a 1% decrease in sales, but a 7% increase in currency neutral sales, with adjusted operating EBITDA margin at 20.9%[5] - The Pharma Solutions segment saw a 6% increase in reported sales and a 19% increase in currency neutral adjusted operating EBITDA[5] - Q1 2025 Taste segment reported a 1% decrease in sales, with a currency-neutral increase of 7%[67] - Q1 2025 Food Ingredients segment reported a 7% decrease in sales, with a currency-neutral decrease of 4%[67] - Q1 2025 Health & Biosciences segment reported a 2% increase in sales, with a currency-neutral increase of 5%[67] - Q1 2025 Scent segment reported a 5% decrease in sales, with a currency-neutral increase of 4%[67] - Q1 2025 Pharma Solutions segment reported a 6% increase in sales, with a currency-neutral increase of 8%[67] - Consolidated Q1 2025 sales reported a 2% decrease, with a currency-neutral increase of 3%[67] Cash and Assets - Cash and cash equivalents increased to $613 million as of March 31, 2025, from $469 million at the end of 2024[32] - Total current assets rose to $8,633 million as of March 31, 2025, compared to $7,993 million at the end of 2024[32] - The company’s total liabilities decreased to $15,052 million as of March 31, 2025, from $15,193 million at the end of 2024[32] Research and Development - Research and development expenses were $164 million in Q1 2025, a slight decrease of 1% from $166 million in Q1 2024[29] - Research and development expenses totaled $6 million for the quarter, reflecting ongoing investment in innovation[38] Strategic Initiatives - The company is focusing on strategic initiatives and market expansion, including divestitures to optimize its business portfolio[52] - Net debt to credit adjusted EBITDA at the end of Q1 2025 was 3.9x[4] EBITDA and Margins - Adjusted Operating EBITDA for Q1 2025 was $578 million, with a consolidated margin of 20.3%[36] - The segment adjusted operating EBITDA margin for consolidated operations improved to 20.3% from 19.6% year-over-year[63] - Q1 2025 consolidated Operating EBITDA margin improved by 0.4% on a reported basis[67] - Overall, the company experienced a currency-neutral EBITDA increase of 9% in Q1 2025[67] - Currency impact contributed a 4% increase in consolidated sales and a 6% increase in EBITDA[67] - Portfolio impact on consolidated sales was a 1% increase, contributing a 3% increase in EBITDA[67]

Core Viewpoint - Roquette has announced a new organizational structure following the acquisition of IFF Pharma Solutions, aimed at enhancing agility and customer responsiveness for sustainable growth [1][4]. Group 1: Organizational Changes - The company has launched two renewed Business Groups: Health & Pharma Solutions and Nutrition & Bioindustry, each with dedicated teams and assets [3][5]. - Isabelle Bouvier has been appointed as CEO of the Health & Pharma Solutions Business Group, while Pascal Leroy will lead the Nutrition & Bioindustry Business Group [3][9]. - Béatrice Totel has been appointed as CFO of Roquette, succeeding Isabelle Bouvier [11][12]. Group 2: Business Group Focus - The Health & Pharma Solutions Business Group will focus on pharmaceutical excipients, enhancing customer service and product development agility [5][7]. - The Nutrition & Bioindustry Business Group will integrate product lines from IFF, enhancing expertise in food and industrial applications, positioning for growth in food, nutrition, and bio-based markets [8][10]. Group 3: Company Overview - Roquette employs over 11,000 people and operates more than 40 manufacturing sites and 20 R&D centers globally, achieving a turnover of €4.5 billion in 2024 [2][13]. - The company specializes in plant-based ingredients and pharmaceutical solutions, committed to innovation and sustainability [14].