Core Viewpoint - International Flavors & Fragrances Inc. (IFF) is expected to report a decline in sales and earnings for the first quarter of 2025, with a consensus estimate of $2.83 billion in sales, reflecting a 2.2% decrease year-over-year, and earnings per share estimated at $1.12, indicating a 0.9% dip from the previous year [1][2]. Financial Estimates - The consensus estimate for IFF's sales is $2.83 billion, down 2.2% from the prior year [1]. - The earnings estimate is $1.12 per share, which has increased by 2.7% over the past 60 days but shows a year-over-year decline of 0.9% [2]. - The earnings estimates for upcoming quarters are as follows: Q2 at $1.17, F1 at $4.20, and F2 at $4.54 [2]. Earnings Surprise History - IFF has beaten the Zacks Consensus Estimates in three of the last four quarters, with an average surprise of 17.9% [3][4]. Earnings ESP and Zacks Rank - IFF has an Earnings ESP of +1.05%, indicating a potential earnings beat [5]. - The company currently holds a Zacks Rank of 3, suggesting a hold position [6]. Performance Factors - IFF is experiencing volume growth across its business segments, which is expected to positively impact sales performance [7]. - The company is facing high raw material costs and additional expenses related to labor, shipping, and cleaning, which may negatively affect margins despite cost reduction efforts [8]. Segment Projections - The Nourish segment is projected to see a 3.6% decline in sales to $1.44 billion, with operating EBITDA expected to fall 2.1% to $211 million [9]. - The Scent segment's sales are estimated to decrease by 6% to $606 million, with operating EBITDA projected to decline 15.9% to $132 million [10]. - The Health & Biosciences segment is expected to report sales of $532 million, reflecting a slight increase of 0.2%, with operating EBITDA anticipated to rise 1.7% to $162 million [11]. Recent Developments - IFF completed the divestiture of its Pharma Solutions business to Roquette on May 1, 2025, which is expected to help the company achieve its target net debt to credit-adjusted EBITDA ratio of below 3.0X [12]. Stock Performance - Over the past year, IFF shares have decreased by 8%, contrasting with a 0.4% growth in the industry [13].

Core Insights - Analysts expect International Flavors (IFF) to report quarterly earnings of $1.12 per share, reflecting a year-over-year decline of 0.9% and revenues of $2.83 billion, down 2.2% from the previous year [1] Earnings Projections - Revisions to earnings projections are crucial for predicting investor behavior, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [2] Key Metrics Estimates - Analysts project 'Net Sales- Nourish' to reach $1.45 billion, indicating a decline of 2.8% from the prior-year quarter [4] - The consensus estimate for 'Net Sales- Scent' is $609.74 million, reflecting a decrease of 5.5% year-over-year [4] - 'Net Sales- Pharma Solutions' is expected to be $233.97 million, showing a year-over-year increase of 3.1% [4] - 'Net Sales- Health & Biosciences' is forecasted at $532.05 million, indicating a slight increase of 0.2% from the previous year [5] Adjusted Operating EBITDA Estimates - 'Adjusted Operating EBITDA- Nourish' is projected to be $216.88 million, compared to $216 million in the same quarter last year [5] - 'Adjusted Operating EBITDA- Pharma Solutions' is expected to be $45.50 million, slightly down from $46 million year-over-year [6] - 'Adjusted Operating EBITDA- Scent' is estimated at $140.59 million, down from $157 million in the previous year [6] - 'Adjusted Operating EBITDA- Health & Biosciences' is projected to reach $159.94 million, compared to $159 million in the same quarter last year [7] Stock Performance - Over the past month, IFF shares have recorded a return of -0.2%, compared to a -0.7% change in the Zacks S&P 500 composite, indicating that IFF is likely to perform in line with the overall market [8]

Financial Data and Key Metrics Changes - The meeting confirmed the election of directors and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year 2025 [17][18] - The compensation of named executive officers for 2024 was approved on an advisory basis, indicating a focus on aligning executive pay with performance [13][18] Business Line Data and Key Metrics Changes - No specific data on business line performance was provided during the meeting [0] Market Data and Key Metrics Changes - No specific market data or metrics were discussed during the meeting [0] Company Strategy and Development Direction and Industry Competition - The company continues to emphasize good corporate governance practices by submitting the selection of its independent accountant for shareholder ratification [12] - The board's recommendation for the election of directors and approval of executive compensation reflects a commitment to maintaining strong leadership and accountability [11][13] Management's Comments on Operating Environment and Future Outlook - Management did not provide specific comments on the operating environment or future outlook during the meeting [0] Other Important Information - The meeting was conducted virtually to enhance accessibility and communication with shareholders [2][3] - The chair expressed gratitude to shareholders for their participation and support, highlighting the importance of shareholder engagement [19] Q&A Session Summary Question: Does the compensation committee use the compensation actually paid total compensation figure in setting the CEO target total compensation award amount for the upcoming year? - The compensation committee considers the compensation actually paid as a key figure and benchmarks against a peer set of 16 companies, targeting the median to the seventy-fifth percentile for annual compensation [22][24] Question: Why does the total compensation amount differ from the compensation actually paid? - The difference arises because the CEO's compensation is largely variable, depending on performance levers in the compensation program, which can lead to variations in actual payouts each year [24]

Company Overview - International Flavors (IFF) is expected to report a year-over-year decline in earnings and revenues for the quarter ended March 2025, with earnings projected at $1.11 per share, down 1.8%, and revenues at $2.83 billion, down 2.3% [3][1]. Earnings Expectations - The stock price may increase if actual earnings exceed expectations in the upcoming report, scheduled for May 6 [2]. - The consensus EPS estimate has been revised 2.38% higher in the last 30 days, indicating a more optimistic outlook from analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP for International Flavors is +0.59%, suggesting a likelihood of beating the consensus EPS estimate [11][10]. - The company has a Zacks Rank of 3, which indicates a hold position, but the positive Earnings ESP suggests potential for an earnings beat [11]. Historical Performance - In the last reported quarter, International Flavors had an earnings surprise of +24.36%, reporting $0.97 per share against an expectation of $0.78 [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Industry Context - Linde, a peer in the Zacks Chemical - Specialty industry, is expected to report earnings of $3.93 per share, reflecting a year-over-year increase of 4.8%, with revenues projected at $8.26 billion, up 2% [17]. - Linde's consensus EPS estimate has been revised 0.1% higher, and it has a positive Earnings ESP of 0.30%, indicating a likely earnings beat [18].

International Flavors & Fragrances Inc. (IFF) announced plans to consolidate the majority of its business operations in Mexico at a new site within the Tecnoparque business complex in Mexico City. This move will boost the company’s ability to meet customer demands, facilitate product market entry and enhance sustainability.IFF’s Move to Tecnoparque to Boost Regional GrowthInternational Flavors' new facility in Tecnoparque will feature labs for product creation, design, testing, R&D and business services, as ...

International Flavors (IFF) shares ended the last trading session 9.2% higher at $72.97. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 16.3% loss over the past four weeks.International Flavors’ shares got a boost yesterday after U.S President Trump announced a 90-day pause on certain tariffs for most countries (except China). IFF’s shares also gained since the company announced that it partnered with Florida Poly ...

International Flavors & Fragrances Inc. (IFF) shares have lost 24.4% in the past six months compared with the industry’s 8.3% decline. This mainly reflects the impacts of lower volumes in the Food Ingredients business and higher manufacturing expenses. Supply-chain challenges and the effects of the Pharma segment divestiture have also impacted IFF’s results.  Image Source: Zacks Investment Research Low Volume, High Costs Act as WoesInternational Flavors continues to incur high raw material costs and additio ...

A month has gone by since the last earnings report for International Flavors (IFF) . Shares have lost about 1.8% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is International Flavors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Sin ...

Financial Performance - In 2024, total sales were $11.484 billion, remaining flat compared to $11.479 billion in 2023, but increased by 3% on a currency neutral basis [240]. - Gross profit in 2024 increased by $443 million, or 12%, to $4.124 billion, representing 35.9% of sales, compared to 32.1% in 2023 [242]. - Total net sales for 2024 were $11.484 billion, a slight increase from $11.479 billion in 2023, with a comparable portfolio excluding divestitures showing a growth of approximately $244 million [246]. - Segment Adjusted Operating EBITDA increased to $2.205 billion in 2024, up from $1.980 billion in 2023, with a total margin of 19.2% compared to 17.2% in the previous year [267]. Sales by Segment - The Nourish segment experienced a 3% decline in sales, while the Health & Biosciences segment saw a 6% increase in reported sales [245]. - Nourish segment sales decreased by $189 million, or 3%, to $5.871 billion in 2024, while currency neutral sales increased by 4% driven by volume increases across all business units [247]. - Health & Biosciences segment sales increased by $131 million, or 6%, to $2.212 billion in 2024, with an 8% increase on a currency neutral basis due to volume and price increases [248]. - Scent segment sales rose by $47 million, or 2%, to $2.440 billion in 2024, with a 7% increase on a currency neutral basis driven by price and volume increases [249]. - Pharma Solutions segment sales increased by $16 million, or 2%, to $961 million in 2024, maintaining a 2% increase on a currency neutral basis [251]. Expenses - Research and development (R&D) expenses increased by 6% to $671 million in 2024, representing 5.8% of sales [244]. - Selling and Administrative (S&A) expenses rose by $208 million to $1.995 billion, representing 17.4% of sales in 2024, up from 15.6% in 2023 [254]. - Cost of sales decreased by $438 million to $7.360 billion, representing 64.1% of sales in 2024, down from 67.9% in 2023 [252]. Impairment Charges - The company recorded an impairment charge of $64 million for the Pharma Solutions segment in 2024, significantly lower than the $2.623 billion impairment in the Nourish segment in 2023 [230][231]. - The Company recorded a non-cash goodwill impairment charge of $64 million for the Pharma Solutions disposal group during the quarter ended June 30, 2024 [316]. - A goodwill impairment charge of $2.623 billion was recorded for the Nourish reporting unit for the year ended December 31, 2023 [319]. - The Company anticipates a material impairment charge in the range of $1.0 billion to $1.5 billion in the first quarter of fiscal 2025 due to the restructuring of the Nourish segment into two operating segments: Taste and Food Ingredients [321]. Taxation - The effective tax rate for 2024 was 11.2%, compared to a negative rate of 1.8% in 2023 [244]. - The effective tax rate increased to 11.2% in 2024 from (1.8)% in 2023, primarily due to an increase in pre-tax income and changes in the mix of earnings [262]. Cash Flows - Cash flows from operating activities in 2024 were $1.070 billion, or 9.3% of sales, down from $1.439 billion, or 12.5% of sales in 2023 [276]. - Cash flows from investing activities decreased to $326 million in 2024 from $574 million in 2023, primarily due to lower net proceeds from business divestitures [277]. - Cash flows used in financing activities were $1.606 billion in 2024, a decrease from $1.851 billion in 2023, mainly due to lower dividends paid [279]. - Dividends paid totaled $514 million in 2024, down from $826 million in 2023, with cash dividend declared per share at $1.60 compared to $3.24 in 2023 [280]. Debt and Capital Management - As of December 31, 2024, the net debt to credit adjusted EBITDA ratio was 3.84 to 1.0, below the covenant limit [287]. - Total debt as of December 31, 2024, was approximately $9.005 billion, with net debt at $8.534 billion [290]. - The company had $8.478 billion in senior unsecured notes outstanding, with effective interest rates ranging from 1.22% to 5.12% [291]. - The company had no outstanding borrowings under its $2 billion Revolving Credit Facility as of December 31, 2024, with available capacity of $922 million [286]. - The company anticipates capital spending in 2025 to be approximately 6% of sales [278]. - The company plans to prioritize capital investment in its businesses to support strategic long-term plans while maintaining its investment grade rating [281]. Foreign Currency and Risk Management - The company actively monitors foreign currency exposures and employs various techniques, including hedging activities, to mitigate the impact of exchange rate fluctuations [335]. - As of December 31, 2024, the estimated fair value of foreign currency forward contracts would change by approximately $475 million with a hypothetical 10% change in applicable exchange rates [337]. - The aggregate fair value of cross currency swaps was $90 million as of December 31, 2024, with an estimated change of approximately $143 million based on a hypothetical 10% change in the value of the U.S. dollar against the Euro [338]. - The fair value of EUR fixed rate debt was $813 million as of December 31, 2024, with an estimated change of approximately $90 million based on a hypothetical 10% change in foreign exchange rates [339]. - The fair value of USD fixed rate debt was $6.338 billion as of December 31, 2024, with an estimated change of approximately $634 million based on a hypothetical 10% change in interest rates [339]. - The total amount of outstanding debt subject to interest rate fluctuations was $413 million as of December 31, 2024, with an estimated annual interest expense change of approximately $4 million based on a hypothetical 1% change in interest rates [340]. - The company has established a centralized reporting system to evaluate the effects of changes in interest rates and currency exchange rates [336]. - The company enters into foreign currency forward contracts to manage exchange rate risk related to foreign currency denominated monetary assets and liabilities [337]. - The company does not generally use commodity financial instruments to hedge commodity prices, except for soy and natural gas [341]. - The company utilizes statistical analyses of cash flows and sensitivity analysis as part of its risk management procedures [336].

International Flavors & Fragrances Inc. (NYSE:IFF) Q4 2024 Earnings Call Transcript February 19, 2025 9:00 AM ET Company Participants Michael Bender - Director, Investor Relations Erik Fyrwald - Chief Executive Officer Michael DeVeau - EVP, Chief Financial Officer Conference Call Participants Kristen Owen - Oppenheimer Josh Spector - UBS Nicola Tang - BNP Paribas Emily Fusco - Deutsche Bank Eric Zhang - Citi Lisa Neve - Morgan Stanley Steve Byrne - Bank of America John Roberts - Mizuho Mike Sison - Wells Fa ...