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].

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 ...