Core Insights - International Flavors (IFF) reported revenue of $2.84 billion for the quarter ended March 2025, reflecting a year-over-year decline of 1.9% [1] - The company's EPS was $1.20, an increase from $1.13 in the same quarter last year, surpassing the consensus estimate of $1.12 by 7.14% [1] Revenue Performance - Health & Biosciences net sales reached $540 million, exceeding the average estimate of $532.05 million, marking a year-over-year increase of 1.7% [4] - Scent segment net sales were $614 million, slightly above the estimated $609.74 million, but down 4.8% compared to the previous year [4] - Pharma Solutions net sales amounted to $266 million, significantly surpassing the estimated $233.97 million, with a year-over-year growth of 17.2% [4] EBITDA Analysis - Adjusted Operating EBITDA for Health & Biosciences was $138 million, below the average estimate of $159.94 million [4] - Pharma Solutions reported an Adjusted Operating EBITDA of $54 million, exceeding the estimated $45.50 million [4] - Scent's Adjusted Operating EBITDA was $144 million, slightly above the average estimate of $140.59 million [4] Stock Performance - IFF shares have returned +11.9% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

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].

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].

Core Insights - International Flavors & Fragrances Inc. (IFF) plans to consolidate its business operations in Mexico at a new site within the Tecnoparque business complex, enhancing customer demand fulfillment, product market entry, and sustainability efforts [1][3] Group 1: Strategic Move - The new facility in Tecnoparque will include labs for product creation, design, testing, R&D, and business services, along with collaborative spaces for immersive experiences and co-creation with customers [2] - This strategic consolidation will leverage Mexico's rich culture and support business development across Latin America and the Caribbean, aligning with IFF's global growth strategy [3] Group 2: Facility Details - The consolidation will start with the Global Business Services Center, expected to be completed by 2026, and will encompass 50,000 square meters of green space [4] - The new facilities will feature a sophisticated water-management system and responsible waste management, generating enough solar power to meet energy demands [4] Group 3: Employment Impact - The consolidation is projected to create 650 job opportunities across various business segments, making it one of IFF's largest office locations [5] Group 4: Stock Performance - IFF's stock has declined by 9.8% over the past year, compared to a 4.8% decline in the industry [6]