International Flavors & Fragrances(US:IFF)2025-05-06 20:22Financial 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]