International Flavors & Fragrances(US:IFF) ZACKSยท2025-05-07 17:15Core Viewpoint - International Flavors & Fragrances Inc. (IFF) reported mixed financial results for Q1 2025, with adjusted earnings per share beating estimates, but a significant loss when including one-time items. The company continues to face challenges in net sales, particularly in the Food Ingredients segment, while showing growth in other areas like Pharma Solutions and Taste segments [1][2][12]. Financial Performance - Adjusted earnings per share for Q1 2025 were $1.20, exceeding the Zacks Consensus Estimate of $1.12, and improved by 6% year-over-year. However, including one-time items, the company reported a loss of $3.98 per share compared to earnings of $0.23 in the prior year [1]. - Net sales for the quarter were $2.84 billion, a decrease of 1.9% year-over-year, but above the Zacks Consensus Estimate of $2.83 billion. Currency-neutral sales grew by 3% year-over-year [2]. - Gross profit increased by 1.1% year-over-year to $1.03 billion, with a gross margin of 36.4%, up from 35.3% in the previous year [2]. Segment Performance - The Taste segment saw net sales rise by 1.3% year-over-year to $627 million, with adjusted operating EBITDA increasing by 12% to $131 million [4]. - The Food Ingredients segment experienced a decline in net sales by 7% year-over-year to $796 million, although adjusted operating EBITDA rose by 2.8% to $111 million [5]. - Health & Bioscience segment sales were $540 million, slightly up from $529 million year-over-year, with adjusted operating EBITDA remaining flat at $138 million [6]. - The Scent segment's sales were $614 million, down from $618 million year-over-year, with adjusted operating EBITDA falling by 14.3% to $144 million [7]. - Pharma Solutions reported sales of $266 million, up 6.4% year-over-year, with adjusted operating EBITDA increasing by 14.9% to $54 million [8]. Cash Flow and Balance Sheet - At the end of Q1 2025, IFF had cash, cash equivalents, and restricted cash totaling $650 million, an increase from $471 million at the end of 2024. Long-term debt rose slightly to $7.60 billion from $7.56 billion [11]. - The company generated $127 million in cash from operating activities in Q1 2025, compared to $99 million in the same quarter of the previous year [11]. Guidance - IFF reaffirmed its sales guidance for fiscal 2025, expecting between $10.6 billion and $10.9 billion, with adjusted EBITDA projected between $2 billion and $2.15 billion [12]. Stock Performance - Over the past year, IFF's shares have declined by 14.6%, contrasting with a 1% decline in the industry [13].