International Flavors to Report Q3 Earnings: What's in the Offing?

Core Insights - International Flavors & Fragrances Inc. (IFF) is set to report its third-quarter 2025 results on November 4, with sales estimated at $2.63 billion, reflecting a 10.2% year-over-year decline, and earnings per share (EPS) projected at $1.02, indicating a 1.9% decrease from the previous year [1][5]. Financial Performance - The Zacks Consensus Estimate for IFF's sales is $2.63 billion, which represents a 10.2% decrease compared to the same quarter last year [1][5]. - The earnings estimate of $1.02 per share has remained unchanged over the past 60 days, indicating a year-over-year decline of 1.9% [1]. - IFF has a history of earnings surprises, beating the Zacks Consensus Estimates in three of the last four quarters, with an average surprise of 8.3% [3][4]. Segment Performance - The Taste segment is projected to see a 0.9% decline in sales to $617 million, with adjusted operating EBITDA expected to fall by 5.9% to $121 million [10]. - The Food Ingredients segment is estimated to experience a 3.6% decrease in sales to $813 million, while its adjusted operating EBITDA is projected to rise by 17.1% to $107 million [10]. - The Scent segment is anticipated to grow by 23.4% year-over-year to $614 million, driven by strong performance in Consumer Fragrance, despite facing higher costs, with operating EBITDA expected to decrease by 4.1% to $123 million [11]. - The Health & Biosciences segment is projected to achieve sales of $580 million, reflecting a 22.1% increase from the previous year, although operating EBITDA is expected to decrease by 1.2% to $150 million [12]. Cost and Margin Considerations - IFF has been facing high raw material costs and additional expenses related to labor, shipping, and cleaning, which are likely to impact margins despite pricing actions and cost-reduction efforts [8]. - The company has been experiencing volume growth across its businesses, which is expected to positively influence its overall sales performance [7]. Stock Performance - Over the past year, IFF shares have declined by 34.4%, compared to a 7.3% decline in the industry [13].