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IFF (IFF) Q2 Revenue Tops Estimates
The Motley Fool· 2025-08-06 06:08
Core Viewpoint - International Flavors & Fragrances (IFF) reported second-quarter 2025 results that exceeded Wall Street expectations, with revenue of $2.76 billion and adjusted EPS of $1.15, despite declines in both revenue and adjusted operating EBITDA margins compared to the previous year [1][5]. Financial Performance - GAAP revenue for Q2 2025 was $2.76 billion, surpassing the estimate of $2.70 billion but down 4.5% from $2.89 billion in Q2 2024 [2][5]. - Adjusted EPS (non-GAAP) was $1.15, slightly below the $1.16 reported in Q2 2024 and above the $1.12 consensus estimate [2][5]. - Adjusted operating EBITDA was $552 million, with a margin of 20.0%, down from 20.4% in the previous year [2][5]. - The Taste segment reported revenue of $631 million, a 3.4% increase year-over-year [2][6]. Business Overview - IFF specializes in creating compounds for flavors, fragrances, food ingredients, enzymes, and probiotics, serving various markets including food, beverages, personal care, and health [3]. - The company is focusing on innovation and has over 3,400 employees dedicated to research and development [4]. Strategic Initiatives - IFF is undergoing a business realignment strategy, including divesting non-core businesses and restructuring segments to enhance focus on higher-value areas [4][8]. - The company completed the divestiture of its Pharma Solutions business and is also selling its Nitrocellulose business [7][8]. - A $500 million share buyback program was launched, and net debt was reduced to 2.5 times adjusted EBITDA from over 3.9 times in Q1 2025 [9]. Research and Development - R&D spending increased by 5% to $182 million, emphasizing the importance of innovation for long-term growth in key product areas [10]. Future Guidance - For FY2025, IFF forecasts sales between $10.6 billion and $10.9 billion, with adjusted operating EBITDA expected in the range of $2.00 billion to $2.15 billion [11]. - The company anticipates comparable currency-neutral sales growth of 1% to 4% and adjusted operating EBITDA growth of 5% to 10%, with divestitures expected to impact sales growth by about 7% [11].
International Flavors (IFF) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKS· 2025-08-05 23:01
Core Insights - International Flavors (IFF) reported a revenue of $2.76 billion for the quarter ended June 2025, reflecting a year-over-year decline of 4.3% and an EPS of $1.15, slightly down from $1.16 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $2.73 billion by 1.19%, while the EPS surpassed the consensus estimate of $1.11 by 3.6% [1] Financial Performance Metrics - Net Sales in Health & Biosciences reached $577 million, exceeding the average estimate of $571.71 million, with a year-over-year increase of 3.4% [4] - Net Sales in Food Ingredients were reported at $850 million, above the average estimate of $834.65 million [4] - Net Sales in Scent totaled $603 million, slightly below the estimated $608.69 million, showing no change compared to the previous year [4] - Net Sales in Taste were $631 million, marginally below the average estimate of $633.74 million [4] - Net Sales in Pharma Solutions were $103 million, significantly below the estimated $120.11 million, marking a year-over-year decline of 58.8% [4] Adjusted Operating EBITDA - Adjusted Operating EBITDA for Health & Biosciences was $151 million, closely matching the average estimate of $151.69 million [4] - Adjusted Operating EBITDA for Scent was $130 million, slightly below the average estimate of $135.15 million [4] - Adjusted Operating EBITDA for Food Ingredients was $124 million, exceeding the average estimate of $111.08 million [4] - Adjusted Operating EBITDA for Taste was $125 million, below the average estimate of $129.96 million [4] - Adjusted Operating EBITDA for Pharma Solutions was $22 million, compared to the average estimate of $24.58 million [4] Stock Performance - Shares of International Flavors have returned -6.5% over the past month, contrasting with the Zacks S&P 500 composite's +1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]
International Flavors to Report Q2 Earnings: Here's What to Expect
ZACKS· 2025-08-01 17:36
Core Insights - International Flavors & Fragrances Inc. (IFF) is set to report its second-quarter 2025 results on August 5, with sales expected to decline by 5.4% year-over-year to $2.73 billion and earnings estimated at $1.11 per share, reflecting a 4.3% decrease from the previous year [1][5][6] Financial Performance - The Zacks Consensus Estimate for IFF's sales is $2.73 billion, indicating a 5.4% dip from the year-ago figure [1] - The consensus estimate for earnings per share is $1.11, which has increased by 0.9% over the past 60 days [1] - IFF has a history of earnings surprises, beating estimates in three of the last four quarters with an average surprise of 11.1% [3][4] Segment Performance - The Taste segment is projected to see a sales increase of 8.8% year-over-year to $663 million, with adjusted operating EBITDA expected to rise by 1.5% [10] - The Food Ingredients segment is anticipated to decline by 2.3% year-over-year to $827 million, with adjusted operating EBITDA rising by 0.9% [10] - The Scent segment's sales are expected to increase by 7.6% year-over-year to $649 million, although operating EBITDA is projected to decrease by 5.9% [11] - The Health & Biosciences segment is forecasted to grow by 21.3% year-over-year to $581 million, with operating EBITDA expected to increase by 1% [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 cost-cutting efforts [8] - The company has been experiencing volume growth across its businesses, which is expected to positively influence its sales performance [7]
X @The Economist
The Economist· 2025-06-30 20:02
Science, smells and secrecy. Get a whiff of the four giants that dominate the business of turning raw materials into flavours and fragrances https://t.co/Nm2zqikCiL ...
International Flavors & Fragrances: Strategic Sale Clears Path To Margin Upside
Seeking Alpha· 2025-06-18 15:08
Core Insights - International Flavors & Fragrance (IFF) is a global leader in the creation of flavors and fragrances, distinguished by its proactive research approach in product development [1] Company Overview - IFF operates across multiple segments, focusing on long-term and medium-term value creation [1] Investment Focus - The company targets investments in firms with strong fundamentals, indicating a sector-agnostic investment strategy [1]
These Analysts Revise Their Forecasts On International Flavors & Fragrances After Q1 Results
Benzinga· 2025-05-08 13:06
Core Insights - International Flavors & Fragrances Inc. (IFF) reported better-than-expected earnings for Q1, with earnings of $1.20 per share, surpassing the analyst consensus estimate of $1.14 per share [1] - The company achieved quarterly sales of $2.84 billion, exceeding the analyst consensus estimate of $2.83 billion [1] - CEO Erik Fyrwald highlighted disciplined execution and broad-based growth as key drivers of performance, along with successful divestiture of the Pharma Solutions business [2] Financial Performance - IFF's Q1 earnings per share were $1.20, beating expectations [1] - Quarterly sales reached $2.84 billion, also above analyst estimates [1] - The company affirmed its FY2025 sales guidance of $10.60 billion to $10.90 billion, compared to market estimates of $10.87 billion [2] Market Reaction - Following the earnings announcement, IFF shares dipped 7.1% to close at $73.59 [3] - Analysts adjusted their price targets for IFF after the earnings report [3] Analyst Ratings - Barclays analyst upgraded IFF from Equal-Weight to Overweight, raising the price target from $76 to $84 [8] - Baird analyst maintained an Outperform rating but lowered the price target from $110 to $100 [8]
International Flavors & Fragrances(IFF) - 2025 Q1 - Earnings Call Transcript
2025-05-07 14:00
Financial Data and Key Metrics Changes - IFF generated approximately $2.8 billion in sales for Q1 2025, representing a 3% comparable currency neutral growth [10] - Adjusted operating EBITDA totaled $578 million for the quarter, a strong 9% increase on a comparable currency neutral basis [10] - Comparable currency neutral adjusted operating EBITDA margin increased more than 120 basis points to 20.3% [10] Business Line Data and Key Metrics Changes - Pharma Solutions delivered $266 million in sales, an 8% year-over-year increase on a comparable currency neutral basis [11] - Taste segment sales were $627 million, a 7% year-over-year increase on a comparable currency neutral basis [13] - Food Ingredients had sales of $796 million, a 4% comparable currency neutral decrease from the prior year [13] - Health and Biosciences segment delivered a 5% increase in comparable currency neutral sales [14] - Scent achieved net sales of $614 million, up 4% year-over-year on a comparable currency neutral basis [14] Market Data and Key Metrics Changes - The company noted that broader macroeconomic dynamics remain challenging, but IFF's portfolio is grounded in resilient essential end markets [20] - The company expects approximately 2% adverse impact on revenue from foreign exchange, down from 4% previously [22] Company Strategy and Development Direction - IFF is focused on strengthening its business through consistent reinvestment in core growth drivers: R&D, commercial, digital, and capacity [20] - The company is maintaining its full-year guidance ranges despite macroeconomic uncertainties [21] - IFF completed the divestiture of Pharma Solutions, which strengthens its capital structure and helps achieve a net debt to credit adjusted EBITDA ratio of below three times [7][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the order book remaining consistent with guidance despite macroeconomic uncertainties [28] - The company is actively working with customers to mitigate impacts of tariff actions and remains disciplined in response to macroeconomic uncertainty [9] - Management acknowledged concerns about potential recessionary pressures but emphasized the resilience of 80% of its portfolio in essential products [29] Other Important Information - Cash flow from operations totaled $127 million year-to-date, with CapEx at $179 million, approximately 6% of sales [15] - Gross debt was approximately $9.3 billion, a decrease of more than $1 billion compared to the year-ago period [17] Q&A Session All Questions and Answers Question: Can you talk us through which areas of the portfolio could potentially be at risk and which parts could be more resilient in a recessionary scenario? - Management indicated that 80% of the portfolio is in essential products, which are resilient, while discretionary areas like fine fragrances may be at risk [29] Question: Can you disclose what you think the gross impact today is on your costs from tariffs? - Management noted a gross exposure of over $100 million for 2025 related to tariffs, primarily from China, but emphasized successful supply chain optimization efforts [35] Question: What were the year-ago comps for flavors and food ingredients? - Management reported that Taste grew 11% last year in Q1, while Food Ingredients declined 4% last year [40] Question: Can you elaborate on the strategic rationale for the joint venture with Chimera? - The joint venture aims to scale enzymatic biomaterials and is expected to start operations by the end of 2027, targeting high-value biodegradable polymers [44][46] Question: What drove volumes lower in protein solutions? - Management indicated that volumes were down due to weaker performance in lower-value areas and production issues in higher-value areas, which are being resolved [55] Question: How do you see the inventory cycle affecting IFF? - Management expressed that they do not believe inventory levels are elevated enough to cause a significant downtick, given the recent destocking period [88]
Compared to Estimates, International Flavors (IFF) Q1 Earnings: A Look at Key Metrics
ZACKS· 2025-05-06 23:00
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]
International Flavors Set to Report Q1 Earnings: What to Expect?
ZACKS· 2025-05-01 17:21
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].
International Flavors (IFF) Q1 Earnings Preview: What You Should Know Beyond the Headline Estimates
ZACKS· 2025-05-01 14:21
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]