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Mar 31, 2025
IFF Q1 2025 Earnings Report
IFF reported a net loss in Q1 2025 due to a goodwill impairment, despite solid segment growth and ahead-of-schedule divestiture of its Pharma Solutions business.
Key Takeaways
IFF posted a $1.02B net loss in Q1 2025, driven by a $1.15B impairment charge. However, adjusted EPS and EBITDA were strong, reflecting volume growth and productivity gains.
Net loss of $1.02B due to $1.15B goodwill impairment in Food Ingredients
Adjusted EPS came in at $1.20, showing operational strength
Pharma Solutions divestiture completed two months early
Adjusted operating EBITDA held steady at $578M with a 20.3% margin
Revenue by Segment
Forward Guidance
IFF maintained its full-year guidance despite macroeconomic uncertainties and foreign exchange pressures.
Positive Outlook
- Maintained full-year revenue guidance between $10.6B to $10.9B
- Adjusted operating EBITDA expected between $2.0B to $2.15B
- Currency neutral sales growth projected at 1% to 4%
- Adjusted EBITDA growth projected at 5% to 10%
- Pharma Solutions divestiture supports deleveraging goals
Challenges Ahead
- FX impact now forecasted to reduce sales by ~2% and EBITDA by ~3%
- Pharma divestiture reduces FY sales and EBITDA by ~7% and ~8%
- Guidance excludes potential effects from recessionary pressures
- Continued macroeconomic uncertainty could pose challenges
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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