Loading...
•
Jun 30
IFF Q2 2025 Earnings Report
IFF reported financial results for the second quarter ended June 30, 2025, showing top-line growth and improved profitability, driven by disciplined execution and a strong focus on productivity. The company also made strides in reshaping its portfolio through divestitures and debt reduction.
Key Takeaways
IFF delivered a strong second quarter in 2025 with reported net sales of $2.76 billion and a significant increase in net income to $612 million, up 256% year-over-year. The company achieved an EPS of $2.38 and a non-GAAP EPS of $1.15, while also reducing its net debt to credit adjusted EBITDA to 2.5x, ahead of its target. Strategic portfolio reshaping continued with the closing of Pharma Solutions and Nitrocellulose divestitures and an announced agreement to sell its soy crush, concentrates, and lecithin business.
Reported net sales for Q2 2025 were $2.76 billion, a 4% decrease versus the prior-year period, but comparable currency neutral sales increased 3%.
Net income significantly increased by 256% to $612 million, with reported EPS at $2.38 and adjusted EPS ex amortization at $1.15.
Adjusted operating EBITDA for the quarter was $552 million, with a margin of 20.0%.
Leverage was reduced to 2.5x net debt to credit adjusted EBITDA, and a new $500 million share repurchase authorization was announced, reflecting confidence in long-term value.
IFF
IFF
IFF Revenue by Segment
Revenue by Segment
Taste Revenue
CapyFin.comFood Ingredients Revenue
CapyFin.comHealth & Biosciences Revenue
CapyFin.comScent Revenue
CapyFin.comPharma Solutions Revenue
CapyFin.com Forward Guidance
IFF reaffirms its full-year 2025 financial guidance, expecting sales between $10.6 billion and $10.9 billion and adjusted operating EBITDA between $2 billion and $2.15 billion. The company anticipates continued profitable growth despite a more challenging operating environment in the second half of the year.
Positive Outlook
- Reaffirmed full year 2025 sales guidance of $10.6 billion to $10.9 billion.
- Reaffirmed full year 2025 adjusted operating EBITDA guidance of $2 billion to $2.15 billion.
- Maintained outlook for 1% to 4% comparable currency neutral sales growth for full year 2025.
- Maintained outlook for 5% to 10% growth in comparable currency neutral adjusted operating EBITDA for full year 2025.
- Commitment to driving long-term value creation through disciplined execution, strategic investment, and continued productivity.
Challenges Ahead
- Expectation of growth moderation in the second half of the year.
- Anticipated approximately 1% adverse impact to sales growth from foreign exchange in 2025.
- Anticipated approximately 3% adverse impact to adjusted operating EBITDA growth from foreign exchange in 2025.
- Divestiture of Pharma Solutions results in an approximately 7% adverse impact to sales growth in 2025.
- Divestiture of Pharma Solutions results in an approximately 8% adverse impact to adjusted operating EBITDA growth in 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income