IFFNYSEIndustrial Organic ChemicalsUS GAAP · USD

International Flavors & Fragrances, Inc

International Flavors & Fragrances Inc. develops and manufactures ingredients and compounds used in foods, beverages, health and biosciences products, and scents. Its portfolio spans taste systems, food ingredients, enzymes, cultures, probiotics, and fragrance compounds/ingredients sold to consumer-product and industrial manufacturers worldwide.

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Revenue10.9bn USD
−5.2 %y/y
Operating profit (EBIT)-382m USD
−149.9 %y/y
EBIT margin-3.5%
−10.2 ppy/y
Net income-359m USD
−245.3 %y/y
Free cash flow256m USD
−57.8 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-5051015bn USD2020: 5.1 bn USD2020: EBIT 0.57 bn USD20202021: 11.7 bn USD2021: EBIT 0.59 bn USD20212022: 12.4 bn USD2022: EBIT -1.3 bn USD20222023: 11.5 bn USD2023: EBIT -2.1 bn USD20232024: 11.5 bn USD2024: EBIT 0.77 bn USD20242025: 10.9 bn USD2025: EBIT -0.38 bn USD202510.9-0.38
RevenueOperating profit (EBIT)
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Business

Share of revenue
Taste18 %

Flavor and taste solutions used in dairy, beverages, snacks, savory, sweet and baked goods.

Food Ingredients24 %

Protein solutions and other functional food ingredients used to improve texture, nutrition and formulation.

Health & Biosciences20 %

Enzymes, cultures, probiotics and related bioscience ingredients for food, health and industrial uses.

Scent28 %

Fragrance compounds and fragrance ingredients for fine fragrance, home care and personal care products.

Pharma Solutions / divested businesses10 %

Pharmaceutical excipients and nitrocellulose businesses that were sold in 2025 and no longer contribute ongoing revenue.

Customers

IFF sells primarily to manufacturers of consumer and industrial products, not to end consumers. Core buyers include food, beverage, personal care, home care, fragrance and pharmaceutical customers that need formulation expertise, regulatory support and proprietary ingredients. The company also serves a broad base of small and mid-sized customers, while a smaller group of multinational customers drives a meaningful share of sales and requires inclusion on core supplier lists.

Multinational consumer products companies

Large global customers buy fragrance, taste and functional ingredients and value supply reliability, innovation and core-list status.

Food and beverage manufacturers

Dairy, meat, beverage, snack, bakery and savory producers buy taste systems and food ingredients to improve flavor, texture and nutrition.

Home and personal care manufacturers

Soap, detergent, cleaning and personal care companies buy fragrance compounds and ingredients for product differentiation.

Small and mid-sized customers

Regional and niche manufacturers buy customized formulations and technical support; this base is broad but individually smaller.

Pharmaceutical and supplement customers

These customers historically bought excipients and related materials from Pharma Solutions, which was divested in 2025.

Strategy

IFF is reshaping its portfolio around higher-priority taste, food ingredients, health & biosciences and scent businesses after divesting Pharma Solutions and other non-core assets. Management is emphasizing customer intimacy, innovation, sustainability-related product attributes and core-supplier positioning to defend share with large multinationals and win new formulations. The company is also using restructuring and portfolio simplification to improve focus after a major segment reorganization and goodwill impairment.

Portfolio simplification and core-business focusShort term

Divestitures reduce complexity and allow capital and management attention to shift toward higher-priority categories.

Customer intimacy and core-list positioningMedium term

Large customers drive meaningful revenue, so maintaining approved supplier status is critical to growth and margin retention.

Innovation in taste, scent and biosciencesMedium term

Proprietary formulations and application expertise differentiate the company in competitive ingredient markets.

Productivity and supply-chain resilienceShort term

A broad raw-material base and global manufacturing footprint require ongoing efficiency and supply security.

Geography

Q1/2026

IFF is globally diversified, with the United States representing about 28% of 2025 sales and no other country above 10%. The company sources roughly 20,000 raw materials from domestic and international suppliers and holds a majority of cash outside the U.S., which increases foreign exchange and repatriation considerations. Its manufacturing, R&D and creative network is international, so regional demand shifts, trade policy and currency movements can affect both sales and margins.

Europe, Middle East and Africa35 %
North America29 %
Asia24 %
Latin America13 %

Share of the revenue the company reports by geography.

Risks

IFF faces demand volatility because its ingredients sit inside consumer products whose volumes depend on end-market trends, retailer dynamics and customer order timing. The business is also exposed to regulatory, quality, antitrust, supply-chain and geopolitical risks, while portfolio changes and goodwill testing can create large non-cash charges. Because the company sells to a concentrated group of large customers but serves a broad base overall, losing core-list status or failing to execute divestitures and restructuring could pressure sales and margins.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Customer demand and preference shifts1Regulatory and product compliance2Customer concentration and core-list dependence3Goodwill impairment and portfolio restructuring4Supply-chain and geopolitical disruption5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Customer demand and preference shiftsImpact: HighLikelihood: High

    IFF's ingredients are embedded in consumer products, so changes in end-market demand flow through to order volumes and product mix.

    ExposureFoodHome carePersonal careFragrance end markets
  2. Regulatory and product complianceImpact: HighLikelihood: High

    The company operates in heavily regulated categories where safety, labeling and environmental standards can raise costs or restrict sales.

    ExposureProduct safetyQualityEfficacyEnvironmental impact
  3. Customer concentration and core-list dependenceImpact: HighLikelihood: Medium

    A relatively small number of multinational customers account for a meaningful share of revenue and can demand rebates or switch suppliers.

    Exposure: Top 25 customers represented about 32% of sales in 2025

  4. Goodwill impairment and portfolio restructuringImpact: HighLikelihood: Medium

    Segment reorganization and changing fair values can produce large impairment charges and signal weaker underlying economics.

    Exposure: Food Ingredients goodwill impairment in 2025

  5. Supply-chain and geopolitical disruptionImpact: MediumLikelihood: Medium

    The company sources thousands of raw materials globally, making it vulnerable to tariffs, sanctions, logistics issues and natural disasters.

    ExposureApproximately 20000 raw materials sourced globally
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Accounting

Judgemental items
Goodwill impairment

IFF recorded a $1.153 billion impairment in Food Ingredients after the 2025 segment reorganization, showing sensitivity to fair-value assumptions.

Impact: Large non-cash charge to earnings and equity

Divestiture accounting

Sales of Pharma Solutions, Nitrocellulose and other businesses change revenue comparability and may affect gain/loss recognition and held-for-sale presentation.

Impact: Distorts year-over-year growth and segment margins

Fair value estimates

Management uses discounted cash flow and other valuation methods for reporting units and legal entities, which are highly assumption-driven.

Impact: Can materially affect impairment tests and tax outcomes

Tax realignment project

The legal entity realignment project generated a $360 million income tax benefit in 2025 based on valuation and tax-law judgments.

Impact: Can create significant one-time tax volatility

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Last updated: 24/09/2026