IFF · International Flavors & Fragrances Inc.

IFF delivered solid first quarter 2026 results, with reported revenue of $2.74 billion — down 4% year-over-year — but currency-neutral comparable sales up 3%, driven by volume growth across all four segments: Taste (+2%), Health & Biosciences (+5%), Scent (+1%), and Food Ingredients (+3%). Adjusted operating EBITDA of $568 million rose 8% on a comparable currency-neutral basis, supported by volume gains, favorable net pricing in Taste, and productivity improvements, though Scent’s EBITDA declined 2% due to unfavorable price-to-input cost dynamics. GAAP EPS of $0.66 reflects significant amortization expense, while adjusted EPS ex amortization of $1.25 underscores underlying operational profitability. Management emphasized disciplined execution, commercial pipeline advancement, and inflation mitigation efforts, citing these factors — combined with strong Q1 cash flow ($257M from operations, $92M free cash flow) — as de-risking the balance of the year. The reaffirmed full-year guidance ($10.5–10.8B sales; $2.05–2.15B adjusted EBITDA) now excludes two months of the divested Soy Crush, Concentrates, and Lecithin business, which closed March 2, 2026 — earlier than previously expected. Notably, the Company continues its disciplined sale process for the Food Ingredients business, explicitly aiming to maximize shareholder value. While foreign exchange is expected to add ~1% to sales growth, divestitures are projected to reduce both sales and EBITDA growth by ~5%, underscoring the portfolio reshaping underway. The forward-looking statements caution that macroeconomic uncertainty, supply chain volatility, input cost fluctuations, and execution risks around strategic initiatives remain material considerations for investors.