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Food Ingredients Divestiture Progressing Well and On Track to Close by End of Second Quarter 2027
- IFF (NYSE: IFF) reported financial results for the third quarter ended September 30, 2026. Results are presented on a continuing operations basis, excluding the Food Ingredients business and other minor perimeter adjustments (the “Food Ingredients disposal group”), and the Soy Crush, Concentrates, and Lecithin businesses (the “SCL disposal group”). The Food Ingredients disposal group and the SCL disposal group are reported as discontinued operations. Third Quarter 2026 Consolidated Summary of Results, on a continuing operations basis
Reported Adjusted (GAAP) (Non-GAAP… Loss Operating Operating EPS ex Sales Before EPS EBITDA EBITDA Amortizati… Taxes Margin $1.9 B $(134) M $(0.50) $403 M 20.8% $0.83
Reported Adjusted (GAAP) (Non-GAAP)2 Income Operating Operating EPS ex Sales Before EPS EBITDA EBITDA Amortizati… Taxes Margin $5.8 B $126 M $0.23 $1.2 B 21.4% $2.58
“IFF delivered a solid third quarter, with improved sales and profitability across all divisions,” said Erik Fyrwald, CEO of IFF. “Taste and Scent delivered strong top- and bottom-line results, and Health & Biosciences improved modestly as we continue to strengthen the business. We also generated strong cash flow through the first nine months of 2026 and recently completed our $500 million accelerated share repurchase program. The separation of Food Ingredients is progressing well, and we are on track with our timeline to close.”
1 Unless otherwise noted, results are presented on a continuing operations basis, reflecting the Food Ingredients disposal group and the SCL disposal group as discontinued operations. See pages 5-6 for further information, including the basis of presentation included in this release.
2 Schedules at the end of this release contain reconciliations of reported GAAP to Non-GAAP metrics. See Use of Non-GAAP Financial Measures for explanations of our Non-GAAP metrics. 1 “Heading into year-end, we are raising the low end of our full-year financial guidance ranges, supported by our year-to-date performance. Volumes remain solid as customers continue to value our strong R&D and innovation. At the same time, we expect fourth-quarter profitability to be softer, particularly in Health & Biosciences, reflecting higher costs as well as reinvestments to strengthen the business. Amid changing macroeconomic conditions, we remain focused on what we can control and are delivering on the financial commitments we set out earlier this year. Our continued execution and these actions give us confidence to deliver results within our full-year financial outlook and our ability to create long-term value for shareholders.”
• Reported net sales for the third quarter were $1.94 billion, an increase of 4% versus the prior-year period. On a comparable basis 3 , currency neutral sales 2 increased 5% versus the prior-year period led by broad-based growth including mid-single digit performances in Scent and Taste and low-single digit growth in Health & Biosciences.
• Loss from continuing operations before taxes on a reported basis for the third quarter was $(134) million. Adjusted operating EBITDA 2 for the third quarter was $403 million. On a comparable basis 3 , currency neutral adjusted operating EBITDA 2 improved 6% versus the prior-year period, driven by volume growth. • Reported earnings per share (EPS) for the third quarter was $(0.50) per diluted share. Adjusted EPS excluding amortization 2 was $0.83 per diluted share. • Cash flows from operations for the first nine months of the year for continuing and discontinued operations were $820 million, increasing $288 million year-over-year, and free cash flow 2 , defined as cash flows from operations less capital expenditures, totaled $371 million, increasing $245 million year-over-year. Total debt to trailing twelve months net income at the end of the third quarter was 34.5x. Net debt to credit adjusted EBITDA 2 at the end of the third quarter was 2.75x, and includes the effects of both continuing and discontinued operations.
Comparable Comparable Reported Currency Adjusted Currency (GAAP) Neutral (Non-GAAP)2 Neutral (Non-GAAP)2 3 Adjusted (Non-GAAP)2 3 Sales Sales Operating Operating EBITDA EBITDA Taste 4% 6% 4% 7% Health & 1% 1% 1% 2% Biosciences Scent 6% 6% 9% 10% Consolidated 4% 5% 5% 6%
• On a reported basis, third quarter sales were $687 million. On a comparable basis 3 , currency neutral sales 2 increased 6% with broad-based growth in all regions led by a double-digit increase in Greater Asia.
• Taste adjusted operating EBITDA 2 was $128 million and adjusted operating EBITDA margin 2 was 18.6% in the third quarter. On a comparable basis 3 , currency neutral adjusted operating EBITDA 2 increased 7% driven by volume growth.
• On a reported basis, third quarter sales were $566 million. On a comparable basis 3 , currency neutral sales 2 increased 1% with growth in nearly all businesses. Mid-single digit growth in Food Biosciences and Grain Processing more than offset a decline in Health.
• Health & Biosciences adjusted operating EBITDA 2 was $136 million and adjusted operating EBITDA margin 2 was 24.0% in the third quarter. On a comparable basis 3 , currency neutral adjusted operating EBITDA 2 increased 2% with the contribution split evenly between volume growth and favorable net price to input costs.
On a reported basis, third quarter sales were $689 million. On a comparable basis 3 , currency neutral sales 2 increased 6% led by high-single digit growth in Consumer Fragrances. Fine Fragrance, against a strong double digit year ago comparable, and Fragrance Ingredients both grew mid-single digits.
• Scent adjusted operating EBITDA 2 was $139 million and adjusted operating EBITDA margin 2 was 20.2% in the third quarter. On a comparable basis 3 , currency neutral adjusted operating EBITDA 2 increased 10% driven by volume growth.
The Company provides financial guidance for continuing operations to reflect the separation of the Food Ingredients disposal group and SCL disposal group as discontinued operations. The Company now expects full year 2026 sales to be in the range of $7.5 billion to $7.6 billion (versus $7.4 billion to $7.6 billion previously). For the full year 2026 adjusted operating EBITDA is now expected to be in the range of $1.55 billion to $1.60 billion (versus $1.53 billion to $1.60 billion previously).
On a continuing operations basis, the Company now expects comparable currency neutral sales growth to be between 3% to 4% (versus 2% to 4% previously), and comparable currency neutral adjusted operating EBITDA growth to be 5% to 8% (versus 4% to 8% previously).
Based on recent market foreign exchange rates, the Company continues to expect that foreign exchange will have an approximately 1% positive impact on sales growth and have an approximately 2% positive impact on adjusted operating EBITDA growth in 2026.
A live webcast to discuss the Company’s third quarter 2026 financial results will be held on November 4, 2026, at 9:00 a.m. ET. The webcast and accompanying slide presentation may be accessed on the Company’s IR website at ir.iff.com . For those unable to listen to the live webcast, a recorded version will be made available on the Company’s website approximately one hour after the event and will remain available on IFF’s website for one year. Cautionary Statement Under The Private Securities Litigation Reform Act of 1995 This press release includes statements that are not historical facts and are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current assumptions, estimates and expectations, including with respect to our financial and operational outlook (sales, adjusted operating EBITDA and cash flow), portfolio optimization initiatives (including the pending divestiture of our Food Ingredients disposal group and the expected timing and benefits thereof), pricing, productivity and cost-discipline actions, capital allocation, future operations, growth potential, strategic investments and the expected effects of foreign exchange. These statements reflect management’s present views, are based on a series of expectations, assumptions, estimates and projections about the Company, are subject to change, and involve uncertainties that could cause actual results to differ materially.
Certain of such forward-looking information may be identified by such terms as “expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”, “will”, “would”, “estimate”, “should”, “predict”, “plan”, “project”, “could”, “potential”, “seek”, “target”, “continue”, “future”, and similar terms or variations thereof. These statements are not guarantees of future performance and are subject to risks and uncertainties that could lead to materially different outcomes.
Such risks, uncertainties and other factors include, among others, the following: (1) demand trends, competitive dynamics and customer concentration in our end markets; (2) execution of our strategic transformation and other strategic transactions, divestitures, acquisitions, collaborations and joint ventures; (3) working capital and inventory management; (4) outcomes of legal claims, disputes, regulatory investigations and litigation; (5) tariffs and trade actions, supply chain disruptions and macro events, including geopolitical developments, climate events, natural disasters, public health crises; (6) volatility in input costs (such as raw materials, transportation and energy); (7) attraction, retention and turnover of key employees and executives; (8) product innovation, time-to-market, product safety and quality; (9) cybersecurity incidents, artificial intelligence related risks, data privacy and compliance with data protection laws; (10) exposure to emerging markets, foreign currency fluctuations and international regulatory and political risks; (11) capital allocation, dividend policy and potential impairments of tangible or intangible assets; (12) our indebtedness, credit rating, liquidity, and access to capital; (13) pension and postretirement obligations; (14) compliance with federal, state, local and international rules and regulations, and regulatory, environmental, anti-corruption and 3 sanctions laws and related ethical business practices; (15) protection and enforcement of intellectual property; (16) changes in tax laws and policies, tax audits and outcomes, including potential tax liabilities related to prior transactions; and (17) changes in federal, state, local and international rules and regulations.
The foregoing list of important factors does not include all such factors, nor necessarily present them in order of importance. Important factors are described under “Risk Factors” in our most recent Annual Report on Form 10-K and in our subsequent filings with the SEC, and those disclosures are incorporated herein by reference.
We intend our forward-looking statements to speak only as of the time of such statements and do not undertake or plan to update or revise them as more information becomes available or to reflect changes in expectations, assumptions or results, whether as a result of new information, future events or otherwise. We can give no assurance that such expectations or forward-looking statements will prove to be correct. An occurrence of, or any material adverse change in, one or more of the risk factors or risks and uncertainties referred to in this press release or included in our other periodic reports filed with the SEC could materially and adversely impact our operations and our future financial results.
Any public statements or disclosures made by us following this press release that modify or impact any of the forward-looking statements contained in or accompanying this press release will be deemed to modify or supersede such outlook or other forward-looking statements in or accompanying this press release.
We provide in this press release non-GAAP financial measures, including: (i) comparable currency neutral sales; (ii) adjusted operating EBITDA and comparable currency neutral adjusted operating EBITDA; (iii) adjusted operating EBITDA margin; (iv) adjusted EPS ex amortization; (v) free cash flow; and (vi) net debt to credit adjusted EBITDA. Unless otherwise noted, all amounts and percentages in this press release reflect the results from continuing operations, with the exception of the Statements of Cash Flows and net debt to credit adjusted EBITDA which are presented on a combined continuing and discontinued basis.
Currency Neutral metrics eliminate the effects that result from translating non-U.S. currencies to U.S. dollars. We calculate currency neutral numbers by translating current year invoiced sale amounts at the exchange rates used for the corresponding prior year period. We use currency neutral results in our analysis of segment performance. We also use currency neutral numbers when analyzing our performance against that of our competitors.
Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization, interest expense, other expense, net, and certain non-recurring or unusual items that are not part of recurring operations such as impairment of goodwill, restructuring and other charges, losses (gains) on business disposals, loss on assets classified as held for sale, divestiture costs, strategic initiatives costs, regulatory costs, gain on debt extinguishment, entity realignment and other items.
Adjusted EPS ex Amortization excludes the impact of non-operational items including restructuring and other charges, divestiture costs, losses (gains) on business disposals, strategic initiatives costs, regulatory costs and other items that are not a part of recurring operations.
Free Cash Flow is operating cash flow (i.e., cash flow from operations) less capital expenditures.
Net debt to credit adjusted EBITDA is the leverage ratio used in our credit agreements and defined as net debt (which is debt for borrowed money less cash and cash equivalents) divided by the trailing 12-month credit adjusted EBITDA. Credit adjusted EBITDA is defined as income (loss) before interest expense, income taxes, depreciation and amortization, specified items and non-cash items.
These non-GAAP measures are intended to provide additional information regarding our underlying operating results and comparable year-over-year performance. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in 4 accordance with GAAP. In discussing our historical and expected future results and financial condition, we believe it is meaningful for investors to be made aware of and to be assisted in a better understanding of, on a period-to-period comparable basis, financial amounts both including and excluding these identified items, as well as the impact of exchange rate fluctuations. These non-GAAP measures should not be considered in isolation or as substitutes for analysis of the Company’s results under GAAP and may not be comparable to other companies’ calculations of such metrics.
The Company cannot reconcile its expected adjusted operating EBITDA or comparable currency neutral growth rates under "Financial Guidance" to the most directly comparable GAAP measures without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include but are not limited to divestiture costs, gains (losses) on business disposals, and regulatory costs, and their probable significance cannot be determined at this time but could be material to the Company’s GAAP results.
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the global leader in flavors, fragrances, and health and biosciences, we deliver groundbreaking, sustainable innovations that elevate everyday products—advancing wellness, delighting the senses and enhancing the human experience. Learn more at iff.com, LinkedIn, Instagram and Facebook. 5
2026 September 30, 2025 December 31, ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents $ 272 $ 347 Receivables, net 1,416 1,294 Inventories 1,452 1,507 Prepaid expenses and other current 954 742 assets Current assets of discontinued 5,181 1,704 operations Total current assets 9,275 5,594 Property, plant and equipment, 2,648 2,685 net Goodwill and other intangibles, 11,553 12,190 net Other assets 1,349 1,469 Non-current assets of discontinued — 3,601 operations Total assets $ 24,825 $ 25,539 Short-term borrowings $ 1,538 $ 1,254 Other current liabilities 2,280 2,129 Current liabilities of discontinued 1,140 550 operations Total current liabilities 4,958 3,933 Long-term debt 4,735 4,738 Non-current liabilities 1,842 2,065 Non-current liabilities of discontinued — 617 operations Total Shareholders' equity including 13,290 14,186 Non-controlling interests Total liabilities and shareholders' $ 24,825 $ 25,539 equity
Nine Months Ended Cash flows from September 30, operating activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income (loss) $ 166 $ -377 Adjustments to reconcile to net cash provided by operating activities Depreciation and 614 725 amortization Deferred income taxes -99 -226 Loss on assets classified as held for 263 108 sale Losses on sale of assets 2 1 Losses on business 6 111 disposals Stock-based compensation 71 72 Pension contributions -14 -20 Gain on extinguishment — -488 of debt Impairment of goodwill 23 1,153 Changes in assets and liabilities, net of acquisitions:
Trade receivables -291 -195 Inventories -54 -129 Accounts payable 204 28 Accruals for incentive 24 -154 compensation Other -95 -77 assets/liabilities, net Net cash provided by operating 820 532 activities Cash flows from investing activities: Additions to property, plant and -449 -406 equipment Additions to intangible -2 -2 assets Joint venture capital — -4 contributions Net proceeds received from business 247 2,707 disposals Payments to buyer for -12 — business disposals Cash (paid) received on foreign currency -58 131 forward contracts Net cash (used in) provided by investing -274 2,426 activities Cash flows from financing activities: Cash dividends paid to -306 -306 shareholders Net borrowings of commercial paper 224 370 (maturities less than three months) Principal payments of -912 -2,913 debt Proceeds from Delayed Draw Term Loan 1,000 — Facility Withholding tax paid on stock-based -19 -23 compensation Purchases of treasury -584 — stock Other, net -12 -19 Net cash used in -609 -2,891 financing activities Effect of exchange rate changes on cash -8 83 and cash equivalents Net change in cash and -71 150 cash equivalents Cash and cash equivalents at beginning 590 471 of year Cash and cash equivalents at end of $ 519 $ 621 period
(1) The cash flows from discontinued operations are included in the Consolidated Statements of Cash Flows.
The following table reconciles cash and cash equivalents between the Company's statement of cash flows for the periods ended September 30, 2026 and September 30, 2025 to the amounts reported on the Company's balance sheet:
Reconciliation of Adjusted Operating EBITDA: ─────────────────────────────────────────────────────────── Total Adjusted Operating EBITDA $ 403 Depreciation & Amortization -156 Interest Expense -46 Other Expense, net -14 Restructuring and Other Charges (b) -5 Impairment of Goodwill (c) -23 Gains on Business Disposals (d) 2 Loss on Assets Classified as Held for Sale (e) -236 Divestiture Costs (f) -10 Strategic Initiative Costs (g) -9 Regulatory Costs (h) -34 Other (k) -6 Income Before Taxes from Continuing Operations $ -134
Segment Adjusted Operating EBITDA Margin Taste 18.6 % Health & Biosciences 24.0 % Scent 20.2 % Consolidated 20.8 %
Reconciliation of Adjusted Operating EBITDA: ─────────────────────────────────────────────────────────── Total Adjusted Operating EBITDA $ 384 Depreciation & Amortization -151 Interest Expense -48 Other Expense, net -13 Restructuring and Other Charges (b) -14 Divestiture Costs (f) -11 Strategic Initiative Costs (g) -10 Regulatory Costs (h) -7 Income Before Taxes from Continuing Operations $ 130
Segment Adjusted Operating EBITDA Margin Taste 18.7 % Health & Biosciences 24.0 % Scent 19.5 % Consolidated 20.5 %
Reconciliation of Adjusted Operating EBITDA ──────────────────────────────────────────────────────────── Total Adjusted Operating EBITDA $ 1,244 Depreciation & Amortization -462 Interest Expense -136 Other Expense, net -47 Restructuring and Other Charges (b) -15 Impairment of Goodwill (c) -23 Gains on Business Disposals (d) 1 Loss on Assets Classified as Held for Sale (e) -263 Divestiture Costs (f) -25 Strategic Initiative Costs (g) -27 Regulatory Costs (h) -115 Entity Realignment Costs (j) -2 Other (k) -4 Income Before Taxes from Continuing Operations $ 126
Segment Adjusted Operating EBITDA Margin Taste 19.7 % Health & Biosciences 24.5 % Scent 20.6 % Consolidated 21.4 %
Reconciliation of Adjusted Operating EBITDA: ──────────────────────────────────────────────────────────── Total Adjusted Operating EBITDA $ 1,227 Depreciation & Amortization -439 Interest Expense -180 Other Expense, net -52 Restructuring and Other Charges (b) -49 Impairment of Goodwill (c) -34 Losses on Business Disposals (d) -111 Divestiture Costs (f) -88 Strategic Initiative Costs (g) -24 Regulatory Costs (h) -71 Gain on Debt Extinguishment (i) 488 Entity Realignment Costs (j) -5 Other (k) -6 Income Before Taxes from Continuing Operations $ 656
Segment Adjusted Operating EBITDA Margin Taste 18.8 % Health & Biosciences 24.2 % Scent 20.7 % Pharma Solutions 20.6 % Consolidated 21.0 %
There is depreciation recorded within cost of sales, research & (a) development expenses, and selling & administrative expenses, which is then added back to calculate segment Adjusted Operating EBITDA. This reflects how the CODM reviews Segment results. (b) For 2026 and 2025, represents costs primarily related to severance as part of the IFF Productivity Program. For 2026, represents the impairment of goodwill attributable to the Botanicals & Food Enhancements disposal group. For 2025, represents (c) the impairment of goodwill attributable to the portion of the Food Ingredients reporting unit that is not included within the Food Ingredients or SCL disposal groups. For 2026, primarily represents gains recognized as part of final settlement adjustments related to the divestiture of the (d) Nitrocellulose business. For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized on the sale of the Nitrocellulose business. For 2026, represents the loss on assets classified as held for sale (e) related to the Botanicals & Food Enhancements disposal group and the CitraSource business. For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures, excluding external costs related to the planned divestiture of the Food Ingredients (f) disposal group and the completed divestiture of the SCL disposal group. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, (g) accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization. For 2026 and 2025, represents costs primarily related to provisions (h) recognized for the ongoing investigations of the fragrance businesses and legal fees incurred. (i) For 2025, represents the gain recognized on the extinguishment of debt in connection with the completion of the tender offers. For 2026 and 2025, primarily represents consulting costs related to (j) the Company’s implementation of a phased restructuring initiative aimed at optimizing its legal entity framework. For 2026 and 2025, primarily represents the net impact of costs (k) related to severance for certain executives who have separated from the Company. For 2026, also represents losses recognized upon the sale of fixed assets.
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
For the three months ended September 30, 2026 and 2025, there was no difference between Reported (GAAP) and Adjusted (Non-GAAP) gross profit.
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Reconciliation of Adjusted (Non-GAAP) EPS ex. Amortization1 (DOLLARS AND SHARE AMOUNTS IN MILLIONS) Third Quarter Numerator 2026 2025 ────────────────────────────────────────────────────────────────────────────── Adjusted (Non-GAAP) Net Income $ 152 $ 131 Amortization of Acquisition related 78 84 Intangible Assets Tax impact on Amortization of Acquisition related Intangible Assets 19 20 (j) Amortization of Acquisition related 59 64 Intangible Assets, net of tax (k) Adjusted (Non-GAAP) Net Income ex. $ 211 $ 195 Amortization Denominator Weighted average shares assuming 254 257 dilution (diluted) Adjusted (Non-GAAP) EPS ex. $ 0.83 $ 0.76 Amortization
(a) For 2026 and 2025, represents costs primarily related to severance as part of the IFF Productivity Program. (b) For 2026, represents the impairment of goodwill attributable to the Botanicals & Food Enhancements disposal group. For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures, excluding external costs related to the planned divestiture of the Food Ingredients (c) disposal group and the completed divestiture of the SCL disposal group. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. For 2026, primarily represents gains recognized as part of final settlement adjustments related to the divestiture of the (d) Nitrocellulose business in 2025. For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized as part of the sale of the Nitrocellulose business. (e) For 2026, represents the loss on assets classified as held for sale related to the Botanicals & Food Enhancements disposal group. Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, (f) accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization. For 2026 and 2025, represents costs primarily related to legal fees (g) incurred and provisions recognized for the ongoing investigations of the fragrance businesses. In 2025, the Company implemented a phased restructuring initiative (h) aimed at optimizing its legal entity framework and recognized a one-time tax benefit. In 2026, the Company updated the tax benefit previously recorded. For 2026, represents the net impact of costs related to severance for (i) certain executives who have separated from the Company, and losses recognized upon the sale of fixed assets. The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, (j) except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. The tax benefit for amortization is calculated in a similar manner as the tax effects of the non-GAAP adjustments. (k) Represents all amortization of intangible assets acquired in connection with acquisitions, net of tax.
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
For the nine months ended September 30, 2026 and 2025, there was no difference between Reported (GAAP) and Adjusted (Non-GAAP) gross profit.
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Reconciliation of Adjusted (Non-GAAP) EPS ex. Amortization1 (DOLLARS AND SHARE AMOUNTS IN MILLIONS) Third Quarter Year-to-Date Numerator 2026 2025 ────────────────────────────────────────────────────────────────────────────── Adjusted (Non-GAAP) Net $ 474 $ 438 Income Amortization of Acquisition related 244 246 Intangible Assets Tax impact on Amortization of Acquisition related 60 60 Intangible Assets (k) Amortization of Acquisition related 184 186 Intangible Assets, net of tax (m) Adjusted (Non-GAAP) Net Income ex. $ 658 $ 624 Amortization Denominator Weighted average shares assuming 255 255 dilution (diluted) Adjusted (Non-GAAP) EPS $ 2.58 $ 2.45 ex. Amortization
(a) For 2026 and 2025, represents costs primarily related to severance as part of the IFF Productivity Program. For 2026, represents the impairment of goodwill attributable to the Botanicals & Food Enhancements disposal group. For 2025, represents (b) the impairment of goodwill related to the Food Ingredients reporting unit that is not included in the Food Ingredients or SCL disposal groups. For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures, excluding external costs related to the planned divestiture of the Food Ingredients (c) disposal group and the completed divestiture of the SCL disposal group. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. For 2026, primarily represents gains recognized as part of final settlement adjustments related to the divestiture of the (d) Nitrocellulose business in 2025. For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized as part of the sale of the Nitrocellulose business. For 2026, represents the loss on assets classified as held for sale (e) related to the CitraSource business and the Botanicals & Food Enhancements disposal group. Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, (f) accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization. For 2026 and 2025, represents costs primarily related to legal fees (g) incurred and provisions recognized for the ongoing investigations of the fragrance businesses. (h) For 2025, represents the gain recognized on the extinguishment of debt in connection with the completion of the tender offers. In 2025, the Company implemented a phased restructuring initiative (i) aimed at optimizing its legal entity framework and recognized a one-time tax benefit. In 2026, the Company updated the tax benefit previously recorded. For 2026 and 2025, primarily represents the net impact of costs (j) related to severance for certain executives who have separated from the Company. For 2026, also represents losses recognized upon the sale of fixed assets. The income tax effects of non-GAAP adjustments are calculated based on the applicable statutory tax rate for the relevant jurisdiction, (k) except for those items which are non-taxable or subject to valuation allowances for which the tax expense (benefit) was calculated at 0%. The tax benefit for amortization is calculated in a similar manner as the tax effects of the non-GAAP adjustments. For each of the nine months ended September 30, 2026 and September (l) 30, 2025, reported and adjusted net income from continuing operations are each decreased by income attributable to non-controlling interest from continuing operations of $1 million. (m) Represents all amortization of intangible assets acquired in connection with acquisitions, net of tax.
The following information and schedules provide reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedules are not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
Reconciliation of Credit Adjusted EBITDA to Net Income(1) Twelve Months Ended September 30, (DOLLARS IN MILLIONS) 2026 ────────────────────────────────────────────────────────────────────────────── Net income $ 183 Interest expense 185 Income taxes 107 Depreciation and amortization 851 Specified items(2) 420 Non-cash items(3) 357 Credit Adjusted EBITDA $ 2,103
(1) Credit Adjusted EBITDA presented includes results from continuing and discontinued operations.
(2) Specified items consisted of restructuring and other charges, impairment of goodwill, divestiture costs, strategic initiatives costs, regulatory costs, and other costs that are not related to recurring operations.
(3) Non-cash items consisted of losses (gains) on business disposals, loss on assets classified as held for sale, and stock-based compensation.
(1) Total debt used for the calculation of net debt consisted of short-term debt, long-term debt, short-term finance lease obligations and long-term finance lease obligations. 20
The following information and schedule provides reconciliation information between reported GAAP amounts and non-GAAP certain adjusted amounts. This information and schedule is not intended as, and should not be viewed as, a substitute for reported GAAP amounts or financial statements of the Company prepared and presented in accordance with GAAP.
______________________ (1) Taste sales and segment adjusted operating EBITDA information exclude the results of the Rene Laurent business that was divested on December 1, 2025, to present fully comparable scenarios.
(2) Scent sales and segment adjusted operating EBITDA information exclude the results of the CitraSource business that was divested on July 1, 2026, to present fully comparable scenarios.
(3) Pharma sales and segment adjusted operating EBITDA information exclude the results of the Pharma Solutions disposal group and Nitrocellulose business that were divested on May 1, 2025 and May 9, 2025, respectively, to present fully comparable scenarios. 21 (4) Currency neutral sales are calculated by translating current year invoiced sale amounts at the exchange rates for the corresponding prior year period.
(5) Amounts exclude the results of the Rene Laurent business that was divested on December 1, 2025, the CitraSource business that was divested on July 1, 2026, and the Pharma Solutions disposal group and Nitrocellulose business that were divested on May 1, 2025 and May 9, 2025, respectively, to present fully comparable scenarios.
(6) Following the completed divestitures of the Pharma Solutions disposal group on May 1, 2025 and the Nitrocellulose business on May 9, 2025, the Company reallocated certain corporate costs previously attributed to the Pharma Solutions segment. These costs have been redistributed across the Taste, Health & Biosciences, and Scent segments to align with the updated 2025 operating model.
Segment Adjusted Segment Adjusted Q3 Taste Sales Operating EBITDA Operating EBITDA Margin % Change - Reported 4% 4% (0.1)% Portfolio Impact 1% 1% 0.0% % Change - 5% 5% (0.1)% Comparable Currency Impact 1% 2% 0.2% % Change - Currency 6% 7% 0.1% Neutral Q3 Health & Segment Adjusted Segment Adjusted Biosciences Sales Operating EBITDA Operating EBITDA Margin % Change - Reported 1% 1% 0.0% Portfolio Impact 0% 1% 0.1% % Change - 1% 2% 0.1% Comparable Currency Impact 0% 0% 0.0% % Change - Currency 1% 2% 0.1% Neutral Segment Adjusted Segment Adjusted Q3 Scent Sales Operating EBITDA Operating EBITDA Margin % Change - Reported 6% 9% 0.7% Portfolio Impact 0% 2% 0.3% % Change - 6% 11% 1.0% Comparable Currency Impact 0% (1)% (0.2)% % Change - Currency 6% 10% 0.8% Neutral Q3 Consolidated Sales Adjusted Operating Adjusted Operating EBITDA EBITDA Margin % Change - Reported 4% 5% 0.3% Portfolio Impact 0% 1% 0.0% % Change - 4% 6% 0.3% Comparable Currency Impact 1% 0% (0.1)% % Change - Currency 5% 6% 0.2% Neutral
Segment Adjusted Segment Adjusted YTD Taste Sales Operating EBITDA Operating EBITDA Margin % Change - Reported 5% 9% 0.9% Portfolio Impact 0% 4% 0.4% % Change - 5% 13% 1.3% Comparable Currency Impact (1)% (2)% (0.1)% % Change - Currency 4% 11% 1.2% Neutral YTD Health & Segment Adjusted Segment Adjusted Biosciences Sales Operating EBITDA Operating EBITDA Margin % Change - Reported 6% 8% 0.3% Portfolio Impact 0% 1% 0.4% % Change - 6% 9% 0.7% Comparable Currency Impact (2)% (3)% (0.2)% % Change - Currency 4% 6% 0.5% Neutral Segment Adjusted Segment Adjusted YTD Scent Sales Operating EBITDA Operating EBITDA Margin % Change - Reported 7% 7% (0.1)% Portfolio Impact 0% 3% 0.5% % Change - 7% 10% 0.4% Comparable Currency Impact (2)% (5)% (0.4)% % Change - Currency 5% 5% 0.0% Neutral YTD Consolidated Sales Adjusted Operating Adjusted Operating EBITDA EBITDA Margin % Change - Reported (1)% 1% 0.4% Portfolio Impact 7% 9% 0.3% % Change - 6% 10% 0.7% Comparable Currency Impact (2)% (3)% (0.2)% % Change - Currency 4% 7% 0.5% Neutral
Full text with the tables
FOR IMMEDIATE RELEASE
Media Relations:
Jennifer McGowan
848.358.1680
Media.request@iff.com
Investor Relations:
Michael Bender
212.708.7263
Investor.Relations@iff.com
IFF Reports Third Quarter 2026 Results
Delivered Strong Sales, Profit and Cash Flow Performance in Third Quarter 2026
Raising Low-End of Full Year 2026 Financial Guidance Ranges
Recently Completed $500M Share Repurchase Authorization
Food Ingredients Divestiture Progressing Well and On Track to Close by End of
Second Quarter 2027
NEW YORK - November 3, 2026
- IFF (NYSE: IFF) reported financial results for the third quarter ended
September 30, 2026. Results are presented on a continuing operations basis,
excluding the Food Ingredients business and other minor perimeter adjustments
(the “Food Ingredients disposal group”), and the Soy Crush, Concentrates, and
Lecithin businesses (the “SCL disposal group”). The Food Ingredients disposal
group and the SCL disposal group are reported as discontinued operations.
Third Quarter 2026 Consolidated Summary of Results, on a continuing operations
basis
1
:
Reported Adjusted
(GAAP) (Non-GAAP…
Loss Operating Operating EPS ex
Sales Before EPS EBITDA EBITDA Amortizati…
Taxes Margin
$1.9 B $(134) M $(0.50) $403 M 20.8% $0.83
First Nine Months
2026 Consolidated Summary of Results, on a continuing operations basis
1
:
Reported Adjusted
(GAAP) (Non-GAAP)2
Income Operating Operating EPS ex
Sales Before EPS EBITDA EBITDA Amortizati…
Taxes Margin
$5.8 B $126 M $0.23 $1.2 B 21.4% $2.58
Management Commentary
“IFF delivered a solid third quarter, with improved sales and profitability
across all divisions,” said Erik Fyrwald, CEO of IFF. “Taste and Scent delivered
strong top- and bottom-line results, and Health & Biosciences improved modestly
as we continue to strengthen the business. We also generated strong cash flow
through the first nine months of 2026 and recently completed our $500 million
accelerated share repurchase program. The separation of Food Ingredients is
progressing well, and we are on track with our timeline to close.”
1 Unless otherwise noted, results are presented on a continuing operations
basis, reflecting the Food Ingredients disposal group and the SCL disposal group
as discontinued operations. See pages 5-6 for further information, including the
basis of presentation included in this release.
2 Schedules at the end of this release contain reconciliations of reported GAAP
to Non-GAAP metrics. See Use of Non-GAAP Financial Measures for explanations of
our Non-GAAP metrics.
1
“Heading into year-end, we are raising the low end of our full-year financial
guidance ranges, supported by our year-to-date performance. Volumes remain solid
as customers continue to value our strong R&D and innovation. At the same time,
we expect fourth-quarter profitability to be softer, particularly in Health &
Biosciences, reflecting higher costs as well as reinvestments to strengthen the
business. Amid changing macroeconomic conditions, we remain focused on what we
can control and are delivering on the financial commitments we set out earlier
this year. Our continued execution and these actions give us confidence to
deliver results within our full-year financial outlook and our ability to create
long-term value for shareholders.”
Third Quarter 2026 Consolidated Financial Results
1
• Reported net sales for the third quarter were $1.94 billion, an increase of 4%
versus the prior-year period. On a comparable basis 3 , currency neutral sales 2
increased 5% versus the prior-year period led by broad-based growth including
mid-single digit performances in Scent and Taste and low-single digit growth in
Health & Biosciences.
• Loss from continuing operations before taxes on a reported basis for the third
quarter was $(134) million. Adjusted operating EBITDA 2 for the third quarter
was $403 million. On a comparable basis 3 , currency neutral adjusted operating
EBITDA 2 improved 6% versus the prior-year period, driven by volume growth.
• Reported earnings per share (EPS) for the third quarter was $(0.50) per
diluted share. Adjusted EPS excluding amortization 2 was $0.83 per diluted
share.
• Cash flows from operations for the first nine months of the year for
continuing and discontinued operations were $820 million, increasing $288
million year-over-year, and free cash flow 2 , defined as cash flows from
operations less capital expenditures, totaled $371 million, increasing $245
million year-over-year. Total debt to trailing twelve months net income at the
end of the third quarter was 34.5x. Net debt to credit adjusted EBITDA 2 at the
end of the third quarter was 2.75x, and includes the effects of both continuing
and discontinued operations.
Third Quarter 2026 Segment Summary
1
: Growth vs. Prior Year
Comparable Comparable
Reported Currency Adjusted Currency
(GAAP) Neutral (Non-GAAP)2 Neutral
(Non-GAAP)2 3 Adjusted
(Non-GAAP)2 3
Sales Sales Operating Operating
EBITDA EBITDA
Taste 4% 6% 4% 7%
Health & 1% 1% 1% 2%
Biosciences
Scent 6% 6% 9% 10%
Consolidated 4% 5% 5% 6%
Taste Segment
• On a reported basis, third quarter sales were $687 million. On a comparable
basis 3 , currency neutral sales 2 increased 6% with broad-based growth in all
regions led by a double-digit increase in Greater Asia.
• Taste adjusted operating EBITDA 2 was $128 million and adjusted operating
EBITDA margin 2 was 18.6% in the third quarter. On a comparable basis 3 ,
currency neutral adjusted operating EBITDA 2 increased 7% driven by volume
growth.
Health & Biosciences Segment
• On a reported basis, third quarter sales were $566 million. On a comparable
basis 3 , currency neutral sales 2 increased 1% with growth in nearly all
businesses. Mid-single digit growth in Food Biosciences and Grain Processing
more than offset a decline in Health.
• Health & Biosciences adjusted operating EBITDA 2 was $136 million and adjusted
operating EBITDA margin 2 was 24.0% in the third quarter. On a comparable basis
3 , currency neutral adjusted operating EBITDA 2 increased 2% with the
contribution split evenly between volume growth and favorable net price to input
costs.
Scent Segment
3 Comparable results for the third quarter exclude the impact of divestitures.
2
•
On a reported basis, third quarter sales were $689 million. On a comparable
basis 3 , currency neutral sales 2 increased 6% led by high-single digit growth
in Consumer Fragrances. Fine Fragrance, against a strong double digit year ago
comparable, and Fragrance Ingredients both grew mid-single digits.
• Scent adjusted operating EBITDA 2 was $139 million and adjusted operating
EBITDA margin 2 was 20.2% in the third quarter. On a comparable basis 3 ,
currency neutral adjusted operating EBITDA 2 increased 10% driven by volume
growth.
Financial Guidance
1
The Company provides financial guidance for continuing operations to reflect the
separation of the Food Ingredients disposal group and SCL disposal group as
discontinued operations. The Company now expects full year 2026 sales to be in
the range of $7.5 billion to $7.6 billion (versus $7.4 billion to $7.6 billion
previously). For the full year 2026 adjusted operating EBITDA is now expected to
be in the range of $1.55 billion to $1.60 billion (versus $1.53 billion to $1.60
billion previously).
On a continuing operations basis, the Company now expects comparable currency
neutral sales growth to be between 3% to 4% (versus 2% to 4% previously), and
comparable currency neutral adjusted operating EBITDA growth to be 5% to 8%
(versus 4% to 8% previously).
Based on recent market foreign exchange rates, the Company continues to expect
that foreign exchange will have an approximately 1% positive impact on sales
growth and have an approximately 2% positive impact on adjusted operating EBITDA
growth in 2026.
Audio Webcast
A live webcast to discuss the Company’s third quarter 2026 financial results
will be held on November 4, 2026, at 9:00 a.m. ET. The webcast and accompanying
slide presentation may be accessed on the Company’s IR website at ir.iff.com .
For those unable to listen to the live webcast, a recorded version will be made
available on the Company’s website approximately one hour after the event and
will remain available on IFF’s website for one year.
Cautionary Statement Under The Private Securities Litigation Reform Act of 1995
This press release includes statements that are not historical facts and are
“forward-looking statements” within the meaning of The Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are based on
management’s current assumptions, estimates and expectations, including with
respect to our financial and operational outlook (sales, adjusted operating
EBITDA and cash flow), portfolio optimization initiatives (including the pending
divestiture of our Food Ingredients disposal group and the expected timing and
benefits thereof), pricing, productivity and cost-discipline actions, capital
allocation, future operations, growth potential, strategic investments and the
expected effects of foreign exchange. These statements reflect management’s
present views, are based on a series of expectations, assumptions, estimates and
projections about the Company, are subject to change, and involve uncertainties
that could cause actual results to differ materially.
Certain of such forward-looking information may be identified by such terms as
“expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”, “will”, “would”,
“estimate”, “should”, “predict”, “plan”, “project”, “could”, “potential”,
“seek”, “target”, “continue”, “future”, and similar terms or variations thereof.
These statements are not guarantees of future performance and are subject to
risks and uncertainties that could lead to materially different outcomes.
Such risks, uncertainties and other factors include, among others, the
following: (1) demand trends, competitive dynamics and customer concentration in
our end markets; (2) execution of our strategic transformation and other
strategic transactions, divestitures, acquisitions, collaborations and joint
ventures; (3) working capital and inventory management; (4) outcomes of legal
claims, disputes, regulatory investigations and litigation; (5) tariffs and
trade actions, supply chain disruptions and macro events, including geopolitical
developments, climate events, natural disasters, public health crises; (6)
volatility in input costs (such as raw materials, transportation and energy);
(7) attraction, retention and turnover of key employees and executives; (8)
product innovation, time-to-market, product safety and quality; (9)
cybersecurity incidents, artificial intelligence related risks, data privacy and
compliance with data protection laws; (10) exposure to emerging markets, foreign
currency fluctuations and international regulatory and political risks; (11)
capital allocation, dividend policy and potential impairments of tangible or
intangible assets; (12) our indebtedness, credit rating, liquidity, and access
to capital; (13) pension and postretirement obligations; (14) compliance with
federal, state, local and international rules and regulations, and regulatory,
environmental, anti-corruption and
3
sanctions laws and related ethical business practices; (15) protection and
enforcement of intellectual property; (16) changes in tax laws and policies, tax
audits and outcomes, including potential tax liabilities related to prior
transactions; and (17) changes in federal, state, local and international rules
and regulations.
The foregoing list of important factors does not include all such factors, nor
necessarily present them in order of importance. Important factors are described
under “Risk Factors” in our most recent Annual Report on Form 10-K and in our
subsequent filings with the SEC, and those disclosures are incorporated herein
by reference.
We intend our forward-looking statements to speak only as of the time of such
statements and do not undertake or plan to update or revise them as more
information becomes available or to reflect changes in expectations, assumptions
or results, whether as a result of new information, future events or otherwise.
We can give no assurance that such expectations or forward-looking statements
will prove to be correct. An occurrence of, or any material adverse change in,
one or more of the risk factors or risks and uncertainties referred to in this
press release or included in our other periodic reports filed with the SEC could
materially and adversely impact our operations and our future financial results.
Any public statements or disclosures made by us following this press release
that modify or impact any of the forward-looking statements contained in or
accompanying this press release will be deemed to modify or supersede such
outlook or other forward-looking statements in or accompanying this press
release.
Use of Non-GAAP Financial Measures
We provide in this press release non-GAAP financial measures, including: (i)
comparable currency neutral sales; (ii) adjusted operating EBITDA and comparable
currency neutral adjusted operating EBITDA; (iii) adjusted operating EBITDA
margin; (iv) adjusted EPS ex amortization; (v) free cash flow; and (vi) net debt
to credit adjusted EBITDA. Unless otherwise noted, all amounts and percentages
in this press release reflect the results from continuing operations, with the
exception of the Statements of Cash Flows and net debt to credit adjusted EBITDA
which are presented on a combined continuing and discontinued basis.
Our non-GAAP financial measures are defined below.
Currency Neutral metrics eliminate the effects that result from translating
non-U.S. currencies to U.S. dollars. We calculate currency neutral numbers by
translating current year invoiced sale amounts at the exchange rates used for
the corresponding prior year period. We use currency neutral results in our
analysis of segment performance. We also use currency neutral numbers when
analyzing our performance against that of our competitors.
Comparable results for the third quarter exclude the impact of divestitures.
Adjusted operating EBITDA and adjusted operating EBITDA margin exclude
depreciation and amortization, interest expense, other expense, net, and certain
non-recurring or unusual items that are not part of recurring operations such as
impairment of goodwill, restructuring and other charges, losses (gains) on
business disposals, loss on assets classified as held for sale, divestiture
costs, strategic initiatives costs, regulatory costs, gain on debt
extinguishment, entity realignment and other items.
Adjusted EPS ex Amortization excludes the impact of non-operational items
including restructuring and other charges, divestiture costs, losses (gains) on
business disposals, strategic initiatives costs, regulatory costs and other
items that are not a part of recurring operations.
Free Cash Flow is operating cash flow (i.e., cash flow from operations) less
capital expenditures.
Net debt to credit adjusted EBITDA is the leverage ratio used in our credit
agreements and defined as net debt (which is debt for borrowed money less cash
and cash equivalents) divided by the trailing 12-month credit adjusted EBITDA.
Credit adjusted EBITDA is defined as income (loss) before interest expense,
income taxes, depreciation and amortization, specified items and non-cash items.
These non-GAAP measures are intended to provide additional information regarding
our underlying operating results and comparable year-over-year performance. Such
information is supplemental to information presented in accordance with GAAP and
is not intended to represent a presentation in
4
accordance with GAAP. In discussing our historical and expected future results
and financial condition, we believe it is meaningful for investors to be made
aware of and to be assisted in a better understanding of, on a period-to-period
comparable basis, financial amounts both including and excluding these
identified items, as well as the impact of exchange rate fluctuations. These
non-GAAP measures should not be considered in isolation or as substitutes for
analysis of the Company’s results under GAAP and may not be comparable to other
companies’ calculations of such metrics.
The Company cannot reconcile its expected adjusted operating EBITDA or
comparable currency neutral growth rates under "Financial Guidance" to the most
directly comparable GAAP measures without unreasonable effort because certain
items that impact net income and other reconciling metrics are out of the
Company's control and/or cannot be reasonably predicted at this time. These
items include but are not limited to divestiture costs, gains (losses) on
business disposals, and regulatory costs, and their probable significance cannot
be determined at this time but could be material to the Company’s GAAP results.
Welcome to IFF
At IFF (NYSE: IFF), we make joy through science, creativity and heart. As the
global leader in flavors, fragrances, and health and biosciences, we deliver
groundbreaking, sustainable innovations that elevate everyday products—advancing
wellness, delighting the senses and enhancing the human experience. Learn more
at iff.com, LinkedIn, Instagram and Facebook.
5
International Flavors & Fragrances Inc.
Consolidated Statements of Income (Loss)
(Amounts in millions except per share data)
(Unaudited)
T… Ni…
M… Mo…
E… En…
S… % Se… %
20… 3… 20… Ch… 2… 30, 2… C…
──────────────────────────────────────────────────────────────────────────────
… $ 1… $ 1… 4 % $ 5,… $ 5,… -1 %
…
…
… 1… 1… 4 % 3,… 3,… -2 %
…
… 8… 7… 3 % 2,… 2,… 1 %
…
…
… 1… 1… 5 % 494 487 1 %
…
…
…
… 3… 3… 11 % 1,… 1,… 1 %
…
…
…
… 78 84 -7 % 244 246 -1 %
…
…
…
… 23 — NMF 23 34 N…
…
…
… 5 14 -… % 15 49 -69 %
…
…
…
…
… 2 — NMF 2 1 100 %
…
…
… 1… 1… -… % 571 511 12 %
…
… 46 48 -4 % 136 180 -24 %
…
…
…
… — — NMF — -4… N…
…
…
…
…
… -2 — NMF -1 111 -1… %
…
…
…
…
…
… 2… — NMF 263 — N…
…
…
…
…
…
… 14 13 8 % 47 52 -10 %
…
…
…
…
… -… 1… -… % 126 656 -81 %
…
…
…
…
…
… -7 31 -… % 65 -61 -2… %
…
…
…
…
… -… 99 -… % 61 717 -91 %
…
…
…
…
…
…
… 99 -… -… % 143 -1… -1… %
…
…
…
…
…
…
… 27 -… -… % 38 4 N…
…
…
…
…
…
…
… 72 -… -… % 105 -1… -1… %
…
…
…
…
… -… 41 -… % 166 -3… -1… %
…
…
…
…
…
… — — NMF 1 1 — %
…
…
…
…
…
…
…
…
… — 1 -… % 1 1 — %
…
…
…
…
…
…
…
… $ -… $ 40 -… % $ 164 $ -3… -1… %
…
…
…
…
…
…
…
…
-
…
… $ -… $ 0… $ 0.… $ 2.…
…
… 0… -… 0.… -4…
…
…
…
…
… $ -… $ 0… $ 0.… $ -1…
…
-
…
…
…
…
…
…
-
…
… $ -… $ 0… $ 0.… $ 2.…
…
… 0… -… 0.… -4…
…
…
…
…
… $ -… $ 0… $ 0.… $ -1…
…
-
…
…
…
…
…
…
…
…
…
… 2… 2… 254 255
…
-
…
…
…
…
… 2… 2… 255 256
…
-
…
NMF Not meaningful
6
International Flavors & Fragrances Inc.
Condensed Consolidated Balance Sheets
(Amounts in millions)
(Unaudited)
2026 September 30, 2025 December 31,
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents $ 272 $ 347
Receivables, net 1,416 1,294
Inventories 1,452 1,507
Prepaid expenses and other
current 954 742
assets
Current assets of discontinued 5,181 1,704
operations
Total current assets 9,275 5,594
Property, plant and equipment, 2,648 2,685
net
Goodwill and other intangibles, 11,553 12,190
net
Other assets 1,349 1,469
Non-current assets of
discontinued — 3,601
operations
Total assets $ 24,825 $ 25,539
Short-term borrowings $ 1,538 $ 1,254
Other current liabilities 2,280 2,129
Current liabilities of
discontinued 1,140 550
operations
Total current liabilities 4,958 3,933
Long-term debt 4,735 4,738
Non-current liabilities 1,842 2,065
Non-current liabilities of
discontinued — 617
operations
Total Shareholders' equity
including 13,290 14,186
Non-controlling interests
Total liabilities and
shareholders' $ 24,825 $ 25,539
equity
7
International Flavors & Fragrances Inc.
Consolidated Statements of Cash Flows
(1)
(Amounts in millions)
(Unaudited)
Nine Months Ended
Cash flows from September 30,
operating activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income (loss) $ 166 $ -377
Adjustments to reconcile
to net cash
provided by operating
activities
Depreciation and 614 725
amortization
Deferred income taxes -99 -226
Loss on assets
classified as held for 263 108
sale
Losses on sale of assets 2 1
Losses on business 6 111
disposals
Stock-based compensation 71 72
Pension contributions -14 -20
Gain on extinguishment — -488
of debt
Impairment of goodwill 23 1,153
Changes in assets and
liabilities, net
of acquisitions:
Trade receivables -291 -195
Inventories -54 -129
Accounts payable 204 28
Accruals for incentive 24 -154
compensation
Other -95 -77
assets/liabilities, net
Net cash provided by
operating 820 532
activities
Cash flows from
investing activities:
Additions to property,
plant and -449 -406
equipment
Additions to intangible -2 -2
assets
Joint venture capital — -4
contributions
Net proceeds received
from business 247 2,707
disposals
Payments to buyer for -12 —
business disposals
Cash (paid) received on
foreign currency -58 131
forward contracts
Net cash (used in)
provided by investing -274 2,426
activities
Cash flows from
financing activities:
Cash dividends paid to -306 -306
shareholders
Net borrowings of
commercial paper 224 370
(maturities less than
three months)
Principal payments of -912 -2,913
debt
Proceeds from Delayed
Draw Term Loan 1,000 —
Facility
Withholding tax paid on
stock-based -19 -23
compensation
Purchases of treasury -584 —
stock
Other, net -12 -19
Net cash used in -609 -2,891
financing activities
Effect of exchange rate
changes on cash -8 83
and cash equivalents
Net change in cash and -71 150
cash equivalents
Cash and cash
equivalents at beginning 590 471
of year
Cash and cash
equivalents at end of $ 519 $ 621
period
(1) The cash flows from discontinued operations are included in the Consolidated
Statements of Cash Flows.
The following table reconciles cash and cash equivalents between the Company's
statement of cash flows for the periods ended September 30, 2026 and September
30, 2025 to the amounts reported on the Company's balance sheet:
AMOUNTS
IN Septemb… December September December
MILLIONS 30, 2026 31, 2025 30, 2025 31, 2024
──────────────────────────────────────────────────────────────────────────────
Current
assets
Cash
and $ 272 $ 347 $ 399 $ 312
cash
equiva…
Cash
and
cash
equiva…
includ… 5 — — 2
in
Assets
held
for
sale
Cash
and
cash
equiva…
includ…
in 242 243 222 157
Current
assets
of
discon…
operat…
Cash
and $ 519 $ 590 $ 621 $ 471
cash
equiva…
8
International Flavors & Fragrances Inc.
Reportable Segment Performance
(Amounts in millions)
(Unaudited)
Three
Months
Ended
Septemb…
30, 2026
──────────────────────────────────────────────────────────────────────────────
Taste Health & Scent Total
Bioscien…
Net $ 687 $ 566 $ 689 $ 1,942
Sales
Cost of -419 -305 -392
Sales
Research
& -46 -56 -67
Develop…
Expenses
Selling
& -116 -105 -112
Adminis…
Expenses
Depreci…
Expense 22 36 21
Add-back
(a)
Adjusted
Operati… $ 128 $ 136 $ 139 $ 403
EBITDA
Reconciliation of Adjusted Operating EBITDA:
───────────────────────────────────────────────────────────
Total Adjusted Operating EBITDA $ 403
Depreciation & Amortization -156
Interest Expense -46
Other Expense, net -14
Restructuring and Other Charges (b) -5
Impairment of Goodwill (c) -23
Gains on Business Disposals (d) 2
Loss on Assets Classified as Held for Sale (e) -236
Divestiture Costs (f) -10
Strategic Initiative Costs (g) -9
Regulatory Costs (h) -34
Other (k) -6
Income Before Taxes from Continuing Operations $ -134
Segment Adjusted Operating EBITDA Margin
Taste 18.6 %
Health & Biosciences 24.0 %
Scent 20.2 %
Consolidated 20.8 %
9
Three
Months
Ended
Septemb…
30, 2025
──────────────────────────────────────────────────────────────────────────────
Taste Health & Scent Total
Bioscien…
Net $ 658 $ 559 $ 652 $ 1,869
Sales
Cost of -399 -299 -372
Sales
Research
& -41 -57 -64
Develop…
Expenses
Selling
& -112 -101 -107
Adminis…
Expenses
Depreci…
Expense 17 32 18
Add-back
(a)
Adjusted
Operati… $ 123 $ 134 $ 127 $ 384
EBITDA
Reconciliation of Adjusted Operating EBITDA:
───────────────────────────────────────────────────────────
Total Adjusted Operating EBITDA $ 384
Depreciation & Amortization -151
Interest Expense -48
Other Expense, net -13
Restructuring and Other Charges (b) -14
Divestiture Costs (f) -11
Strategic Initiative Costs (g) -10
Regulatory Costs (h) -7
Income Before Taxes from Continuing Operations $ 130
Segment Adjusted Operating EBITDA Margin
Taste 18.7 %
Health & Biosciences 24.0 %
Scent 19.5 %
Consolidated 20.5 %
10
Nine
Months
Ended
Septem…
30,
2026
──────────────────────────────────────────────────────────────────────────────
Health
Taste & Scent Total
Biosci…
Net $ 2,055 $ 1,742 $ 2,005 $ 5,802
Sales
Cost
of -1,227 -927 -1,141
Sales
Resea…
& -139 -167 -187
Devel…
Expen…
Selli…
& -344 -324 -321
Admin…
Expen…
Depre…
Expen… 59 102 58
Add-b…
(a)
Adjus…
Opera… $ 404 $ 426 $ 414 $ 1,244
EBITDA
Reconciliation of Adjusted Operating EBITDA
────────────────────────────────────────────────────────────
Total Adjusted Operating EBITDA $ 1,244
Depreciation & Amortization -462
Interest Expense -136
Other Expense, net -47
Restructuring and Other Charges (b) -15
Impairment of Goodwill (c) -23
Gains on Business Disposals (d) 1
Loss on Assets Classified as Held for Sale (e) -263
Divestiture Costs (f) -25
Strategic Initiative Costs (g) -27
Regulatory Costs (h) -115
Entity Realignment Costs (j) -2
Other (k) -4
Income Before Taxes from Continuing Operations $ 126
Segment Adjusted Operating EBITDA Margin
Taste 19.7 %
Health & Biosciences 24.5 %
Scent 20.6 %
Consolidated 21.4 %
11
Nine
Mon…
End…
Sep…
30,
2025
──────────────────────────────────────────────────────────────────────────────
Hea… Pha…
Tas… & Sce… Sol… Total
Bio…
Net $ 1,9… $ 1,638 $ 1,869 $ 369 $ 5,8…
Sa…
Co…
of -1,… -875 -1,0… -248
Sa…
Re…
& -131 -163 -184 -8
De…
Ex…
Se…
& -321 -294 -298 -42
Ad…
Ex…
De…
Ex… 49 90 50 5
Ad…
(a)
Ad…
Op… $ 369 $ 396 $ 386 $ 76 $ 1,2…
EB…
Reconciliation of Adjusted Operating EBITDA:
────────────────────────────────────────────────────────────
Total Adjusted Operating EBITDA $ 1,227
Depreciation & Amortization -439
Interest Expense -180
Other Expense, net -52
Restructuring and Other Charges (b) -49
Impairment of Goodwill (c) -34
Losses on Business Disposals (d) -111
Divestiture Costs (f) -88
Strategic Initiative Costs (g) -24
Regulatory Costs (h) -71
Gain on Debt Extinguishment (i) 488
Entity Realignment Costs (j) -5
Other (k) -6
Income Before Taxes from Continuing Operations $ 656
Segment Adjusted Operating EBITDA Margin
Taste 18.8 %
Health & Biosciences 24.2 %
Scent 20.7 %
Pharma Solutions 20.6 %
Consolidated 21.0 %
12
There is depreciation recorded within cost of sales, research &
(a) development expenses, and selling & administrative expenses, which is
then added back to calculate segment Adjusted Operating EBITDA. This
reflects how the CODM reviews Segment results.
(b) For 2026 and 2025, represents costs primarily related to severance as
part of the IFF Productivity Program.
For 2026, represents the impairment of goodwill attributable to the
Botanicals & Food Enhancements disposal group. For 2025, represents
(c) the impairment of goodwill attributable to the portion of the Food
Ingredients reporting unit that is not included within the Food
Ingredients or SCL disposal groups.
For 2026, primarily represents gains recognized as part of final
settlement adjustments related to the divestiture of the
(d) Nitrocellulose business. For 2025, primarily represents losses
recognized as part of the sale of the Pharma Solutions disposal
group, offset in part by gains recognized on the sale of the
Nitrocellulose business.
For 2026, represents the loss on assets classified as held for sale
(e) related to the Botanicals & Food Enhancements disposal group and the
CitraSource business.
For 2026 and 2025, primarily represents costs related to the
Company’s completed and anticipated divestitures, excluding external
costs related to the planned divestiture of the Food Ingredients
(f) disposal group and the completed divestiture of the SCL disposal
group. These costs primarily consisted of external consulting fees,
professional and legal fees and salaries of individuals who are fully
dedicated to such efforts.
Represents costs related to the Company’s strategic assessment and
business portfolio optimization efforts and reorganizing the Global
Business Services (GBS) Centers. In 2026, the GBS reorganization has
been expanded to include additional functions such as customer
service, supply chain and logistics in addition to human resources,
(g) accounting and finance, as well as additional efforts to automate
processes and expand the use of artificial intelligence (AI) for
these functions. These costs primarily consisted of external
consulting fees and salaries of individuals who are fully dedicated
to such efforts. Costs to develop software and AI are only included
to the extent that they do not qualify for capitalization.
For 2026 and 2025, represents costs primarily related to provisions
(h) recognized for the ongoing investigations of the fragrance businesses
and legal fees incurred.
(i) For 2025, represents the gain recognized on the extinguishment of
debt in connection with the completion of the tender offers.
For 2026 and 2025, primarily represents consulting costs related to
(j) the Company’s implementation of a phased restructuring initiative
aimed at optimizing its legal entity framework.
For 2026 and 2025, primarily represents the net impact of costs
(k) related to severance for certain executives who have separated from
the Company. For 2026, also represents losses recognized upon the
sale of fixed assets.
13
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide reconciliation information
between reported GAAP amounts and non-GAAP certain adjusted amounts. This
information and schedules are not intended as, and should not be viewed as, a
substitute for reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
For the three months ended September 30, 2026 and 2025, there was no difference
between Reported (GAAP) and Adjusted (Non-GAAP) gross profit.
Reconciliation of Selling and (DOLLARS IN
Administrative Expenses1 MILLIONS) Third Quarter 2026 2025
──────────────────────────────────────────────────────────────────────────────
Reported (GAAP) $ 387 $ 348
Divestiture Costs (c) -10 -11
Strategic Initiatives Costs (f) -9 -9
Regulatory Costs (g) -34 -6
Other (i) -3 -2
Adjusted (Non-GAAP) $ 331 $ 320
14
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide reconciliation information
between reported GAAP amounts and non-GAAP certain adjusted amounts. This
information and schedules are not intended as, and should not be viewed as, a
substitute for reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
…
…
…
…
…
…
…
…
…
…
…
… T… (… (…
… Q… P… N… P… N…
… 2… f… i… 2… f… i…
… I… i… a… I… i… a…
… b… t… to D… b… t… to D…
… t… (… I… E… t… (… I… E…
──────────────────────────────────────────────────────────────────────────────
… $ -… $ -7 $ -… $ … $ … $ … $ … $ …
…
…
…
… 5 1 4 … … 3 … …
…
…
…
… 23 — 23 … — — — —
…
…
…
… 10 3 7 … … 3 8 …
…
…
…
… -2 -1 -1 — — … 1 —
…
…
…
…
…
…
… 2… 48 1… … — — — —
…
…
…
…
…
… 9 2 7 … … 2 8 …
…
…
…
… 34 1 33 … 7 2 5 …
…
…
… — -… 12 … — — — —
…
…
… 6 — 6 … — 1 … —
…
… $ 1… $ 35 $ 1… $ … $ … $ … $ … $ …
…
Reconciliation of Adjusted (Non-GAAP)
EPS ex. Amortization1
(DOLLARS AND SHARE AMOUNTS IN MILLIONS) Third Quarter
Numerator 2026 2025
──────────────────────────────────────────────────────────────────────────────
Adjusted (Non-GAAP) Net Income $ 152 $ 131
Amortization of Acquisition related 78 84
Intangible Assets
Tax impact on Amortization of
Acquisition related Intangible Assets 19 20
(j)
Amortization of Acquisition related 59 64
Intangible Assets, net of tax (k)
Adjusted (Non-GAAP) Net Income ex. $ 211 $ 195
Amortization
Denominator
Weighted average shares assuming 254 257
dilution (diluted)
Adjusted (Non-GAAP) EPS ex. $ 0.83 $ 0.76
Amortization
15
(a) For 2026 and 2025, represents costs primarily related to severance as
part of the IFF Productivity Program.
(b) For 2026, represents the impairment of goodwill attributable to the
Botanicals & Food Enhancements disposal group.
For 2026 and 2025, primarily represents costs related to the
Company’s completed and anticipated divestitures, excluding external
costs related to the planned divestiture of the Food Ingredients
(c) disposal group and the completed divestiture of the SCL disposal
group. These costs primarily consisted of external consulting fees,
professional and legal fees and salaries of individuals who are fully
dedicated to such efforts.
For 2026, primarily represents gains recognized as part of final
settlement adjustments related to the divestiture of the
(d) Nitrocellulose business in 2025. For 2025, primarily represents
losses recognized as part of the sale of the Pharma Solutions
disposal group, offset in part by gains recognized as part of the
sale of the Nitrocellulose business.
(e) For 2026, represents the loss on assets classified as held for sale
related to the Botanicals & Food Enhancements disposal group.
Represents costs related to the Company’s strategic assessment and
business portfolio optimization efforts and reorganizing the Global
Business Services (GBS) Centers. In 2026, the GBS reorganization has
been expanded to include additional functions such as customer
service, supply chain and logistics in addition to human resources,
(f) accounting and finance, as well as additional efforts to automate
processes and expand the use of artificial intelligence (AI) for
these functions. These costs primarily consisted of external
consulting fees and salaries of individuals who are fully dedicated
to such efforts. Costs to develop software and AI are only included
to the extent that they do not qualify for capitalization.
For 2026 and 2025, represents costs primarily related to legal fees
(g) incurred and provisions recognized for the ongoing investigations of
the fragrance businesses.
In 2025, the Company implemented a phased restructuring initiative
(h) aimed at optimizing its legal entity framework and recognized a
one-time tax benefit. In 2026, the Company updated the tax benefit
previously recorded.
For 2026, represents the net impact of costs related to severance for
(i) certain executives who have separated from the Company, and losses
recognized upon the sale of fixed assets.
The income tax effects of non-GAAP adjustments are calculated based
on the applicable statutory tax rate for the relevant jurisdiction,
(j) except for those items which are non-taxable or subject to valuation
allowances for which the tax expense (benefit) was calculated at 0%.
The tax benefit for amortization is calculated in a similar manner as
the tax effects of the non-GAAP adjustments.
(k) Represents all amortization of intangible assets acquired in
connection with acquisitions, net of tax.
16
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide reconciliation information
between reported GAAP amounts and non-GAAP certain adjusted amounts. This
information and schedules are not intended as, and should not be viewed as, a
substitute for reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
For the nine months ended September 30, 2026 and 2025, there was no difference
between Reported (GAAP) and Adjusted (Non-GAAP) gross profit.
Reconciliation of
Selling and
Administrative (DOLLARS IN Third Quarter
Expenses1 MILLIONS) Year-to-Date 2026 2025
──────────────────────────────────────────────────────────────────────────────
Reported (GAAP) $ 1,158 $ 1,147
Divestiture Costs -25 -88
(c)
Strategic
Initiatives Costs -27 -23
(f)
Regulatory Costs (g) -115 -70
Entity Realignment -2 -5
Costs (i)
Other (j) -2 -6
Adjusted (Non-GAAP) $ 987 $ 955
17
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
(Unaudited)
The following information and schedules provide reconciliation information
between reported GAAP amounts and non-GAAP certain adjusted amounts. This
information and schedules are not intended as, and should not be viewed as, a
substitute for reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
…
…
…
…
…
…
…
…
…
…
… T…
… Q… P… N… … …
… Y… (… i… … …
… 2… f… a… … … …
… I… i… to … … …
… b… t… I… … … … … …
… t… (… (… … … … … …
──────────────────────────────────────────────────────────────────────────────
… $ 1… $ 65 $ 60 $ 0… $ 6… $ -… $ 7… $ 2…
…
…
…
… 15 4 11 0… 49 11 38 0…
…
…
…
… 23 — 23 0… 34 — 34 0…
…
…
…
… 25 5 20 0… 88 37 51 0…
…
…
…
… -1 -1 — — 1… -… 2… 0…
…
…
…
…
…
…
…
… 2… 52 2… 0… — — — —
…
…
…
…
…
… 27 6 21 0… 24 5 19 0…
…
…
…
… 1… 4 1… 0… 71 17 54 0…
…
…
…
… — — — — -… -… -… -…
…
…
…
… 2 -… 13 0… 5 3… -… -…
…
…
… 4 — 4 0… 6 1 5 0…
…
… $ 5… $ 1… $ 4… $ 1… $ 5… $ 1… $ 4… $ 1…
…
Reconciliation of Adjusted
(Non-GAAP) EPS ex.
Amortization1
(DOLLARS AND SHARE AMOUNTS
IN MILLIONS) Third Quarter Year-to-Date
Numerator 2026 2025
──────────────────────────────────────────────────────────────────────────────
Adjusted (Non-GAAP) Net $ 474 $ 438
Income
Amortization of
Acquisition related 244 246
Intangible Assets
Tax impact on Amortization
of
Acquisition related 60 60
Intangible Assets
(k)
Amortization of
Acquisition related 184 186
Intangible Assets, net of
tax (m)
Adjusted (Non-GAAP) Net
Income ex. $ 658 $ 624
Amortization
Denominator
Weighted average shares
assuming 255 255
dilution (diluted)
Adjusted (Non-GAAP) EPS $ 2.58 $ 2.45
ex. Amortization
18
(a) For 2026 and 2025, represents costs primarily related to severance as
part of the IFF Productivity Program.
For 2026, represents the impairment of goodwill attributable to the
Botanicals & Food Enhancements disposal group. For 2025, represents
(b) the impairment of goodwill related to the Food Ingredients reporting
unit that is not included in the Food Ingredients or SCL disposal
groups.
For 2026 and 2025, primarily represents costs related to the
Company’s completed and anticipated divestitures, excluding external
costs related to the planned divestiture of the Food Ingredients
(c) disposal group and the completed divestiture of the SCL disposal
group. These costs primarily consisted of external consulting fees,
professional and legal fees and salaries of individuals who are fully
dedicated to such efforts.
For 2026, primarily represents gains recognized as part of final
settlement adjustments related to the divestiture of the
(d) Nitrocellulose business in 2025. For 2025, primarily represents
losses recognized as part of the sale of the Pharma Solutions
disposal group, offset in part by gains recognized as part of the
sale of the Nitrocellulose business.
For 2026, represents the loss on assets classified as held for sale
(e) related to the CitraSource business and the Botanicals & Food
Enhancements disposal group.
Represents costs related to the Company’s strategic assessment and
business portfolio optimization efforts and reorganizing the Global
Business Services (GBS) Centers. In 2026, the GBS reorganization has
been expanded to include additional functions such as customer
service, supply chain and logistics in addition to human resources,
(f) accounting and finance, as well as additional efforts to automate
processes and expand the use of artificial intelligence (AI) for
these functions. These costs primarily consisted of external
consulting fees and salaries of individuals who are fully dedicated
to such efforts. Costs to develop software and AI are only included
to the extent that they do not qualify for capitalization.
For 2026 and 2025, represents costs primarily related to legal fees
(g) incurred and provisions recognized for the ongoing investigations of
the fragrance businesses.
(h) For 2025, represents the gain recognized on the extinguishment of
debt in connection with the completion of the tender offers.
In 2025, the Company implemented a phased restructuring initiative
(i) aimed at optimizing its legal entity framework and recognized a
one-time tax benefit. In 2026, the Company updated the tax benefit
previously recorded.
For 2026 and 2025, primarily represents the net impact of costs
(j) related to severance for certain executives who have separated from
the Company. For 2026, also represents losses recognized upon the
sale of fixed assets.
The income tax effects of non-GAAP adjustments are calculated based
on the applicable statutory tax rate for the relevant jurisdiction,
(k) except for those items which are non-taxable or subject to valuation
allowances for which the tax expense (benefit) was calculated at 0%.
The tax benefit for amortization is calculated in a similar manner as
the tax effects of the non-GAAP adjustments.
For each of the nine months ended September 30, 2026 and September
(l) 30, 2025, reported and adjusted net income from continuing operations
are each decreased by income attributable to non-controlling interest
from continuing operations of $1 million.
(m) Represents all amortization of intangible assets acquired in
connection with acquisitions, net of tax.
19
International Flavors & Fragrances Inc.
Debt Covenants
(Amounts in millions)
(Unaudited)
The following information and schedules provide reconciliation information
between reported GAAP amounts and non-GAAP certain adjusted amounts. This
information and schedules are not intended as, and should not be viewed as, a
substitute for reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Reconciliation of Credit
Adjusted EBITDA to Net Income(1) Twelve Months Ended September 30,
(DOLLARS IN MILLIONS) 2026
──────────────────────────────────────────────────────────────────────────────
Net income $ 183
Interest expense 185
Income taxes 107
Depreciation and amortization 851
Specified items(2) 420
Non-cash items(3) 357
Credit Adjusted EBITDA $ 2,103
_______________________
(1) Credit Adjusted EBITDA presented includes results from continuing and
discontinued operations.
(2) Specified items consisted of restructuring and other charges, impairment of
goodwill, divestiture costs, strategic initiatives costs, regulatory costs, and
other costs that are not related to recurring operations.
(3) Non-cash items consisted of losses (gains) on business disposals, loss on
assets classified as held for sale, and stock-based compensation.
Reconciliation of Net Debt to Total Debt
(DOLLARS IN MILLIONS) September 30, 2026
───────────────────────────────────────────────────────────────────────
Total debt(1) $ 6,307
Adjustments:
Cash and cash equivalents 519
Net debt $ 5,788
_______________________
(1) Total debt used for the calculation of net debt consisted of short-term
debt, long-term debt, short-term finance lease obligations and long-term finance
lease obligations.
20
International Flavors & Fragrances Inc.
Comparable Currency Neutral Segment Performance
(Amounts in millions)
(Unaudited)
The following information and schedule provides reconciliation information
between reported GAAP amounts and non-GAAP certain adjusted amounts. This
information and schedule is not intended as, and should not be viewed as, a
substitute for reported GAAP amounts or financial statements of the Company
prepared and presented in accordance with GAAP.
Three Nine
Mont… Mon…
Ended End…
Sept… Sep…
Net 30, 30,
Sal… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Tas… $ 691 $ 654 $ 2,028 $ 1,9…
Hea…
& 566 559 1,700 1,6…
Bio…
Sce… 691 650 1,963 1,8…
Pha… — — — —
Sol…
Con… $ 1,948 $ 1,863 $ 5,691 $ 5,4…
Seg…
Adj…
Ope…
EBI…
Tas… $ 130 $ 122 $ 398 $ 358
Hea…
& 136 134 413 390
Bio…
Sce… 138 125 396 378
Pha… — — — —
Sol…
Tot… 404 381 1,207 1,1…
Dep…
& -156 -151 -462 -439
Amo…
Int… -46 -48 -136 -180
Exp…
Oth…
Exp… -14 -13 -47 -52
net
Res…
and -5 -14 -15 -49
Oth…
Cha…
Imp…
of -23 — -23 -34
Goo…
Gai…
(Lo…
on 2 — 1 -111
Bus…
Dis…
Loss
on
Ass…
Cla… -236 — -263 —
as
Held
for
Sale
Div… -10 -11 -25 -88
Cos…
Str…
Ini… -9 -10 -27 -24
Cos…
Reg… -34 -7 -115 -71
Cos…
Gain
on — — — 488
Debt
Ext…
Ent…
Rea… — — -2 -5
Cos…
Oth… -6 — -4 -6
Imp…
of -1 — 37 —
Cur…
Flu…
Imp…
of — 3 — 101
Bus…
Div…
Inc…
from
con… $ -134 $ 130 $ 126 $ 656
ope…
bef…
tax…
Seg…
Adj…
Ope…
EBI…
Mar…
Tas… 18.8 % 18.7 % 19.6 % 18.4 %
Hea…
& 24.0 % 24.0 % 24.3 % 23.8 %
Bio…
Sce… 20.0 % 19.2 % 20.2 % 20.2 %
Con… 20.7 % 20.5 % 21.2 % 20.6 %
______________________
(1) Taste sales and segment adjusted operating EBITDA information exclude the
results of the Rene Laurent business that was divested on December 1, 2025, to
present fully comparable scenarios.
(2) Scent sales and segment adjusted operating EBITDA information exclude the
results of the CitraSource business that was divested on July 1, 2026, to
present fully comparable scenarios.
(3) Pharma sales and segment adjusted operating EBITDA information exclude the
results of the Pharma Solutions disposal group and Nitrocellulose business that
were divested on May 1, 2025 and May 9, 2025, respectively, to present fully
comparable scenarios.
21
(4) Currency neutral sales are calculated by translating current year invoiced
sale amounts at the exchange rates for the corresponding prior year period.
(5) Amounts exclude the results of the Rene Laurent business that was divested
on December 1, 2025, the CitraSource business that was divested on July 1, 2026,
and the Pharma Solutions disposal group and Nitrocellulose business that were
divested on May 1, 2025 and May 9, 2025, respectively, to present fully
comparable scenarios.
(6) Following the completed divestitures of the Pharma Solutions disposal group
on May 1, 2025 and the Nitrocellulose business on May 9, 2025, the Company
reallocated certain corporate costs previously attributed to the Pharma
Solutions segment. These costs have been redistributed across the Taste, Health
& Biosciences, and Scent segments to align with the updated 2025 operating
model.
Nine Months
Ended
September 30,
2025
──────────────────────────────────────────────────────────────────────────────
Selling & Total EBITDA
Administrative Impact
Expenses
Taste $ 6 $ -6
Health & 6 -6
Biosciences
Scent 6 -6
Total $ 18 $ -18
22
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
Comparable Foreign Exchange Impact
(Unaudited)
Segment Adjusted Segment Adjusted
Q3 Taste Sales Operating EBITDA Operating EBITDA
Margin
% Change - Reported 4% 4% (0.1)%
Portfolio Impact 1% 1% 0.0%
% Change - 5% 5% (0.1)%
Comparable
Currency Impact 1% 2% 0.2%
% Change - Currency 6% 7% 0.1%
Neutral
Q3 Health & Segment Adjusted Segment Adjusted
Biosciences Sales Operating EBITDA Operating EBITDA
Margin
% Change - Reported 1% 1% 0.0%
Portfolio Impact 0% 1% 0.1%
% Change - 1% 2% 0.1%
Comparable
Currency Impact 0% 0% 0.0%
% Change - Currency 1% 2% 0.1%
Neutral
Segment Adjusted Segment Adjusted
Q3 Scent Sales Operating EBITDA Operating EBITDA
Margin
% Change - Reported 6% 9% 0.7%
Portfolio Impact 0% 2% 0.3%
% Change - 6% 11% 1.0%
Comparable
Currency Impact 0% (1)% (0.2)%
% Change - Currency 6% 10% 0.8%
Neutral
Q3 Consolidated Sales Adjusted Operating Adjusted Operating
EBITDA EBITDA Margin
% Change - Reported 4% 5% 0.3%
Portfolio Impact 0% 1% 0.0%
% Change - 4% 6% 0.3%
Comparable
Currency Impact 1% 0% (0.1)%
% Change - Currency 5% 6% 0.2%
Neutral
_______________________
Note: The sum of these items may not foot due to rounding.
23
International Flavors & Fragrances Inc.
GAAP to Non-GAAP Reconciliation
Comparable Foreign Exchange Impact
(Unaudited)
Segment Adjusted Segment Adjusted
YTD Taste Sales Operating EBITDA Operating EBITDA
Margin
% Change - Reported 5% 9% 0.9%
Portfolio Impact 0% 4% 0.4%
% Change - 5% 13% 1.3%
Comparable
Currency Impact (1)% (2)% (0.1)%
% Change - Currency 4% 11% 1.2%
Neutral
YTD Health & Segment Adjusted Segment Adjusted
Biosciences Sales Operating EBITDA Operating EBITDA
Margin
% Change - Reported 6% 8% 0.3%
Portfolio Impact 0% 1% 0.4%
% Change - 6% 9% 0.7%
Comparable
Currency Impact (2)% (3)% (0.2)%
% Change - Currency 4% 6% 0.5%
Neutral
Segment Adjusted Segment Adjusted
YTD Scent Sales Operating EBITDA Operating EBITDA
Margin
% Change - Reported 7% 7% (0.1)%
Portfolio Impact 0% 3% 0.5%
% Change - 7% 10% 0.4%
Comparable
Currency Impact (2)% (5)% (0.4)%
% Change - Currency 5% 5% 0.0%
Neutral
YTD Consolidated Sales Adjusted Operating Adjusted Operating
EBITDA EBITDA Margin
% Change - Reported (1)% 1% 0.4%
Portfolio Impact 7% 9% 0.3%
% Change - 6% 10% 0.7%
Comparable
Currency Impact (2)% (3)% (0.2)%
% Change - Currency 4% 7% 0.5%
Neutral
_______________________
Note: The sum of these items may not foot due to rounding.
24