Document
INTERNATIONAL FLAVORS & FRAGRANCES INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)(1)
| Three months ended | Three months ended | Three months ended | Three months ended | Year ended | Three months ended | ||||||||||||||||||||||||||||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | ||||||||||||||||||||||||||||||||||||||||||
| (DOLLARS AND SHARES IN MILLIONS EXCEPT PER SHARE AMOUNTS) | 2025 | 2025 | 2025 | 2025 | 2025 | 2026 | |||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 2,050 | $ | 1,919 | $ | 1,869 | $ | 1,792 | $ | 7,630 | $ | 1,906 | |||||||||||||||||||||||||||||||||||
| Cost of sales | 1,198 | 1,095 | 1,070 | 1,064 | 4,427 | 1,077 | |||||||||||||||||||||||||||||||||||||||||
| Gross profit | 852 | 824 | 799 | 728 | 3,203 | 829 | |||||||||||||||||||||||||||||||||||||||||
| Research and development expenses | 155 | 170 | 162 | 162 | 649 | 154 | |||||||||||||||||||||||||||||||||||||||||
| Selling and administrative expenses | 390 | 409 | 348 | 373 | 1,520 | 334 | |||||||||||||||||||||||||||||||||||||||||
| Amortization of acquisition-related intangibles | 80 | 82 | 84 | 72 | 318 | 84 | |||||||||||||||||||||||||||||||||||||||||
| Impairment of goodwill | 34 | — | — | — | 34 | — | |||||||||||||||||||||||||||||||||||||||||
| Restructuring and other charges | 15 | 20 | 14 | 19 | 68 | 4 | |||||||||||||||||||||||||||||||||||||||||
| Losses (gains) on sale of assets | — | 1 | — | — | 1 | — | |||||||||||||||||||||||||||||||||||||||||
| Operating profit (loss) | 178 | 142 | 191 | 102 | 613 | 253 | |||||||||||||||||||||||||||||||||||||||||
| Interest expense | 71 | 61 | 48 | 49 | 229 | 44 | |||||||||||||||||||||||||||||||||||||||||
| Gain on extinguishment of debt | — | (488) | — | — | (488) | — | |||||||||||||||||||||||||||||||||||||||||
| Losses (gains) on business disposals | — | 111 | — | (2) | 109 | — | |||||||||||||||||||||||||||||||||||||||||
| Other expense (income), net | 19 | 20 | 13 | 21 | 73 | 13 | |||||||||||||||||||||||||||||||||||||||||
| Income (loss) before taxes from continuing operations | 88 | 438 | 130 | 34 | 690 | 196 | |||||||||||||||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | 20 | (112) | 31 | 5 | (56) | 41 | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | 68 | 550 | 99 | 29 | 746 | 155 | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) from discontinued operations, net of tax | (1,085) | 49 | (58) | (11) | (1,105) | 15 | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | (1,017) | 599 | 41 | 18 | (359) | 170 | |||||||||||||||||||||||||||||||||||||||||
| Net income attributable to non-controlling interests from continuing operations | 1 | — | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||
| Net income attributable to non-controlling interests from discontinued operations | — | — | 1 | — | 1 | — | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) attributable to IFF shareholders | $ | (1,018) | $ | 599 | $ | 40 | $ | 18 | $ | (361) | $ | 169 | |||||||||||||||||||||||||||||||||||
| Income (loss) per share - basic | |||||||||||||||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.26 | $ | 2.15 | $ | 0.39 | $ | 0.11 | $ | 2.91 | $ | 0.60 | |||||||||||||||||||||||||||||||||||
| Discontinued operations | (4.24) | 0.19 | (0.23) | (0.04) | (4.32) | 0.06 | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) per share - basic | $ | (3.98) | $ | 2.34 | $ | 0.16 | $ | 0.07 | $ | (1.41) | $ | 0.66 | |||||||||||||||||||||||||||||||||||
| Income (loss) per share - diluted | |||||||||||||||||||||||||||||||||||||||||||||||
| Continuing operations | $ | 0.26 | $ | 2.14 | $ | 0.39 | $ | 0.11 | $ | 2.90 | $ | 0.60 | |||||||||||||||||||||||||||||||||||
| Discontinued operations | (4.22) | 0.19 | (0.23) | (0.04) | (4.31) | 0.06 | |||||||||||||||||||||||||||||||||||||||||
| Net income (loss) per share - diluted | $ | (3.96) | $ | 2.33 | $ | 0.16 | $ | 0.07 | $ | (1.41) | $ | 0.66 | |||||||||||||||||||||||||||||||||||
| Average number of shares outstanding | |||||||||||||||||||||||||||||||||||||||||||||||
| Average number of shares outstanding - basic | 256 | 256 | 256 | 256 | 256 | 256 | |||||||||||||||||||||||||||||||||||||||||
| Average number of shares outstanding - diluted | 257 | 257 | 257 | 257 | 257 | 257 | |||||||||||||||||||||||||||||||||||||||||
INTERNATIONAL FLAVORS & FRAGRANCES INC.
RECAST REPORTABLE SEGMENT FINANCIAL INFORMATION (UNAUDITED)(1)
| Three months ended March 31, 2025 | Three months ended June 30, 2025 | Three months ended September 30, 2025 | Three months ended December 31, 2025 | Year ended December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (DOLLARS IN MILLIONS) | As Reported(3) | Recast | As Reported(3) | Recast | As Reported(3) | Recast | As Reported(3) | Recast | As Reported(3) | Recast | ||||||||||||||||||||||||||||||||||||||||||||||
| Taste | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales | $ | 627 | $ | 650 | $ | 631 | $ | 654 | $ | 635 | $ | 658 | $ | 588 | $ | 611 | $ | 2,481 | $ | 2,573 | ||||||||||||||||||||||||||||||||||||
| Cost of sales | (377) | (394) | (377) | (397) | (379) | (399) | (367) | (387) | (1,500) | (1,577) | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 250 | 256 | 254 | 257 | 256 | 259 | 221 | 224 | 981 | 996 | ||||||||||||||||||||||||||||||||||||||||||||||
| Research and development expenses | (40) | (41) | (47) | (49) | (41) | (41) | (44) | (45) | (172) | (176) | ||||||||||||||||||||||||||||||||||||||||||||||
| Selling and administrative expenses | (94) | (101) | (98) | (108) | (103) | (112) | (101) | (110) | (396) | (431) | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation expense add-back(2) | 15 | 15 | 16 | 17 | 16 | 17 | 18 | 19 | 65 | 68 | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted Operating EBITDA | $ | 131 | $ | 129 | $ | 125 | $ | 117 | $ | 128 | $ | 123 | $ | 94 | $ | 88 | $ | 478 | $ | 457 | ||||||||||||||||||||||||||||||||||||
| Scent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales | $ | 614 | $ | 614 | $ | 603 | $ | 603 | $ | 652 | $ | 652 | $ | 610 | $ | 610 | $ | 2,479 | $ | 2,479 | ||||||||||||||||||||||||||||||||||||
| Cost of sales | (344) | (343) | (336) | (336) | (374) | (372) | (370) | (370) | (1,424) | (1,421) | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 270 | 271 | 267 | 267 | 278 | 280 | 240 | 240 | 1,055 | 1,058 | ||||||||||||||||||||||||||||||||||||||||||||||
| Research and development expenses | (55) | (58) | (62) | (62) | (63) | (64) | (61) | (62) | (241) | (246) | ||||||||||||||||||||||||||||||||||||||||||||||
| Selling and administrative expenses | (86) | (90) | (92) | (101) | (97) | (107) | (91) | (101) | (366) | (399) | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation expense add-back(2) | 15 | 15 | 17 | 17 | 17 | 18 | 18 | 19 | 67 | 69 | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted Operating EBITDA | $ | 144 | $ | 138 | $ | 130 | $ | 121 | $ | 135 | $ | 127 | $ | 106 | $ | 96 | $ | 515 | $ | 482 | ||||||||||||||||||||||||||||||||||||
| Health & Biosciences | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales | $ | 540 | $ | 520 | $ | 577 | $ | 559 | $ | 577 | $ | 559 | $ | 589 | $ | 571 | $ | 2,283 | $ | 2,209 | ||||||||||||||||||||||||||||||||||||
| Cost of sales | (298) | (282) | (311) | (294) | (315) | (299) | (322) | (307) | (1,246) | (1,182) | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 242 | 238 | 266 | 265 | 262 | 260 | 267 | 264 | 1,037 | 1,027 | ||||||||||||||||||||||||||||||||||||||||||||||
| Research and development expenses | (52) | (51) | (55) | (55) | (57) | (57) | (55) | (56) | (219) | (219) | ||||||||||||||||||||||||||||||||||||||||||||||
| Selling and administrative expenses | (81) | (92) | (91) | (101) | (87) | (101) | (89) | (99) | (348) | (393) | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation expense add-back(2) | 29 | 28 | 31 | 30 | 32 | 32 | 32 | 32 | 124 | 122 | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted Operating EBITDA | $ | 138 | $ | 123 | $ | 151 | $ | 139 | $ | 150 | $ | 134 | $ | 155 | $ | 141 | $ | 594 | $ | 537 | ||||||||||||||||||||||||||||||||||||
| Pharma Solutions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sales | $ | 266 | $ | 266 | $ | 103 | $ | 103 | — | — | — | — | $ | 369 | $ | 369 | ||||||||||||||||||||||||||||||||||||||||
| Cost of sales | (180) | (180) | (68) | (68) | — | — | — | — | (248) | (248) | ||||||||||||||||||||||||||||||||||||||||||||||
| Gross profit | 86 | 86 | 35 | 35 | — | — | — | — | 121 | 121 | ||||||||||||||||||||||||||||||||||||||||||||||
| Research and development expenses | (5) | (5) | (3) | (3) | — | — | — | — | (8) | (8) | ||||||||||||||||||||||||||||||||||||||||||||||
| Selling and administrative expenses | (32) | (32) | (10) | (10) | — | — | — | — | (42) | (42) | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation expense add-back(2) | 5 | 5 | — | — | — | — | — | — | 5 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||
| Adjusted Operating EBITDA | $ | 54 | $ | 54 | $ | 22 | $ | 22 | — | — | — | — | $ | 76 | $ | 76 | ||||||||||||||||||||||||||||||||||||||||
INTERNATIONAL FLAVORS & FRAGRANCES INC.
RECAST REPORTABLE SEGMENT FINANCIAL INFORMATION (UNAUDITED)(1)
| Three months ended March 31, 2026 | |||||||||||
| (DOLLARS IN MILLIONS) | As Reported(3) | Recast | |||||||||
| Taste | |||||||||||
| Sales | $ | 656 | $ | 680 | |||||||
| Cost of sales | (375) | (393) | |||||||||
| Gross profit | 281 | 287 | |||||||||
| Research and development expenses | (43) | (45) | |||||||||
| Selling and administrative expenses | (101) | (108) | |||||||||
Depreciation expense add-back(2) | 16 | 18 | |||||||||
| Adjusted Operating EBITDA | $ | 153 | $ | 152 | |||||||
| Scent | |||||||||||
| Sales | $ | 651 | $ | 651 | |||||||
| Cost of sales | (375) | (375) | |||||||||
| Gross profit | 276 | 276 | |||||||||
| Research and development expenses | (54) | (56) | |||||||||
| Selling and administrative expenses | (92) | (97) | |||||||||
Depreciation expense add-back(2) | 18 | 18 | |||||||||
| Adjusted Operating EBITDA | $ | 148 | $ | 141 | |||||||
| Health & Biosciences | |||||||||||
| Sales | $ | 595 | $ | 575 | |||||||
| Cost of sales | (327) | (309) | |||||||||
| Gross profit | 268 | 266 | |||||||||
| Research and development expenses | (55) | (53) | |||||||||
| Selling and administrative expenses | (92) | (105) | |||||||||
Depreciation expense add-back(2) | 32 | 32 | |||||||||
| Adjusted Operating EBITDA | $ | 153 | $ | 140 | |||||||
_______________________
(1) Revised Consolidated Statements of Income (Loss) and Recast Reportable Segment Financial Information for all periods presented reflect the Food Ingredients and SCL disposal groups as discontinued operations.
(2) There is depreciation recorded within cost of sales, research & development expenses, and selling & administrative expenses, which is then added back to calculate segment Adjusted Operating EBITDA from continuing operations.
(3) As reported represents amounts as previously filed in our interim and annual financial statements prior to any impact of discontinued operations.
INTERNATIONAL FLAVORS & FRAGRANCES INC.
RECAST REPORTABLE SEGMENT FINANCIAL INFORMATION (UNAUDITED)(1)
| Three months ended March 31, 2025 | Three months ended June 30, 2025 | Three months ended September 30, 2025 | Three months ended December 31, 2025 | Year ended December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| (DOLLARS IN MILLIONS) | As Reported(3) | Recast | As Reported(3) | Recast | As Reported(3) | Recast | As Reported(3) | Recast | As Reported(3) | Recast | ||||||||||||||||||||||||||||||||||||||||||||||
| Total Adjusted Operating EBITDA | $ | 578 | $ | 444 | $ | 552 | $ | 399 | $ | 519 | $ | 384 | $ | 437 | $ | 325 | $ | 2,086 | $ | 1,552 | ||||||||||||||||||||||||||||||||||||
| Reconciliation of Adjusted Operating EBITDA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation & Amortization | (236) | (142) | (242) | (146) | (247) | (151) | (237) | (142) | (962) | (581) | ||||||||||||||||||||||||||||||||||||||||||||||
| Interest Expense | (71) | (71) | (61) | (61) | (48) | (48) | (49) | (49) | (229) | (229) | ||||||||||||||||||||||||||||||||||||||||||||||
Other Expense, net(a) | (20) | (19) | (10) | (20) | (14) | (13) | (21) | (21) | (65) | (73) | ||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Other Charges(b) | (17) | (15) | (21) | (20) | (16) | (14) | (16) | (19) | (70) | (68) | ||||||||||||||||||||||||||||||||||||||||||||||
Loss on Assets Classified as Held for Sale(c) | — | — | — | — | (108) | — | (7) | — | (115) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Goodwill(d) | (1,153) | (34) | — | — | — | — | — | — | (1,153) | (34) | ||||||||||||||||||||||||||||||||||||||||||||||
(Losses) Gains on Business Disposals(e) | — | — | (111) | (111) | — | — | 2 | 2 | (109) | (109) | ||||||||||||||||||||||||||||||||||||||||||||||
Divestiture and Integration Costs(f) | (51) | (51) | (26) | (26) | (13) | (11) | (35) | (10) | (125) | (98) | ||||||||||||||||||||||||||||||||||||||||||||||
Strategic Initiative Costs(g) | (8) | (8) | (6) | (6) | (10) | (10) | (11) | (11) | (35) | (35) | ||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Costs(h) | (11) | (11) | (53) | (53) | (7) | (7) | (35) | (35) | (106) | (106) | ||||||||||||||||||||||||||||||||||||||||||||||
Gain on Debt Extinguishment(i) | — | — | 488 | 488 | — | — | — | — | 488 | 488 | ||||||||||||||||||||||||||||||||||||||||||||||
Entity Realignment Costs(j) | (1) | (1) | (4) | (4) | — | — | (3) | (3) | (8) | (8) | ||||||||||||||||||||||||||||||||||||||||||||||
Other(k) | (4) | (4) | (2) | (2) | — | — | (3) | (3) | (9) | (9) | ||||||||||||||||||||||||||||||||||||||||||||||
| Income (Loss) Before Taxes | $ | (994) | $ | 88 | $ | 504 | $ | 438 | $ | 56 | $ | 130 | $ | 22 | $ | 34 | $ | (412) | $ | 690 | ||||||||||||||||||||||||||||||||||||
| Three months ended March 31, 2026 | |||||||||||
| (DOLLARS IN MILLIONS) | As Reported(3) | Recast | |||||||||
| Total Adjusted Operating EBITDA | $ | 568 | $ | 433 | |||||||
| Reconciliation of Adjusted Operating EBITDA | |||||||||||
| Depreciation & Amortization | (246) | (152) | |||||||||
| Interest Expense | (44) | (44) | |||||||||
Other Expense, net(a) | (13) | (13) | |||||||||
Restructuring and Other Charges(b) | (6) | (4) | |||||||||
(Losses) Gains on Business Disposals(e) | (7) | — | |||||||||
Divestiture and Integration Costs(f) | (24) | (5) | |||||||||
Strategic Initiative Costs(g) | (9) | (9) | |||||||||
Regulatory Costs(h) | (10) | (10) | |||||||||
Entity Realignment Costs(j) | — | (1) | |||||||||
Other(k) | — | 1 | |||||||||
| Income (Loss) Before Taxes | $ | 209 | $ | 196 | |||||||
_______________________
a.2026 and 2025 as reported and recast figures primarily represents foreign exchange losses.
b.2026 and 2025 as reported and recast figures primarily represents costs related to the IFF Productivity Program including severance, fixed asset write-downs and site closure expenses, net of the gain on fixed assets previously written down.
c.As reported 2025 figures represents the loss on assets classified as held for sale of the Soy Crush, Concentrates and Lecithin (“SCL”) disposal group, which is reflected as discontinued operations.
d.As reported 2025 figures represents the impairment of goodwill related to the Food Ingredients reporting unit. Recast 2025 figures represents 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.
e.2025 as reported and recast figures 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 and sale of the Rene Laurent business in France.
f.2026 and 2025 as reported figures primarily represents costs related to the Company’s completed and anticipated divestitures. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. 2026 and 2025 recast figures exclude costs related to the planned divestiture of the Food Ingredients disposal group.
g.2026 and 2025 as reported and recast figures 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, 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.
h.2026 and 2025 as reported and recast figures represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses.
i.2025 as reported and recast figures represents the gain recognized on the extinguishment of debt in connection with the completion of the tender offers.
j.2025 as reported and recast figures represents costs related to a phased restructuring initiative aimed at optimizing its legal entity framework.
k.2025 as reported and recast figures represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company, in addition to the impact of legislative changes in India related to the Wage Code.
Non-GAAP Financial Measures
This Exhibit 99.1 contains non-GAAP financial measures, including: (i) Adjusted Operating EBITDA.
Adjusted operating EBITDA excludes depreciation and amortization, interest expense, other expense (income), net, and certain non-recurring or unusual items such as restructuring and other charges, impairment of goodwill, losses (gains) on business disposals, loss on assets classified as held for sale, divestiture and integration costs, strategic initiatives costs, regulatory costs and other costs that are not related to recurring operations.
These non-GAAP financial measures are intended to provide additional information regarding our underlying operating results that reflect the sale of the Food Ingredients and SCL disposal groups and their classification as discontinued operations. Such information is supplemental to information presented in accordance with GAAP and is not intended to represent a presentation in accordance with GAAP. 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’ calculation of such metrics.