Tue, May 6, 9:01 PM (9 days ago)
**International Flavors & Fragrances Inc. (IFF, Ticker: IFF) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2.843 billion, down 2% YoY due to unfavorable exchange rates. - **Gross Profit:** $1.035 billion, up 1% YoY, driven by volume increases and productivity gains. - **Net Loss:** $1.017 billion, primarily due to a $1.153 billion goodwill impairment in the Food Ingredients segment. - **Earnings per Share (EPS):** $(3.98), compared to $0.23 in Q1 2024. - **Cash Flow from Operations:** $127 million, up from $99 million in Q1 2024. **Profit Margins:** - **Gross Margin:** 36.4%, up from 35.3% in Q1 2024. - **Operating Margin:** (31.8)%, down from 6.9% in Q1 2024 due to the goodwill impairment. **Cash Flow:** - **Operating Cash Flow:** $127 million, up from $99 million in Q1 2024. - **Investing Cash Flow:** $(157) million, up from $(78) million in Q1 2024 due to increased capital expenditures. - **Financing Cash Flow:** $169 million, up from $40 million in Q1 2024 due to reduced debt repayments and dividends. **Segment Performance:** - **Taste:** Sales up 1% YoY, Adjusted EBITDA up 12% YoY. - **Food Ingredients:** Sales down 7% YoY, Adjusted EBITDA up 3% YoY. - **Health & Biosciences:** Sales up 2% YoY, Adjusted EBITDA flat YoY. - **Scent:** Sales down 5% YoY, Adjusted EBITDA down 14% YoY. - **Pharma Solutions:** Sales up 6% YoY, Adjusted EBITDA up 15% YoY. **Trends & Uncertainties:** - **Divestitures:** Completed the sale of the Pharma Solutions business and the Tobacco Flavoring business in North America. - **Productivity Program:** Initiated a productivity enhancement program aimed at optimizing the organizational footprint. - **Legal Proceedings:** Ongoing investigations and lawsuits related to the fragrance business and past acquisitions. **Future Operations Impact:** - **Capital Expenditures:** Expected to be approximately 6.5% of sales in 2025. - **Debt Repayment:** Prioritizing debt repayment to maintain an investment-grade rating. - **Dividends:** Declared a quarterly dividend of $0.40 per share. **Market Risk:** - **Currency Risk:** Cross currency swaps in a liability position with an aggregate fair value of approximately $122 million as of March 31, 2025. - **Interest Rate Risk:** Using derivative instruments to manage interest rate risk. **Controls & Procedures:** - **Disclosure Controls:** Effective as of the end of Q1 2025. - **Internal Control:** No changes that materially affected internal control over financial reporting during Q1 2025.