International Flavors Q1 Earnings Beat Estimates, Sales Dip Y/Y

International Flavors & Fragrances Inc. IFF reported adjusted earnings of $1.20 per share in first-quarter 2025, beating the Zacks Consensus Estimate of $1.12. The bottom line improved 6% from the year-ago quarter.

Including one-time items, the company reported a loss of $3.98 per share against the prior-year quarter’s earnings of 23 cents.

International Flavors’ net sales were $2.84 billion in the March-end quarter, decreasing 1.9% year over year. The top line surpassed the Zacks Consensus Estimate of $2.83 billion. In the January-March quarter, currency-neutral sales grew 3% year over year, driven by growth in Taste, Pharma Solutions, Health & Biosciences, and Scent segments. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

International Flavors’ Q1 Gross Margin Improves Y/Y

In the reported quarter, IFF’s cost of goods sold was down 3.6% year over year to $1.81 billion. The gross profit rose 1.1% year over year to $1.03 billion. The gross margin came in at 36.4% compared with 35.3% in the year-ago quarter.

Research and development expenses decreased 1% year over year to $164 million. The selling and administrative expenses fell 6% year over year to $461 million in the first quarter. 

The segment adjusted operating EBITDA was $578 million, up  3% year over year. The adjusted operating EBITDA margin was 20.3% compared with the year-ago quarter’s 19.9%.

IFF’s Q1 Segmental Performances

At the beginning of the first quarter of 2025, the company separated its Nourish segment into Taste and Food Ingredients segments.

Net sales in the Taste segment increased 1.3% year over year to $627 million in the March-end quarter. The adjusted operating EBITDA was $131 million, up 12% year over year. 

Net sales in the Food Ingredients segment fell 7% year over year to $796 million in the March-end quarter. The adjusted operating EBITDA was $111 million, up 2.8% year over year. 

We predicted total Nourish segment’s net sales to be at $1.44 billion and adjusted operating EBITDA of $211 million.

Sales generated in the Health & Bioscience segment were $540 million compared with the year-earlier quarter’s $529 million. Our estimate was $532 million for the same. The adjusted operating EBITDA was $138 million in the quarter, flat year over year. Our estimate for the segment’s adjusted EBITDA was $162 million.

The Scent segment’s sales were $614 million compared with the year-ago quarter’s $618 million. The figure surpassed our estimate of $606 million. The adjusted operating EBITDA fell 14.3% year over year to $144 million. Our model had projected an EBITDA of $132 million for the segment.

Sales in Pharma Solutions were $266 million in the first quarter, up 6.4% year over year. The figure surpassed our estimate of $231 million. The adjusted operating EBITDA increased 14.9% year over year to $54 million. Our model had projected an EBITDA of $37 million for the segment.

In March 2024, International Flavors announced that it entered an agreement to sell its Pharma Solutions business. On May 1, 2025, International Flavors announced the completion of the divestiture of its Pharma Solutions business unit to Roquette.

International Flavors’ Q1 Cash Flow & Balance Sheet Updates

IFF had cash, cash equivalents and restricted cash of $650 million at the end of the first quarter, up from the $471 million witnessed at the end of 2024. The long-term debt was $7.60 billion at the first-quarter end compared with $7.56 billion as of Dec. 31, 2024.

International Flavors generated $127 million of cash in operating activities in the first quarter compared with $99 million in the prior-year quarter.

IFF Reaffirms 2025 Guidance

The company continues to expect sales for fiscal 2025 between $10.6 billion and $10.9 billion. Adjusted EBITDA is expected between $2 billion and $2.15 billion.

International Flavors Stock’s Price Performance

In the past year, the company’s shares have lost 14.6% compared with the industry’s decline of 1%.

IFF’s Zacks Rank

International Flavors currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Performance of Other Chemical - Specialty Stocks in Q4

PPG Industries, Inc. PPG reported first-quarter 2025 profit of $396 million or $1.64 per share, down from $443 million or $1.71 per share in the year-ago quarter. Barring one-time items, adjusted earnings per share fell to $1.72 from $1.87 in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of $1.62.

PPG Industries’ sales were $3.68 billion in the reported quarter, down around 4% year over year. The downside can be attributed to unfavorable currency translations and business divestments. The top line beat the Zacks Consensus Estimate of $3.66 billion.

Linde plc LIN reported first-quarter 2025 adjusted earnings per share of $3.95, which surpassed the Zacks Consensus Estimate of $3.93. The bottom line also improved from the year-ago quarter’s $3.75.

Linde’s total quarterly sales of $8.1 million missed the Zacks Consensus Estimate of $8.26 billion. However, the top line increased from the year-ago quarter’s $8.1 billion.

Ecolab Inc.’s ECL adjusted earnings in first-quarter 2025 were $1.50 per share, up from $1.34 a year ago. The figure was in line with the Zacks Consensus Estimate.

Ecolab reported net sales of $3.695 billion for the quarter, missing the Zacks Consensus Estimate of $3.697 billion. The company’s top line decreased 1.5% year over year.

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