IFF reported net sales of $2.76 billion for the second quarter ended June 30, 2025, a 4% decrease on both a reported and currency-neutral basis compared to Q2 2024. Adjusted operating EBITDA for Q2 2025 rose 6% on a comparable currency-neutral basis to $552 million, with the adjusted operating EBITDA margin expanding by 50 basis points to 20.0%.
The company reaffirmed its full-year 2025 sales guidance in the range of $10.6 billion to $10.9 billion and adjusted operating EBITDA between $2 billion and $2.15 billion. IFF expects comparable currency-neutral sales growth of 1% to 4% and adjusted operating EBITDA growth of 5% to 10% for the full year.
IFF announced that its Board of Directors authorized a new $500 million share repurchase program, with no specified term or termination date, to be funded from available cash and operating activities. This program reflects confidence in IFF’s long-term value and marks a key milestone in its balanced capital allocation strategy.
The company also entered into a definitive agreement to divest its soy crush, concentrates, and lecithin business to Bunge, a transaction expected to close by year-end 2025. This business generated approximately $240 million in revenue in 2024 and employs around 250 people globally. This divestiture aligns with IFF’s strategy to strengthen its portfolio and supports the ongoing evaluation of strategic alternatives for its Food Ingredients segment, with a focus on maximizing shareholder value.
IFF successfully reduced its net debt-to-credit-adjusted EBITDA to 2.5x in Q2 2025, surpassing its sub-3.0x target. This was driven by proceeds from the Pharma Solutions and Nitrocellulose divestitures and a debt tender offering, reinforcing its financial position and enhancing flexibility for strategic investments.
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