IFF reported net sales of $2.8 billion for the first quarter ended March 31, 2025, and an adjusted operating EBITDA of $578 million, with a margin of 20.3%. The company recognized a goodwill impairment charge of $1.15 billion in the Food Ingredients reporting unit during the quarter, leading to a reported GAAP loss before taxes of $994 million.
Comparable currency-neutral sales saw growth across most businesses, with Taste up 7%, Health & Biosciences up 5%, Scent up 4%, and Pharma Solutions up 8%. Food Ingredients sales were down 4% on a comparable currency-neutral basis, but adjusted operating EBITDA for the segment increased by 5%.
The company maintained its full-year 2025 financial guidance, expecting sales in the range of $10.6 billion to $10.9 billion and adjusted operating EBITDA between $2 billion and $2.15 billion. This outlook includes four months of Pharma Solutions results, as the divestiture closed earlier than anticipated on May 1, 2025.
CEO Erik Fyrwald noted that the successful completion of the Pharma Solutions divestiture two months ahead of schedule was a key milestone, supporting the achievement of the targeted debt leverage ratio. Despite heightened macroeconomic uncertainty, IFF remains focused on driving growth, investing in innovation, and delivering increased productivity.
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