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1. Company Snapshot

1.a. Company Description

International Flavors & Fragrances Inc., together with its subsidiaries, manufactures and sells cosmetic active and natural health ingredients for use in various consumer products in Europe, Africa, the Middle East, Greater Asia, North America, and Latin America.It operates through Nourish, Scent, Health & Biosciences, and Pharma Solutions segments.The Nourish segment offers natural and plant-based specialty food ingredients, such as flavor compounds, and savory solutions and inclusions.


It also provides natural food protection ingredients consist of natural antioxidants and anti-microbials as well as beverages, sweets , and dairy products.The Scent segment provides fragrance compounds, which include fine fragrances comprising perfumes and colognes, as well as consumer fragrances; fragrance ingredients comprising synthetic and natural ingredients that could be combined with other materials to create fragrance and consumer compounds; and cosmetic active ingredients consisting of active and functional ingredients, botanicals, and delivery systems to support its customers' cosmetic and personal care product lines.The Health & Biosciences segment develops and produces enzymes, food cultures, probiotics, and specialty ingredients.


The Pharma Solutions segment produces and sells cellulosics and seaweed-based pharma excipients.The company sells its products primarily to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, cleaning products, dairy, meat and other processed foods, beverages, snacks and savory foods, sweet and baked goods, dietary supplements, infant and elderly nutrition, functional food, and pharmaceutical excipients and oral care products.International Flavors & Fragrances Inc.


was founded in 1833 and is headquartered in New York, New York.

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1.b. Last Insights on IFF

International Flavors & Fragrances Inc.'s recent performance was positively driven by its Q3 2025 earnings beat, with EPS of $1.05 surpassing estimates. The company's sales reached $2.7 billion, with operating EBITDA margin at 19.3%. IFF's dividend declaration of $0.40 per share and introduction of a smart dosing robot to enhance fragrance production also contributed positively. Additionally, executive appointments, such as Deborah Borg to Mativ's Board of Directors, reflect the company's strong leadership. (Source: Bloomberg)

1.c. Company Highlights

2. IFF's Q3 2025 Earnings: A Strong Performance Amidst a Challenging Environment

IFF reported revenue of nearly $2.7 billion, with adjusted operating EBITDA of $519 million, a 7% increase, and an adjusted EBITDA margin of 19.3%. Earnings per share (EPS) came in at $1.05, beating estimates of $1.02. The company's cash flow from operations totaled $532 million year-to-date, with CapEx of $406 million or roughly 5% of sales. Free cash flow in the third quarter was $126 million, and the company is expecting to be modestly below the $500 million target due to higher inventories and one-time costs.

Publication Date: Nov -16

📋 Highlights
  • Adjusted Operating EBITDA Growth:: 7% increase to $519 million with a 19.3% margin, up 130 bps.
  • Revenue Performance:: $2.7 billion in Q3, driven by mid-single-digit Scent growth and low single-digit Taste growth.
  • Strategic Investments:: $406 million in CapEx (5% of sales) for facilities like Dubai Scent center and Florida Citrus Innovation Center.
  • Free Cash Flow:: $126 million in Q3, with year-to-date cash flow at $532 million, expected to improve in Q4.
  • Full-Year Guidance:: Sales of $10.6–$10.9 billion and adjusted EBITDA of $2–$2.15 billion reaffirmed.

Segment Performance

The Scent and Taste businesses delivered solid growth, with mid-single-digit growth in Scent and low single-digit growth in Taste. The company's investments in strategic initiatives, including the opening of a Scent creative center in Dubai and a Citrus Innovation Center in Florida, are expected to increase the commercial pipeline and drive growth in 2026 and beyond. As Jon Erik Fyrwald stated, "these investments are increasing the commercial pipeline that will start to bear fruit in mid- to late 2026 and into 2027."

Guidance and Outlook

IFF reiterated its full-year 2025 guidance, expecting sales to be in the range of $10.6 billion to $10.9 billion and adjusted operating EBITDA to be between $2 billion and $2.15 billion. Looking ahead to 2026, the company is cautious about the 1% growth environment but is focused on driving profitability improvement through streamlining corporate functions, leveraging automation, and redesigning processes.

Valuation

With a P/E Ratio of -40.94 and an EV/EBITDA of 32.73, the market is pricing in a challenging environment for IFF. However, the company's strong innovation pipeline, clear strategy, and focus on serving customers and consumers could drive growth in the long term. Analysts estimate next year's revenue growth at -1.6%, but IFF's diversified portfolio and cost-saving initiatives could help mitigate the impact of a slow growth environment.

Cash Flow and Share Repurchase

IFF started its $500 million share repurchase program on October 1 and will offset dilution, with some flexibility to increase or decrease purchases. The company's free cash flow yield is 3.88%, indicating a relatively attractive valuation. With a net debt to EBITDA ratio of 8.56, IFF has a significant amount of debt, but its cash flow generation and share repurchase program could help reduce leverage over time.

3. NewsRoom

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International Flavors & Fragrances Inc. (NYSE:IFF) Receives Average Rating of “Moderate Buy” from Analysts

Dec -04

Source: defenseworld.net

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Clarkston Capital Partners LLC Takes Position in International Flavors & Fragrances Inc. $IFF

Nov -28

Source: defenseworld.net

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Mativ Announces Appointment of Seasoned Executive to Its Board of Directors

Nov -24

Source: businesswire.com

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IFF Introduces Smart Dosing Robot to Transform Fragrance Production

Nov -24

Source: businesswire.com

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FPA Global Equity ETF: 5 Companies That Impacted Q3  2025 Performance

Nov -18

Source: seekingalpha.com

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International Markets and International Flavors (IFF): A Deep Dive for Investors

Nov -17

Source: zacks.com

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Touchstone Dividend Equity Fund Q3 2025 Portfolio Review

Nov -13

Source: seekingalpha.com

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Sarah Ketterer's Strategic Move: iShares MSCI EAFE ETF Takes Center Stage with 6.11% Portfolio Impact

Nov -13

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (0.00%)

6. Segments

Nourish

Expected Growth: 1.0%

The growth is driven by the increasing demand for natural ingredients and flavors in the food and beverage industry, coupled with the segment's ability to innovate and adapt to changing consumer preferences, thus slightly outpacing the global growth hypothesis of 0.0%.

Scent

Expected Growth: 0.5%

The Scent segment is expected to grow at a moderate rate, driven by the increasing demand for premium fragrances and home care products, although the growth is somewhat constrained by the global economic uncertainty, resulting in a growth rate slightly above the global hypothesis.

Health & Biosciences

Expected Growth: 2.0%

The Health & Biosciences segment is expected to be a key growth driver, driven by the increasing demand for health and wellness products, as well as the segment's ability to innovate and develop new solutions, resulting in a growth rate significantly above the global hypothesis.

Pharma Solutions

Expected Growth: 8.0%

The growing demand for pharmaceuticals, coupled with increasing focus on patient adherence, drives the need for innovative solutions, positioning Pharma Solutions for growth.

7. Detailed Products

Flavor Compounds

A wide range of natural and synthetic flavor compounds used in food, beverages, and pharmaceuticals

Fragrance Ingredients

A variety of natural and synthetic fragrance ingredients used in perfumes, cosmetics, and personal care products

Taste Modulation

A range of ingredients that modify or enhance the taste of food and beverages

Sensory Solutions

A range of ingredients and technologies that enhance the sensory experience of food, beverages, and personal care products

Natural Ingredients

A range of natural ingredients, including essential oils, extracts, and botanicals, used in food, beverages, and personal care products

Fragrance Creation

Custom fragrance creation services for perfumes, cosmetics, and personal care products

Flavor Creation

Custom flavor creation services for food and beverages

8. International Flavors & Fragrances Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for International Flavors & Fragrances Inc. is medium due to the presence of natural flavor alternatives and the increasing demand for clean label products.

Bargaining Power Of Customers

The bargaining power of customers for International Flavors & Fragrances Inc. is low due to the company's strong relationships with its customers and its ability to provide customized flavor solutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers for International Flavors & Fragrances Inc. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for International Flavors & Fragrances Inc. is low due to the high barriers to entry in the flavor and fragrance industry, including the need for significant capital investment and expertise.

Intensity Of Rivalry

The intensity of rivalry for International Flavors & Fragrances Inc. is high due to the presence of several major players in the flavor and fragrance industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 41.02%
Debt Cost 3.95%
Equity Weight 58.98%
Equity Cost 10.05%
WACC 7.55%
Leverage 69.56%

11. Quality Control: International Flavors & Fragrances Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

66.49$

Current Price

66.49$

Potential

-0.00%

Expected Cash-Flows