IFF Filings — International Flavors & Fragrances Inc - FilingSpy
IFF
International Flavors & Fragrances Inc
A maker of the flavors, scents, and food ingredients hiding inside everyday products, International Flavors & Fragrances supplies taste compounds for snacks and drinks, fragrance for perfumes and home-care, plus enzymes, cultures, and plant-based proteins for food makers. It was formed in 1958 from the merger of a Dutch flavor house and a U.S. fragrance firm, then grew into one of the world's largest by combining with DuPont's nutrition business in 2021. Its roots reach back to 1889, when two founders began making fruit essences in the Netherlands.
Q2 2026 gross margin reached 43.7%, the highest in the reported quarterly series, on volume and tariff refunds
reached its highest level in the reported quarterly series. rose 1.8% to $1.954B and gross margin expanded 0.7 points to 43.7% as volume, productivity, and tariff refunds offset $107M of divestiture impacts. The company is executing a $2.5B while margin leads the story.
Key takeaways
expanded 80 to 43.7%, driven by volume increases, productivity gains, and tariff refunds, partially offset by portfolio mix changes — the highest quarterly gross margin in the table's history. Q2 sales grew 2% reported to $1.954B, with comparable currency neutral growth of 6% after excluding $107M in divestiture impacts. All three continuing segments grew : +4%, +5%, and +8%, led by volume and pricing. S&A expenses rose 7% to $437M due to higher incentive compensation and regulatory costs, while fell 70% to $6M on lower severance. for the first six months nearly doubled to $679M, driven by improved and a smaller incentive compensation payout. The Board authorized a $2.5B , including a $500M expected in H2 2026, with the remainder after the divestiture.
Section summaries
Management's Discussion and Analysis
Q2 2026 sales rose 2% to $1.95B; comparable currency neutral sales up 6% driven by volume and pricing across all segments.
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Consolidated Q2 sales grew 2% reported to $1.954B, with growth of 6% after excluding $107M in divestiture impacts.
What changed
Q2 2026 of 43.7% compares to 42.9% in Q2 2025 and 37.1% in Q1 2026, extending the flagged as a watch item from the 37.1% Q1 level. Remaining 2025 divestitures (Soy Crush, Concentrates & Lecithin) were excluded from continuing results; Q2 carried $107M of divestiture impacts versus $289M in Q1 2026, with all continuing segments now growing. held at 2.53x from Q1 2026, within limits, against the 2025 step-down path. No recorded liability from U.S. and European antitrust investigations was disclosed in this 10-Q beyond reference to Note 18, restating the 2025 10-K risk with no material change. Q2 2026 revenue of $1.954B fell 28.7% from Q1 2026's $2.741B as the Pharma Solutions and other divestitures took full effect sequentially.
What to watch
Closing of the divestiture and its effect on the $2.5B remainder and stranded costs. Q3 2026 trajectory from the 43.7% Q2 level as volume and input costs move. path from 2.53x against any further 2026 step-downs. Any recorded liability from antitrust investigations per Note 18 in the next filing.
expanded 80 to 43.7%, driven by volume increases, productivity gains, and tariff refunds, partially offset by portfolio mix changes.
All three continuing segments grew sales: +4%, +5%, and +8%, led by volume and pricing.
S&A expenses rose 7% to $437M due to higher incentive compensation and regulatory costs, while restructuring charges fell 70% to $6M on lower severance.
for the first six months nearly doubled to $679M, driven by improved and a smaller incentive compensation payout.
The Board authorized a $2.5B program, including a $500M accelerated buyback expected in H2 2026, with the remainder after the Food Ingredients divestiture.
Quantitative and Qualitative Disclosures About Market Risk
There are no material changes in market risk from the information provided in our 2025 Form 10-K, except for the cross currency swap agreements. We use derivative instruments as part of our interest rate risk management strategy. We have entered into certain cross currency swap…
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There are no material changes in market risk from the information provided in our 2025 Form 10-K, except for the cross currency swap agreements.
We use derivative instruments as part of our interest rate risk management strategy. We have entered into certain cross currency swap agreements in order to mitigate a portion of our net European investments from foreign currency risk. As of June 30, 2026, these swaps were in a net liability position with an aggregate fair value of $194 million. Based on a hypothetical decrease or increase of 10% in the value of the U.S. dollar against the Euro, the estimated fair value of our cross currency swaps would change by approximately $252 million.
For information that updates the disclosures set forth under Part I, Item 3. “Legal Proceedings” in the “2025 Form 10-K”, refer to Note 18 to the “Consolidated Financial Statements” in this Form 10-Q.
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For information that updates the disclosures set forth under Part I, Item 3. “Legal Proceedings” in the “2025 Form 10-K”, refer to Note 18 to the “Consolidated Financial Statements” in this Form 10-Q.
Refer to Part I, Item 1A, “Risk Factors,” of our 2025 Form 10-K and the information contained in this Quarterly Report on Form 10-Q and our other reports and registration statements filed with the SEC. There have been no material changes with respect to the risk factors disclose…
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Refer to Part I, Item 1A, “Risk Factors,” of our 2025 Form 10-K and the information contained in this Quarterly Report on Form 10-Q and our other reports and registration statements filed with the SEC. There have been no material changes with respect to the risk factors disclosed in our 2025 Form 10-K.