NYSE:IFF
INTERNATIONAL FLAVORS & FRAGRANCES INC
A diversified global supplier of flavors and fragrances facing recent profitability headwinds while maintaining a massive product portfolio.
Key Metrics
Investment Thesis
Bull Case
Investors may view IFF as a value play given its dominant market position and massive intangible assets worth $8.27B in goodwill that could be accretive upon future consolidation or cost restructuring initiatives.
Bear Case
The stock faces severe caution due to consecutive years of negative net income, substantial cash outflows from financing activities totaling over $3B, and a retained earnings deficit exceeding $3.4B which limits financial flexibility.
About INTERNATIONAL FLAVORS & FRAGRANCES INC
IFF is a global leader in flavors and fragrances serving food, beverage, personal care, and home care markets with over 14,000 products. The company leverages its extensive portfolio of raw materials to innovate sustainable solutions across consumer goods sectors.
Analysis
Management Discussion
Despite a revenue decline from $12.44B to $10.89B over the last two years, the company recorded a turnaround profit of $247M in 2024 before slipping back to a net loss of $359M in 2025, suggesting ongoing operational volatility.
Industry Overview
The flavors and fragrances industry is highly competitive with rising consumer demand for natural and sustainable ingredients, requiring continuous innovation to maintain market share against private label growth.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $12.44B | $11.48B | $11.48B | $10.89B |
| Cost of Revenue | $8.29B | $7.80B | $7.36B | $6.95B |
| Gross Profit | $4.15B | $3.68B | $4.12B | $3.94B |
| Operating Expenses | $5.48B | $5.79B | $3.36B | $4.32B |
| Operating Income | $-1.33B | $-2.11B | $766.0M | $-382.0M |
| R&D | $603.0M | $636.0M | $671.0M | $694.0M |
| G&A | $1.77B | $1.79B | $2.00B | $1.83B |
| Stock-Based Comp | $49.0M | $65.0M | $77.0M | $88.0M |
| D&A | $1.18B | $1.14B | $1.01B | $962.0M |
| Depreciation | $452.0M | $462.0M | $405.0M | $394.0M |
| Amortization | $727.0M | $680.0M | $610.0M | $568.0M |
| Other OpEx | $3.11B | $3.37B | $692.0M | $1.79B |
| Non-Operating Income | $-299.0M | $-408.0M | $-488.0M | $-30.0M |
| Interest Expense | $336.0M | $380.0M | — | — |
| Interest Income | — | $5.0M | $15.0M | $19.0M |
| Pre-Tax Income | $-1.62B | $-2.52B | $278.0M | $-412.0M |
| Income Tax | $239.0M | $45.0M | $31.0M | $-53.0M |
| Continuing Ops | $-1.86B | $-2.56B | $247.0M | $-359.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-1.86B | $-2.56B | $247.0M | $-359.0M |
| Minority Interest | $7.0M | $4.0M | $4.0M | $2.0M |
| Net to Common | $-1.87B | $-2.57B | $243.0M | $-361.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $7.43B | $6.29B | $7.99B | $5.59B |
| Cash & Equivalents | $483.0M | $703.0M | $469.0M | $590.0M |
| Inventory | $3.15B | $2.48B | $2.13B | $2.25B |
| Other Current Assets | $3.80B | $3.11B | $5.39B | $2.76B |
| Long-Term Assets | $27.98B | $24.68B | $20.67B | $19.95B |
| PP&E (Net) | $4.20B | $4.24B | $3.74B | $4.03B |
| Goodwill | $13.36B | $10.63B | $9.08B | $8.27B |
| Operating Leases | $636.0M | $689.0M | $573.0M | $579.0M |
| Other LT Assets | $9.77B | $9.11B | $7.27B | $7.05B |
| Total Assets | $35.41B | $30.98B | $28.67B | $25.54B |
| Current Liabilities | $3.73B | $3.76B | $4.33B | $3.93B |
| Accounts Payable | $1.42B | $1.38B | $1.28B | $1.29B |
| Current Debt | $597.0M | $885.0M | $1.41B | $1.25B |
| Current Leases | $86.0M | $85.0M | $82.0M | $92.0M |
| Taxes Payable | $313.0M | $194.0M | $131.0M | $180.0M |
| Other Current Liab | $1.11B | $1.01B | $1.32B | $1.02B |
| Long-Term Liabilities | $13.96B | $12.58B | $10.42B | $7.42B |
| Long-Term Debt | $10.37B | $9.19B | $7.56B | $4.74B |
| LT Operating Leases | $565.0M | $642.0M | $534.0M | $533.0M |
| Other LT Liab | $2.84B | $2.75B | $2.33B | $1.83B |
| Total Liabilities | $17.69B | $16.34B | $14.76B | $11.35B |
| Shareholders' Equity | $17.71B | $14.64B | $13.91B | $14.19B |
| Retained Earnings | $955.0M | $-2.44B | $-2.60B | $-3.42B |
| AOCI | $-2.17B | $-1.90B | $-2.53B | $-1.43B |
| Treasury Stock | $978.0M | $963.0M | $944.0M | $952.0M |
| Total L&E | $35.41B | $30.98B | $28.67B | $25.54B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-1.86B | $-2.56B | $247.0M | $-359.0M |
| Non-Cash Adjustments | $1.21B | $4.53B | $595.0M | $1.23B |
| Working Capital Changes | $1.05B | $-529.0M | $228.0M | $-20.0M |
| Cash from Operations | $397.0M | $1.44B | $1.07B | $850.0M |
| Capital Expenditures | $504.0M | $503.0M | $463.0M | $594.0M |
| Cash from Investing | $745.0M | $574.0M | $326.0M | $2.27B |
| Debt Issuances | $0 | $0 | — | — |
| Debt Repayments | $300.0M | $655.0M | $1.03B | $2.91B |
| Share Buybacks | — | — | — | $38.0M |
| Dividends Paid | $810.0M | $826.0M | $514.0M | $409.0M |
| Cash from Financing | $-1.23B | $-1.85B | $-1.61B | $-3.09B |
| FX Effect | $-77.0M | $21.0M | $-54.0M | $91.0M |
| Net Change in Cash | $-164.0M | $183.0M | $-264.0M | $119.0M |
| Beginning Cash | $716.0M | $552.0M | $709.0M | $469.0M |
| Ending Cash | $552.0M | $735.0M | $469.0M | $590.0M |
Frequently Asked Questions
How does INTERNATIONAL FLAVORS & FRAGRANCES INC make money?
Revenue is driven by food ingredients, beverages, personal care, home care, and industrial applications, supported by significant R&D investments of $694M to maintain innovation leadership.
What are the main risks for IFF?
High exposure to volatile commodity prices for essential ingredients, persistent net operating losses indicating potential margin compression or structural issues, significant debt load with $4.74B in long-term obligations, and currency headwinds impacting global margins.
What is IFF's competitive advantage?
The company possesses an unparalleled proprietary raw material portfolio, extensive global distribution network, and deep customer relationships built on consistent quality and regulatory expertise.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.