IFF reports USD 2.7B sales in Q3 FY25 amid tough operating environment
Despite a challenging market environment, IFF maintained its full-year guidance.
USA – IFF has reported a net sales decline of 8% to USD 2.69 billion in the third quarter of 2025, falling short of the prior year’s robust 9% growth but still exceeding analyst expectations by 2.28%.
The company’s earnings per share (EPS) reached USD 1.05, beating the forecast of USD 1.02 by 2.94%, while adjusted operating EBITDA increased by 7% to USD 519 million, with margins improving by 130 basis points to 19.3%.
Erik Fyrwald, CEO of IFF, stated, “Our third quarter results demonstrate continued execution in a tough operating environment.”
“Profitability in the quarter improved high-single digits year-over-year, with margin expansion driven predominantly by productivity.”
The scents’ net sales grew 5% year-over-year to USD 652 million, driven by a 20% increase in delicate fragrance and low-single-digit growth in consumer fragrance.
Adjusted operating EBITDA for the segment rose 6% to USD 135 million, with continued strategic shift toward higher-value specialties and biotech innovation.
Cash flow from operations totaled USD 532 million year-to-date, with capital expenditures at USD 406 million (about 5% of sales).
Free cash flow for the quarter was USD 126 million.
Dividends paid through the end of Q3 amounted to USD 306 million. Cash and cash equivalents stood at $621 million, while gross debt was approximately USD 6 billion, a USD 200 million reduction from the prior year.
Net debt to credit-adjusted EBITDA ratio remained stable at 2.5 times, with trailing 12-month credit-adjusted EBITDA at USD 2.15 billion.
IFF maintained its full-year guidance, projecting sales between USD 10.6 billion and USD 10.9 billion and adjusted operating EBITDA between USD 2 billion and USD 2.15 billion.
The company continues to focus on productivity, innovation, and strategic investments, including new centers in Dubai and Florida, and the expansion of the LMR Naturals site in Grasse, France.
A share repurchase program and new product launches are also underway to drive future growth.
Despite challenging market conditions, IFF remains confident in its ability to deliver on its targets, supported by strong operational execution and margin improvement initiatives.
The company expects typical seasonality in Q4, with a step down in sales and margin, but maintains a positive outlook for 2026, driven by ongoing innovation and strategic expansion.
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