IFF reports US$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 US$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 US$1.05, beating the forecast of US$1.02 by 2.94%, while adjusted operating EBITDA increased by 7% to US$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 US$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 US$135 million, with continued strategic shift toward higher-value specialties and biotech innovation.
Cash flow from operations totaled US$532 million year-to-date, with capital expenditures at US$406 million (about 5% of sales).
Free cash flow for the quarter was US$126 million.
Dividends paid through the end of Q3 amounted to US$306 million. Cash and cash equivalents stood at US$621 million, while gross debt was approximately US$6 billion, a US$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 US$2.15 billion.
IFF maintained its full-year guidance, projecting sales between US$10.6 billion and US$10.9 billion and adjusted operating EBITDA between US$2 billion and US$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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