# International Flavors & Fragrances (IFF)

Sector: Specialty chemicals: flavors, fragrances and biosciences

| Field | Value |
|---|---|
| Price | $80.38 |
| Market cap | $20B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-13 |
| Next earnings | 2027-02-10 (estimate) |

Analysts: Bullish

Picks: Top pick

Discount category: Below intrinsic value

## In short

The market doubts that IFF can grow its flavor, fragrance and biosciences businesses after the sale of Food Ingredients, and a closed sale with steady growth and lower debt through 2027 can lift its value.

## Themes and gap

- Themes: High debt (leverage), Regulation and courts (regulation-legal), Tariffs and trade (trade-tariffs)
- Gap type: Can close (closable)
- Why: The sale of Food Ingredients, expected to close by the end of Q2 2027, and the Q4 2026 report, expected in February 2027, show whether IFF can lower its debt and grow its remaining business.

## About

International Flavors & Fragrances Inc. (IFF) is based in New York. It makes flavors, fragrances, fragrance ingredients, enzymes, cultures and probiotics for food, beverage, home, personal care and health products. Its continuing operations have three segments: Taste, Health & Biosciences and Scent. It is selling its Food Ingredients business, which it reports as discontinued operations. Net sales of the continuing operations were $1,942 million in Q3 2026 and $5,802 million for nine months. The common stock trades on the NYSE in US dollars. IFF files 10-K and 10-Q reports.

## Thesis

The price of IFF depends on whether the company can grow its remaining businesses and lower its debt after it sells Food Ingredients. In Q3 2026 comparable currency neutral sales grew 5% and adjusted operating EBITDA grew 6%, with growth in Taste and Scent and only 1% sales growth in Health & Biosciences. IFF expects Q4 profitability to be softer, mainly in Health & Biosciences, because of higher costs and reinvestment. For the price to hold or rise, four things must be true. The sale of Food Ingredients to CVC Capital Partners must close by the end of Q2 2027 with net cash proceeds of about $3.8 billion. IFF must use the cash to repay debt and repurchase shares as planned. Taste and Scent must keep their growth, and Health & Biosciences must improve. The fragrance competition investigations in Europe and other countries must not lead to large fines. The Q4 2026 report, expected in February 2027, with its 2027 guidance, is the next test.

## Checkpoints

- Feb 10, 2027 (estimate): Q4 2026 results and 2027 outlook. Status: Pending. Watch: 2026 sales are in the guided range of $7.5 billion to $7.6 billion and adjusted operating EBITDA is in the range of $1.55 billion to $1.60 billion, and this passes; a result below either range fails.
- Q2 2027 (estimate): Sale of Food Ingredients closes. Status: Pending. Watch: The sale closes by the end of Q2 2027 with net cash proceeds of about $3.8 billion, and this passes; a delay past June 2027 or lower proceeds fails.

## Balance sheet

- Cash: $272M
- Debt: $6.3B
- Net debt: $6.0B
- Net debt / EBITDA: 2.8× (medium)
- Debt due within 12 months: $1.5B

At September 30, 2026, IFF had short-term debt and current portion of long-term debt of $1,538 million and long-term debt of $4,735 million, which is $6,273 million in all. Cash and cash equivalents were $272 million. Net debt to credit adjusted EBITDA, which includes the discontinued operations, was 2.75 times. The $1.0 billion term loan that repaid the euro notes due September 2026 matures on December 31, 2027 and must be repaid from the proceeds of the sale of Food Ingredients. Operating cash flow for nine months, including discontinued operations, was $820 million, and free cash flow was $371 million. IFF pays a quarterly dividend of $0.40 per share. Lease liabilities are not in these figures.

As of 2026-09-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/51253/000005125326000041/iff-20260930.htm
- https://www.sec.gov/Archives/edgar/data/51253/000005125326000039/q32026991pressreleaseofiff.htm
- https://www.sec.gov/Archives/edgar/data/51253/000114036126026107/ef20076605_8k.htm

## Dividends

- Dividend yield: 2.0% (last 12 months, at the current price)
- Paid per share, last 12 months: $1.60 (4 payments)
- Current annual rate: $1.60 ($0.40 x 4 a year)
- Latest ex-dividend date: 2026-09-18, $0.40 per share
- Growth from 2020 to 2025: -12.0% a year
- Growth from 2015 to 2025: -2.5% a year

Dividends per share by year: 2016: $2.40, 2017: $2.66, 2018: $2.84, 2019: $2.96, 2020: $3.04, 2021: $3.12, 2022: $3.20, 2023: $3.24, 2024: $1.60, 2025: $1.60.

Source: company filings and market data, read on 2026-11-12.

## Recent events

- 2026-11-03: IFF reported Q3 2026 results. Net sales of the continuing operations rose 4% to $1,942 million and adjusted operating EBITDA was $403 million. The reported loss per share was $0.50, because of a loss of $236 million on assets held for sale and a goodwill impairment of $23 million for the Botanicals and Food Enhancements business, which IFF agreed to sell in July 2026. IFF raised the low end of its 2026 guidance to sales of $7.5 billion to $7.6 billion and adjusted operating EBITDA of $1.55 billion to $1.60 billion.
- 2026-11-02: The board approved one-time incentive awards for some executives that are paid only if the sale of Food Ingredients closes. The award of the chief executive, Erik Fyrwald, is restricted stock units with a value of $700,000 that vest after three years.
- 2026-08-04: IFF announced a share repurchase authorization of $2.5 billion, including an accelerated share repurchase of $500 million. IFF received about 4.8 million shares in Q3 and about 1 million more at the final settlement on November 3, 2026. It expects to use the rest of the authorization after the sale of Food Ingredients closes.
- 2026-06-23: IFF signed a $1.0 billion delayed draw term loan to repay its €800 million of 1.800% senior notes due September 25, 2026. The loan matures on December 31, 2027 and must be repaid from the proceeds of the sale of Food Ingredients.
- 2026-05-29: IFF announced an agreement to sell its Food Ingredients business to affiliates of CVC Capital Partners in a transaction that values the business at about $4.3 billion. IFF expects net cash proceeds of about $3.8 billion and a minority equity interest of about 9.9%, valued at about $200 million.
- 2026-02-05: The Antitrust Division of the US Department of Justice confirmed that it closed its investigation of the fragrance business of IFF. Investigations by the European Commission, the UK Competition and Markets Authority and other regulators continue.

## Latest news and filings

- Last earnings: 2026-11-03 (8-K: https://www.sec.gov/Archives/edgar/data/51253/000005125326000039/)
- Next earnings: 2027-02-10 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-11-03 | 8-K | Change of directors or officers and Change to shareholder rights or bylaws |  |  | https://www.sec.gov/Archives/edgar/data/51253/000114036126041833/ef20084809_8k.htm |
| 2026-11-03 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | iff-20260930 | https://www.sec.gov/Archives/edgar/data/51253/000005125326000041/iff-20260930.htm |
| 2026-11-03 | 8-K | Earnings release |  | iff-20261103 | https://www.sec.gov/Archives/edgar/data/51253/000005125326000039/ |
| 2026-08-04 | 8-K | Investor disclosure |  | iff-20260804 | https://www.sec.gov/Archives/edgar/data/51253/000005125326000032/iff-20260804.htm |
| 2026-08-04 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | iff-20260630 | https://www.sec.gov/Archives/edgar/data/51253/000005125326000030/iff-20260630.htm |
| 2026-08-04 | 8-K | Earnings release and Other company news |  | iff-20260804 | https://www.sec.gov/Archives/edgar/data/51253/000005125326000028/ |
| 2026-06-23 | 8-K | New material agreement and New debt or financial obligation |  |  | https://www.sec.gov/Archives/edgar/data/51253/000114036126026107/ef20076605_8k.htm |
| 2026-06-01 | 8-K | New material agreement and Other company news |  |  | https://www.sec.gov/Archives/edgar/data/51253/000119312526249963/d118591d8k.htm |
| 2026-05-05 | 10-Q | Quarterly report for the period ended Mar 31, 2026 | 2026-03-31 | iff-20260331 | https://www.sec.gov/Archives/edgar/data/51253/000005125326000017/iff-20260331.htm |
| 2026-05-05 | 8-K | Earnings release |  | iff-20260505 | https://www.sec.gov/Archives/edgar/data/51253/000005125326000015/ |

Every filing on SEC EDGAR (CIK 51253): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000051253&type=&dateb=&owner=include&count=40

## Risks

- High: The sale of Food Ingredients may not close on time. It needs regulatory approvals, and either party can end the agreement if the sale does not close by May 28, 2027. A delay would keep debt higher for longer.
- Medium: Debt is high. Total debt was $6,273 million at September 30, 2026, against cash of $272 million. Net debt to credit adjusted EBITDA was 2.75 times.
- Medium: Competition investigations of the fragrance industry continue in Europe, the UK, Switzerland, Mexico and other countries. IFF has applied for leniency in a number of jurisdictions, and fines or civil claims could follow.
- Medium: Health & Biosciences is weak. Its comparable currency neutral sales grew only 1% in Q3 2026, and IFF expects higher costs and reinvestment to lower its Q4 profit.
- Medium: Write-downs and sale losses continue. IFF recorded losses of $263 million on assets held for sale and goodwill impairments of $23 million in the first nine months of 2026.

## Links

- Page: https://picks.utilarium.app/company/IFF/
- History of changes: https://picks.utilarium.app/company/IFF/history/
- JSON with full history: https://picks.utilarium.app/data/company/IFF.json

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