IFF reports strong Q1 FY26 results with USD 2.7B in sales
The performance shows solid execution and steady operations within the company.
USA – IFF has reported a solid start to 2026, with first-quarter volume growth in all four segments, better profitability, and higher cash generation.
The company posted an adjusted operating EBITDA of USD 568 million, and the margin improved to 20.7%, while it kept its full-year outlook unchanged.
The net sales for the quarter were USD 2.74 billion, down 4% from a year earlier, but comparable currency-neutral sales rose 3% on broad-based growth across the business.
Income before taxes came in at USD 209 million, reported EPS was USD 0.66, and adjusted EPS excluding amortization was USD 1.25 per diluted share.
The adjusted operating EBITDA on a comparable currency-neutral basis improved 8% year over year, driven by volume growth and productivity gains.
Cash flow strengthened sharply in the period, with cash flows from operations rising to USD 257 million, up USD 130 million from the prior year, and free cash flow reaching USD 92 million, up USD 144 million.
Erik Fyrwald, CEO of IFF, stated, “IFF is off to a solid start in 2026, with first quarter results that reflect the customer focus and operational execution we’ve been building across the company.”
“We delivered volume growth in all four segments, improved profitability, and generated strong cash flow in the first quarter.”
At quarter-end, total debt to trailing twelve months net income stood at 7.2x, while net debt to credit-adjusted EBITDA was 2.5x.
By segment, Scent sales rose 1% on a comparable basis, but EBITDA was lower because volume gains and productivity were not enough to offset unfavourable price-to-input costs.
Health & Biosciences reported sales of USD 595 million, up 5% on a comparable currency-neutral basis, while adjusted operating EBITDA margin reached 25.7%.
Food Ingredients delivered comparable currency-neutral sales growth of 3%, with adjusted EBITDA up 12% and margin at 13.6%.
Meanwhile, Taste posted sales of USD 656 million and an adjusted operating EBITDA margin of 23.3%, with comparable currency-neutral sales up 2% and EBITDA up 18%.
For 2026, IFF reaffirmed guidance for net sales of USD 10.5 billion to USD 10.8 billion and adjusted operating EBITDA of USD 2.05 billion to USD 2.15 billion.
It has also maintained expectations for comparable currency-neutral sales growth of 1% to 4% and comparable currency-neutral adjusted operating EBITDA growth of 3% to 8%.
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