Net profit fell by up to 22%—doing business is 'tough' for international raw material suppliers!

Recently, Givaudan, IFF, and DSM-Firmenich—the three major global flavor and fragrance companies—released their 2023 financial reports. Key highlights from these reports are as follows: 1. DSM-Firmenich and IFF both recorded declines in revenue and profit; IFF’s losses widened, while Givaudan’s sales declined by 3% and its operating profit rose slightly by 0.4%. 2. In the flavor and fragrance business segment, both Givaudan and IFF posted sales growth, whereas DSM-Firmenich’s sales dropped by 2.2%. 3. Performance across the Asia-Pacific/China region varied significantly among these international flavor and fragrance companies: Givaudan’s Asia-Pacific sales fell by 4.1%, while DSM-Firmenich achieved 24.2% growth in China. DSM-Firmenich’s flavor and fragrance sales declined by 2.2% In terms of business performance, the three major international flavor and fragrance companies showed slight differences in their flavor and fragrance segments. Specifically, Givaudan’s Fragrance & Beauty division reported 2023 sales growth of 1.7% year-on-year, reaching CHF 3.312 billion (approx. RMB 2.7061 billion). Breaking it down: premium fragrance sales rose by 14%; consumer products sales increased by 7.1%; and fragrance ingredients and active beauty sales grew by 1.0%. Givaudan attributed the 2023 growth in its Fragrance & Beauty division to two main factors: stronger performance in premium fragrances and consumer products, and rising raw material prices. IFF’s Home & Personal Care fragrance and flavor division generated USD 2.393 billion (approx. RMB 1.7222 billion) in 2023 revenue and USD 461 million (approx. RMB 331.8 million) in adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), representing increases of 4.0% and 9.0%, respectively. IFF stated that this division’s growth was driven by higher product volumes, rising raw material prices, and improved productivity. DSM-Firmenich’s Fragrance & Beauty division reported a 2.2% year-on-year decline in sales, while its adjusted EBITDA rose 4.7% year-on-year. Specifically, sales across all sub-segments grew: organic sales in the fragrance segment rose 1%; consumer fragrance sales surged rapidly in Q2 due to innovation and expansion of product portfolios; and personal care sales increased, supported by heightened demand for sun protection, skin care, and hair care products. Regarding the sales decline in its Fragrance & Beauty division, DSM-Firmenich cited three primary reasons in its financial report: raw material inventory destocking, weak industrial demand, and the closure of its Pinova plant in Georgia, USA. -4.1% and -12.1%: Givaudan’s Asia-Pacific and North America regions both declined Regionally, the three flavor and fragrance companies delivered mixed results in the Asia-Pacific/China market: DSM-Firmenich achieved 24.2% growth in China, while Givaudan’s Asia-Pacific sales fell by 4.1%. In 2023, Givaudan experienced sales declines in both North America and the Asia-Pacific region, whereas Latin America and EAME (Europe, Africa, and Middle East) posted growth. Specifically, Givaudan’s Asia-Pacific sales totaled CHF 1.698 billion (approx. RMB 1.3882 billion), down 4.1% year-on-year. North America sales declined by 12.1%, while Latin America and EAME rose by 1.1% and 3.4%, respectively.

Revenue reached RMB 40 billion in six months—IFF ‘held steady’!

Recently, International Flavors & Fragrances Inc. (IFF) announced its financial results for the second quarter of fiscal year 2025, along with core financial data for the first half of the year. From a financial performance perspective: 1. Revenue Total revenue for the first six months of FY2025 amounted to USD 5.607 billion (approx. RMB 4.0008 billion), down 3.13% year-on-year from USD 5.788 billion in the same period last year. Second-quarter sales reached USD 2.764 billion (approx. RMB 1.9722 billion), a 4% decline year-on-year—but sales growth rose 3% after excluding foreign exchange effects. 2. Profit Cumulative net loss for the first six months of FY2025 stood at USD 405 million, compared to cumulative net income of USD 233 million in the same period last year. Pre-tax profit for the second quarter was USD 534 million, and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was USD 552 million (approx. RMB 3.939 billion); on a currency-neutral basis, adjusted EBITDA grew 6% year-on-year. This loss may stem from costs related to business divestitures, rising operational expenses, or underperformance in certain business segments. International Flavors & Fragrances Inc. (IFF) is a global leader in flavors, fragrances, and functional ingredients, delivering sensory experiences and nutritional health solutions to industries including food, beverages, personal care, home care, and pharmaceuticals. In 1889, Josef Polak and Leopold Schwarz co-founded Pollak & Schwarz in the Netherlands—a company producing fruit flavors and essential oils—which soon became Europe’s leading flavor producer at the time. Early in World War II, the company merged with U.S.-based Van Ameringen-Haebler, Inc., which specialized in perfumery. In 1958, the global businesses were fully consolidated under the new name International Flavors & Fragrances (IFF). By business segment: ① Taste Segment Second-quarter revenue reached USD 631 million, with broad-based growth across all regions. Adjusted EBITDA stood at USD 125 million. The second-quarter adjusted operating EBITDA margin was 19.8%. On a comparable basis, operating EBITDA grew 3% after adjusting for foreign exchange effects.

International Flavors & Fragrances Double-Downgraded to Underperform by BofA

1 day ago

Bank of America downgraded International Flavors & Fragrances to Underperform, causing a 3.3% stock drop. Analysts cited a lack of near-term catalysts and trimmed the price target to $91.

Seeking Alpha

2026-04-07

BNP Paribas Exane Lowers Price Target for International Flavors & Fragrances (NYSE:IFF)

2026-04-07

International Flavors & Fragrances Inc. Stock Underperforms on Tuesday

2026-04-08

International Flavors & Fragrances Inc. Given Consensus Recommendation of "Moderate Buy" by Analysts

2026-04-09

OFI Invest Asset Management Reduces Stake in International Flavors & Fragrances

2026-04-10

Douglas Lane & Associates LLC Sells 39,607 Shares of International Flavors & Fragrances Inc.