IFF reports US$374M net loss in 2025
Portfolio restructuring and divestitures reshape IFF’s strategy following DuPont nutrition merger and ongoing debt reduction efforts.
USA – International Flavors & Fragrances (IFF) reported a full-year net loss of US$374 million for 2025 after recording a US$1.15 billion goodwill write-down tied to its Food Ingredients segment, which the company has formally placed under review and is actively seeking to sell.
The impairment reflects the company’s revised valuation of the business, originally acquired as part of its US$26 billion merger with DuPont’s nutrition and biosciences division in 2021.
Despite the loss, IFF reported underlying business growth, with adjusted operating profit reaching US$2.09 billion and currency-adjusted growth of 2%. Full-year reported sales totaled US$10.89 billion, representing a 5% decline compared with the previous year.
The Food Ingredients segment generated US$3.28 billion in revenue, with currency-adjusted sales declining 3% due to weaker performance in Protein Solutions.
However, adjusted operating profit for the segment increased 10%, supported by cost-cutting initiatives and margin improvement measures.
IFF confirmed that the Food Ingredients unit has been under strategic review since August, with the goodwill write-down reflecting expectations tied to the planned divestiture. The potential sale marks the latest step in a series of portfolio restructuring actions following the DuPont merger.
CEO Erik Fyrwald said the company has prioritized strategic realignment through asset sales. “We also took steps to optimize our portfolio. Through several divestitures and the recent launch of a sale process for our Food Ingredients segment, we sharpened our strategic focus and improved our financial flexibility, allowing us to direct resources to our highest-value businesses,” Fyrwald said.
IFF has completed several divestitures over the past year, including the sale of its Pharma Solutions business to Roquette and the disposal of its nitrocellulose operations.
The company also agreed to sell its soy crush, concentrates, and lecithin business to Bunge, with the transaction expected to close by March 2026.
Earlier divestitures included the Savory Solutions group, Flavor Specialty Ingredients, and Cosmetic Ingredients businesses.
IFF’s flavors division delivered stronger performance, with currency-adjusted growth of 4% driven by gains across all regions.
The company has expanded citrus research and development capabilities and introduced new flavor innovation initiatives through its Tastepoint division. These efforts come amid ongoing supply chain volatility affecting citrus raw materials and broader ingredient sourcing.
The company also strengthened its balance sheet by repaying US$2.9 billion in debt during 2025, reducing its leverage ratio to 2.6 times from over four times following the DuPont merger.
IFF recorded a US$488 million gain from retiring debt at a discount, further improving its financial position.
Looking ahead, IFF expects 2026 sales between US$10.5 billion and US$10.8 billion and adjusted operating profit ranging from US$2.05 billion to US$2.15 billion.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
