INTERNATIONAL FLAVORS & FRAGRANCES INCIFF
INTERNATIONAL FLAVORS & FRAGRANCES INC Segments Disclosure
SEGMENT INFORMATION
Effective January 1, 2025, the Company implemented a reorganization of its internal structure, which impacted the way the CODM, the Chief Executive Officer, allocates resources and assesses financial performance. As a result, the Company updated its reportable segments beginning with the first quarter of 2025.
Specifically, the former Nourish segment has been separated into two new reportable segments: Taste and Food Ingredients. The Taste segment (formerly the Flavors business within Nourish) includes flavor compounds and natural taste solutions used in food and beverage applications. The Food Ingredients segment (formerly the Ingredients business within Nourish) includes a broad portfolio of natural and plant-based specialty ingredients that provide texturizing and food protection capabilities, as well as soy and pea protein solutions, emulsifiers, and sweeteners.
In addition, immaterial business transfers occurred between Food Ingredients and Pharma Solutions, and between Health & Biosciences and Taste. Accordingly, the Company’s reportable segments as of January 1, 2025 are: Taste, Food Ingredients, Health & Biosciences, Scent, and Pharma Solutions.
The Company also adjusted its corporate cost allocations to align with the new organizational structure and updated operating model, consistent with how management assesses performance effective January 1, 2025.
Segment information for the year ended December 31, 2024 and 2023 has been recast to reflect the updated segment structure and changes in corporate allocations among the Company’s reportable segments on a comparable basis.
Taste is comprised of a range of flavor compounds and natural taste solutions that are ultimately used by IFF's customers in a diverse variety of products, including savory products (soups, sauces, meat, fish, poultry, snacks, etc.), beverages (juice drinks, carbonated or flavored beverages, spirits, etc.), sweets (bakery products, candy, cereal, chewing gum, etc.), and dairy products (yogurt, ice cream, cheese, etc.). Taste also include value-added spices and seasoning ingredients for meat, food service, convenience, alternative protein and culinary products.
Food Ingredients is comprised of a diversified portfolio across natural, artificial, and plant-based specialty food ingredients that provide functional properties solutions for food and beverage products, as well as specialty soy and pea protein with value-added formulations, emulsifiers and sweeteners. Natural food protection ingredients consist of natural antioxidants and anti-microbials used for natural food preservation and shelf-life extension for beverages, cosmetic and healthcare products, pet food and feed additives. Food Ingredients also includes savory solutions (such as spices, marinades, mixtures) and inclusion products (such as products combining flavorings with fruit, vegetables and other natural ingredients).
Health & Biosciences is comprised of Health, Food Biosciences, Home & Personal Care, Animal Nutrition and Grain Processing, with a biotechnology-derived portfolio of enzymes, food cultures, probiotics and specialty ingredients for non-food applications. Health provides ingredients for dietary supplements, food and beverage, specialized nutrition and pharma. Food Biosciences provides products that aim to serve the global demand for healthy, natural, clean label and fermented food for fresh dairy, cheese, bakery and brewing products. Such products contribute to extended shelf life, stability, taste, and texture, helping IFF's customers to improve their product offerings. The business's enzyme solutions also allow IFF’s customers to provide low sugar, high fiber and lactose-free dairy products. Home & Personal Care produces enzymes for detergents, cleaning and textiles to help enhance the product and process performance of products in the fabric and home care, textiles and industrials and personal care markets. The business also produces patented enzymatic polymers that are renewable, biodegradable alternatives to functional ingredients used in home cleaning and beauty care products. Animal Nutrition produces feed enzymes and animal
health solutions that help to improve nutrition, welfare, performance and sustainability of livestock animal farming. Grain Processing produces yeast and enzymes for biofuel production and carbohydrate processing.
Scent is comprised of (1) Fragrance Compounds, which are ultimately used by IFF’s customers in two broad categories: Fine Fragrances, including perfumes and colognes, and Consumer Fragrances, including fragrance compounds for personal care (e.g., soaps), household products (e.g., detergents and cleaning agents) and beauty care, including toiletries; and (2) Fragrance Ingredients, which consists of natural and synthetic, and active and functional ingredients that are used internally and sold to third parties, including competitors, for use in the preparation of compounds. While the principal role of IFF's fragrance ingredients facilities is to support the fragrance compounds business, the Company utilizes excess manufacturing capacity to manufacture and sell certain fragrance ingredients to third parties, enabling the Company to leverage fixed costs while maintaining the security of supply for perfumers and ultimately IFF's customers.
The former Pharma Solutions segment produced, among other things, a vast portfolio of cellulosics and seaweed-based pharmaceutical excipients, used in prescription and over-the-counter pharmaceuticals and dietary supplements. IFF completed the divestiture of the Pharma Solutions disposal group, which included certain adjacent businesses, on May 1, 2025 and divested the nitrocellulose business, which was within the Pharma Solutions segment, on May 9, 2025.
The Company’s CODM evaluates the performance of these reportable segments based on its Adjusted Operating EBITDA, which is defined as (Loss) Income Before Taxes before depreciation and amortization expense, interest expense, restructuring and other charges and certain items that are not related to recurring operations.
The Company’s CODM uses Adjusted Operating EBITDA to evaluate segment performance in deciding whether to reinvest resources into the respective segment or into other parts of the entity. Budget versus actual results of Adjusted Operating EBITDA is used in assessing performance of the segment and in establishing certain compensation payouts. The Company’s CODM also uses Adjusted Operating EBITDA in competitive analysis by benchmarking to the Company’s competitors.
The Company’s CODM does not use assets by segment to evaluate segment performance or allocate resources and thus, total assets by segment are not disclosed.
The following tables show the Company’s reportable segment information for the years ended December 31, 2025, 2024 and 2023:
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Taste | Food Ingredients | H&B | Scent | Pharma | Total | ||||||||||||||||||||||||||||||
| Net sales | $ | 2,481 | $ | 3,278 | $ | 2,283 | $ | 2,479 | $ | 369 | $ | 10,890 | |||||||||||||||||||||||
| Cost of sales | (1,500) | (2,531) | (1,246) | (1,424) | (248) | ||||||||||||||||||||||||||||||
| Research & development expenses | (172) | (54) | (219) | (241) | (8) | ||||||||||||||||||||||||||||||
| Selling & administrative expenses | (396) | (400) | (348) | (366) | (42) | ||||||||||||||||||||||||||||||
| Depreciation expense add-back (a) | 65 | 130 | 124 | 67 | 5 | ||||||||||||||||||||||||||||||
| Adjusted Operating EBITDA | $ | 478 | $ | 423 | $ | 594 | $ | 515 | $ | 76 | $ | 2,086 | |||||||||||||||||||||||
| Reconciliation of Adjusted Operating EBITDA: | |||||
| Total Adjusted Operating EBITDA | $ | 2,086 | |||
| Depreciation & Amortization | (962) | ||||
| Interest Expense | (229) | ||||
| Other (Expense), net (b) | (65) | ||||
| Restructuring and Other Charges (c) | (70) | ||||
| Impairment of Goodwill (d) | (1,153) | ||||
| (Losses) on Business Disposals (e) | (109) | ||||
| Loss on Assets Classified as Held for Sale (f) | (115) | ||||
| Gain on Extinguishment of Debt (g) | 488 | ||||
| Acquisition, Divestiture and Integration Related Costs (h) | (125) | ||||
| Strategic Initiatives Costs (i) | (35) | ||||
| Regulatory Costs (j) | (106) | ||||
| Entity Realignment Costs (k) | (8) | ||||
| Other (l) | (9) | ||||
| (Loss) Before Taxes | $ | (412) | |||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Taste | Food Ingredients | H&B | Scent | Pharma | Total | ||||||||||||||||||||||||||||||
| Net sales | $ | 2,428 | $ | 3,365 | $ | 2,203 | $ | 2,439 | $ | 1,049 | $ | 11,484 | |||||||||||||||||||||||
| Cost of sales | (1,470) | (2,626) | (1,183) | (1,361) | (719) | ||||||||||||||||||||||||||||||
| Research & development expenses | (160) | (71) | (190) | (225) | (25) | ||||||||||||||||||||||||||||||
| Selling & administrative expenses | (403) | (391) | (368) | (376) | (115) | ||||||||||||||||||||||||||||||
| Depreciation expense add-back (a) | 65 | 131 | 115 | 68 | 25 | ||||||||||||||||||||||||||||||
| Adjusted Operating EBITDA | $ | 460 | $ | 408 | $ | 577 | $ | 545 | $ | 215 | $2,205 | ||||||||||||||||||||||||
| Reconciliation of Adjusted Operating EBITDA: | |||||
| Total Adjusted Operating EBITDA | $ | 2,205 | |||
| Depreciation & Amortization | (1,015) | ||||
| Interest Expense | (305) | ||||
| Other (Expense), net (b) | (182) | ||||
| Restructuring and Other Charges (c) | (29) | ||||
| Impairment of Goodwill (d) | (64) | ||||
| Gains on Business Disposals (e) | 346 | ||||
| Loss on Assets Classified as Held for Sale (f) | (317) | ||||
| Acquisition, Divestiture and Integration Related Costs (h) | (228) | ||||
| Strategic Initiatives Costs (i) | (33) | ||||
| Regulatory Costs (j) | (73) | ||||
| Entity Realignment Costs (k) | (6) | ||||
| Other (l) | 9 | ||||
| Income Before Taxes | $ | 308 | |||
| December 31, 2023 | |||||||||||||||||||||||||||||||||||
| Taste | Food Ingredients | H&B | Scent | Pharma | Total | ||||||||||||||||||||||||||||||
| Net sales | $ | 2,303 | $ | 3,692 | $ | 2,071 | $ | 2,393 | $ | 1,020 | $ | 11,479 | |||||||||||||||||||||||
| Cost of sales | (1,449) | (3,028) | (1,168) | (1,401) | (752) | ||||||||||||||||||||||||||||||
| Research & development expenses | (154) | (70) | (172) | (213) | (26) | ||||||||||||||||||||||||||||||
| Selling & administrative expenses | (379) | (385) | (320) | (343) | (99) | ||||||||||||||||||||||||||||||
| Depreciation expense add-back (a) | 68 | 160 | 113 | 60 | 59 | ||||||||||||||||||||||||||||||
| Adjusted Operating EBITDA | $ | 389 | $ | 369 | $ | 524 | $ | 496 | $ | 202 | $ | 1,980 | |||||||||||||||||||||||
| Reconciliation of Adjusted Operating EBITDA: | |||||
| Total Adjusted Operating EBITDA | $ | 1,980 | |||
| Depreciation & Amortization | (1,142) | ||||
| Interest Expense | (380) | ||||
| Other (Expense), net (b) | (5) | ||||
| Restructuring and Other Charges (c) | (68) | ||||
| Impairment of Goodwill (d) | (2,623) | ||||
| (Losses) on Business Disposals (e) | (23) | ||||
| Acquisition, Divestiture and Integration Related Costs (h) | (174) | ||||
| Strategic Initiatives Costs (i) | (31) | ||||
| Regulatory Costs (j) | (50) | ||||
| Entity Realignment Costs (k) | (2) | ||||
| (Loss) Before Taxes | $ | (2,518) | |||
_______________________
| (a) | There is depreciation recorded within Cost of sales, Research & development, and Selling & administrative expenses, so there is an add-back of depreciation to calculate segment Adjusted Operating EBITDA. This reflects how the CODM reviews Segment results. | ||||
| (b) | For 2024, the amount includes a settlement loss of $130 million that was recognized as a result of the termination of the International Flavors & Fragrances Inc. Pension Plan. During 2025, a reduction of the previous settlement loss was recognized. See Note 8 for additional information on the net settlement loss and Note 9 for additional information on Other expense, net. | ||||
| (c) | For 2025, represents costs related to the IFF Productivity Program including severance, fixed asset write-downs and site closure expenses, net of the gain on sale of fixed assets previously written down. For 2024, represents initial costs in connection with the IFF Productivity Program, primarily related to fixed asset write-downs. For 2023, represents costs primarily related to severance as part of the Company’s 2023 Restructuring Program. | ||||
| (d) | For 2025, represents the impairment of goodwill related to the Food Ingredients reporting unit. For 2024, represents the impairment of goodwill related to the Pharma Solutions disposal group. For 2023, represents the impairment of goodwill in the Nourish reporting unit. | ||||
| (e) | For 2025, primarily represents losses recognized as part of the sale of the Pharma Solutions disposal group, offset in part by gains recognized as part of the sale of the Nitrocellulose business and sale of the Rene Laurent business in France. For 2024, primarily represents gains recognized as part of the sale of the Cosmetic Ingredients business and losses recognized as part of the sale of the F&E UK business. For 2023, primarily represents losses recognized as part of the sale of the Flavors Specialty Ingredients business, the sale of a portion of the Savory Solutions business, and liquidation of a business in Russia for the sale of the portion of the Savory Solutions business. | ||||
| (f) | For 2025, represents the loss recognized on assets classified as held for sale of the Soy Crush, Concentrates & Lecithin business. For 2024, represents the losses recognized on assets classified as held for sale of the Pharma Solutions disposal group and portion of the Savory Solutions business in Turkey. | ||||
| (g) | For 2025, represents the gain recognized on extinguishment of debt in connection with the completion of tender offers. | ||||
| (h) | For 2025, 2024 and 2023, primarily represents costs related to the Company's actual and planned acquisitions, divestitures and integration related activities primarily for N&B. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts. For 2023, acquisition costs primarily relate to earn-out adjustments. For 2025, business divestiture costs were approximately $125 million. For 2024, business divestiture and integration costs were approximately $223 million and $5 million, respectively. For 2023, business divestiture, integration and acquisition related costs were approximately $108 million, $59 million, and $7 million, respectively. | ||||
| (i) | Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Shared Services Centers, primarily consulting fees, and strategic initiatives related to the Company’s business unit re-organization efforts. | ||||
| (j) | Represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses. | ||||
| (k) | Represents costs related to a phased restructuring initiative aimed at optimizing its legal entity framework. | ||||
| (l) | For 2025, primarily represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company. For 2025, also represents the impact of legislation changes in India related to the Wage Code. For 2024, primarily relates to gains on sales of assets. | ||||
Long-lived assets, net, by geographic area, consisted as follows:
| December 31, | |||||||||||
| (DOLLARS IN MILLIONS) | 2025 | 2024(1) | |||||||||
| United States | $ | 1,620 | $ | 1,610 | |||||||
| Foreign Countries | 2,409 | 2,129 | |||||||||
| Consolidated | $ | 4,029 | $ | 3,739 | |||||||
_______________________
(1)The Long-lived assets, net for both the United States and Foreign Countries as of December 31, 2024 were revised from $1.326 billion to $1.610 billion and from $2.413 billion to $2.129 billion, respectively, to correct for certain assets incorrectly allocated by geographic area. These revisions did not impact the total Long-lived assets, net.
Segment capital expenditures consisted as follows:
| Capital Expenditures | |||||||||||||||||
| (DOLLARS IN MILLIONS) | 2025 | 2024 | 2023 | ||||||||||||||
| Taste | $ | 99 | $ | 69 | $ | 75 | |||||||||||
| Food Ingredients | 223 | 166 | 177 | ||||||||||||||
| Health & Biosciences | 145 | 73 | 85 | ||||||||||||||
| Scent | 89 | 70 | 62 | ||||||||||||||
| Pharma Solutions | 38 | 85 | 104 | ||||||||||||||
| Consolidated | $ | 594 | $ | 463 | $ | 503 | |||||||||||
Net sales are attributed to individual regions based upon the destination of product delivery and are as follows:
| Net Sales by Geographic Area | |||||||||||||||||
| (DOLLARS IN MILLIONS) | 2025 | 2024 | 2023 | ||||||||||||||
| Europe, Africa and Middle East | $ | 3,727 | $ | 3,840 | $ | 3,834 | |||||||||||
| Greater Asia | 2,546 | 2,731 | 2,677 | ||||||||||||||
| North America | 3,195 | 3,440 | 3,477 | ||||||||||||||
| Latin America | 1,422 | 1,473 | 1,491 | ||||||||||||||
| Consolidated | $ | 10,890 | $ | 11,484 | $ | 11,479 | |||||||||||
| Net Sales by Geographic Area | |||||||||||||||||
| (DOLLARS IN MILLIONS) | 2025 | 2024 | 2023 | ||||||||||||||
| Net sales related to the U.S. | $ | 3,075 | $ | 3,219 | $ | 3,185 | |||||||||||
| Net sales attributed to all foreign countries | 7,815 | 8,265 | 8,294 | ||||||||||||||
The Company had no customers that accounted for greater than 10% of consolidated net sales in 2025, 2024 and 2023.
No country other than the U.S. had net sales greater than 10% of total consolidated net sales for 2025, 2024 and 2023.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Mar 3, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Mar 1, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.