IFF posts lower Q2 sales amid weaker volumes

IFF reports a year-on-year sales decline for the second quarter of 2025, citing softer demand and unfavorable volume trends across key segments.

The company says net sales for the quarter fell to US$2.82 billion from US$2.96 billion a year earlier. Comparable currency-neutral sales were down 3%, driven primarily by a mid-single-digit volume decline.

Net income attributable to shareholders came in at US$142 million, compared with US$150 million in the prior-year quarter. Adjusted operating EBITDA fell 4% to US$516 million.

CEO Erik Fyrwald says performance was pressured by challenging macroeconomic conditions and continued destocking by customers, particularly in flavors and fragrances. He notes that productivity initiatives and pricing actions helped offset some of the volume decline.

IFF also announced the sale of its soy crush, concentrates, and lecithin business to Bunge, with the transaction closing by year-end 2025. The sale aligns with IFF’s strategy to optimize its Food Ingredients portfolio and enhance shareholder value. Financial terms of the deal have not been disclosed.

Looking ahead, the company reaffirms its full-year 2025 sales outlook of US$11.1–11.3 billion and adjusted operating EBITDA of US$2–2.1 billion, expecting sequential improvement in the second half.