IFF posts full-year net loss as US$1.15B write-down sets stage for Food Ingredients sale
Key takeaways
- IFF reported a full-year 2025 net loss of US$374 million, driven by a US$1.15 billion goodwill write-down on its Food Ingredients segment, which the company has put up for sale.
- Health & Biosciences was the standout performer, posting 26% profit margins and 20% operating profit growth in Q4, driven by demand for cultures, enzymes, and probiotics.
- The company repaid US$2.9 billion in debt during 2025, reducing leverage to 2.6 times earnings, and expects 1–4% underlying sales growth in 2026.
International Flavors & Fragrances (IFF) has reported a full-year net loss of US$374 million for 2025, driven largely by a US$1.15 billion write-down on the value of its Food Ingredients business — a segment the company is now actively putting up for sale. Stripping out one-off charges, the underlying business grew 2% on a currency-adjusted basis and delivered US$2.09 billion in adjusted operating profit. Full-year reported sales came in at US$10.89 billion, down 5% from the prior year.
The write-down — an accounting charge that reduces the stated value of a business when its expected sale price falls below what was originally paid — reflects IFF’s assessment that its Food Ingredients unit is worth less than the figure carried on its books since the 2021 merger with DuPont’s nutrition division. IFF placed the segment under strategic review in August and has since launched a formal sale process, taking a US$1.15 billion goodwill write-down to reflect the planned exit.
IFF divestments
The Food Ingredients sale would mark the latest in a string of divestitures that have reshaped IFF since it absorbed DuPont’s nutrition and biosciences arm in a US$26 billion deal.
Last year, IFF completed the sale of its Pharma Solutions business to Roquette, offloaded its nitrocellulose operations, and agreed to sell its soy crush, concentrates, and lecithin business to Bunge — a deal expected to close by the end of March 2026. Earlier divestitures include the Savory Solutions group, Flavor Specialty Ingredients, and Cosmetic Ingredients businesses.
“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,” says Erik Fyrwald, IFF’s CEO.
The Food Ingredients segment posted US$3.28 billion in full-year revenue. On a currency-adjusted basis, sales fell 3% as softness in Protein Solutions offset double-digit growth in Inclusions — the fruit and vegetable pieces used in bakery and confectionery products. Despite the sales dip, the segment’s adjusted operating profit grew 10% on a currency-adjusted basis, driven by cost-cutting and margin improvement efforts.
Health & Biosciences leads the pack
With Food Ingredients being sold, IFF’s remaining portfolio centers on three segments: Taste, Health & Biosciences, and Scent. Of the three, Health & Biosciences showed the strongest results. The unit posted a 26% adjusted profit margin — IFF’s highest — and grew operating profit by 20% in the fourth quarter. Food Biosciences and Animal Nutrition both delivered double-digit gains.
Innova Market Insights’ top food and beverage trends for 2026 identify gut health and protein as key consumer drivers, with 59% of global consumers viewing gut health as important for whole-body wellness. Innova’s research also shows a 20% increase in new product launches carrying protein claims. IFF’s cultures, enzymes, and probiotics portfolio sits at the center of that demand.
The Taste segment — IFF’s flavors business — grew 4% on a currency-adjusted basis, with broad-based gains across all regions. IFF has been investing in flavor innovation, including expanding its citrus R&D capacity amid ongoing supply chain volatility and rolling out its 2026 US flavor trend forecasts through its Tastepoint division.
Innova’s 2026 global flavor trends highlight “Sensorial Explorations” as the leading trend, with 26% of Gen Z consumers seeking visually striking and unexpected flavor combinations.
Scent grew 3% on a currency-adjusted basis, led by double-digit growth in Fine Fragrance.
Debt reduction and 2026 outlook
IFF repaid US$2.9 billion in debt during 2025, bringing its leverage ratio — a measure of debt relative to earnings — down to 2.6 times, from over four times following the DuPont merger. The company also booked a US$488 million gain from retiring debt at a discount.
For 2026, IFF expects sales of US$10.5 billion to US$10.8 billion and adjusted operating profit of US$2.05 billion to US$2.15 billion. The company projects underlying growth of 1% to 4%, with divestitures creating a roughly 5% drag on reported figures.
IFF’s second-quarter 2025 results, which first flagged the strategic review of Food Ingredients, showed mid-year sales pressure that eased in the second half.
