IFF Achieves 9% Growth in Adjusted Operating EBITDA Despite Macro Challenges
The company reported solid results for its first quarter of 2025, with strong growth across four business segments and a significant reduction in net debt. In his opening remarks, CEO Erik Fyrwald highlighted the resilience of IFF in navigating complex macroeconomic environments.
"We've been through complex macro environments before, and what we know from history is that IFF is resilient in times like these as we focus on controlling what we can,"
Fyrwald stated. The company's strategy and commitment to operational discipline have driven solid results across its businesses, with a broad-based growth across four segments: Taste, Pharma Solutions, Scent, and Health & Biosciences.
In the first quarter, IFF delivered strong growth in Taste and Pharma Solutions, despite volume decline in Food Ingredients due to weaker performance in Protein Solutions. The company also completed its previously announced divestiture of Pharma Solutions to Roquette two months ahead of schedule, further strengthening its capital structure and achieving a net debt to credit adjusted EBITDA ratio of below 3x.
"This strategic action further strengthens our capital structure and enabled us to achieve our long-term target of net debt to credit adjusted EBITDA ratio of below 3x,"
Fyrwald noted. The company's ongoing productivity initiatives have also contributed to its success, with a 9% growth in comparable currency-neutral adjusted operating EBITDA.
As the macroeconomic environment remains challenging, Fyrwald emphasized the importance of focusing on what the company can control: delivering top-notch innovation to customers while reinvesting in long-term value creation opportunities. The company's customers and end consumers rely on its products and solutions, expertise, and trusted partnerships.
"Our customers and ultimately, end consumers rely on the quality of our products and solutions, the expertise of our talented teams, and the trusted partnership, which we are known in our industry,"
Fyrwald explained. IFF's commitment to innovation, operational discipline, and customer-centricity has enabled it to navigate complex macroeconomic environments and drive long-term profitable growth.
