IFFHIGH SIGNALOPERATIONAL10-K

IFF completed a major business restructuring, divesting Pharma Solutions operations in May 2025 while reorganizing its core business from four segments into five, including splitting the former Nourish segment into separate Taste and Food Ingredients divisions.

This represents a strategic pivot away from pharmaceutical solutions to focus on IFF's core food, beverage, and scent markets. The divestiture and restructuring suggest management is streamlining operations to concentrate on higher-growth consumer-facing categories where IFF holds stronger competitive positions.

Comparing 2026-02-27 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

The financial results reflect the major operational changes, with total debt declining significantly from $8.9B to $5.6B and total assets falling from $28.7B to $25.5B, likely driven by the Pharma Solutions divestiture. Operating cash flow decreased to $850M from $1.1B while net income grew modestly to $340M, and capital expenditures increased to $594M, suggesting reinvestment in the remaining core businesses. The overall picture shows a smaller but potentially more focused company following the strategic restructuring.

FINANCIAL STATEMENT CHANGES
Total Debt
Balance Sheet
-36.6%
$8.9B$5.6B

Debt reduced 36.6% — deleveraging strengthens balance sheet and reduces financial risk.

Current Assets
Balance Sheet
-30%
$8.0B$5.6B

Current assets declined 30% — monitor working capital adequacy and short-term liquidity.

Capital Expenditure
Cash Flow
+28.3%
$463.0M$594.0M

Capex increased 28.3% — ongoing investment in capacity or infrastructure for future growth.

Cash & Equivalents
Balance Sheet
+25.8%
$469.0M$590.0M

Cash grew 25.8% — improving liquidity position supports investment and shareholder returns.

Operating Cash Flow
Cash Flow
-20.6%
$1.1B$850.0M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Net Income
P&L
+14.9%
$295.7M$339.8M

Net income grew 14.9% — bottom-line growth signals improving overall business health.

Total Assets
Balance Sheet
-10.9%
$28.7B$25.5B

Total assets contracted 10.9% — asset sales, write-downs, or balance sheet optimization underway.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-28
ADDED
As of February 20, 2026, there were 255,477,487 shares of the registrant s common stock, par value 12 1 / 2 per share, outstanding.
We are a leading creator and manufacturer of products for application in food, beverage, health biosciences, and scent, as well as complementary adjacent products, including natural health ingredients, all of which are used in a wide variety of consumer and end-use products.
As a result, we hold global leadership positions in the Food Beverage, Home Personal Care and Health Wellness markets, and across key Tastes, Textures, Scents, Nutrition, Enzymes, Cultures, Soy Proteins and Probiotics categories, among others.
Our Product Offerings During the year ended December 31, 2025, our business consisted of five segments: Taste, Food Ingredients, Health Biosciences, Scent and, until the completion of the divestitures of both the Pharma Solutions and Nitrocellulose disposal groups in May 2025, Pharma Solutions.
Effective January 1, 2025, our former Nourish segment was restructured into two newly designated operating segments: Taste and Food Ingredients.
Taste Our Taste segment consists of the development and production of a range of flavor compounds and natural taste solutions that are ultimately used by our 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 includes value-added spices and seasoning ingredients for meat, food service, convenience, alternative protein and culinary products.
Food Ingredients Our Food Ingredients segment consists 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.
Food Ingredients also includes savory solutions (such as spices, marinades, and mixtures) and inclusion products (such as products combining flavorings with fruit, vegetables and other natural ingredients).
Among many other applications, our portfolio includes cultures for use in fermented foods such as yogurt, cheese and fermented beverages, probiotic strains, household detergents, animal feed, ethanol production and brewing.
REMOVED
As of February 24, 2025, there were 255,714,083 shares of the registrant s common stock, par value 12 1 / 2 per share, outstanding.
We are a leading creator and manufacturer of food, beverage, health biosciences, scent and pharma solutions and complementary adjacent products, including natural health ingredients, which are used in a wide variety of consumer products.
As a result, we hold global leadership positions in the Food Beverage, Home Personal Care and Health Wellness markets, and across key Tastes, Textures, Scents, Nutrition, Enzymes, Cultures, Soy Proteins, Pharmaceutical Excipients and Probiotics categories.
Our Product Offerings As of December 31, 2024, our business consisted of four segments: Nourish, Health Biosciences, Scent and Pharma Solutions.
We create products in our regional creative centers which allows us to satisfy local customer preferences, while also helping to ensure regulatory compliance and production standards.
We develop thousands of different Nourish offerings, most of which are tailor-made, and we continually develop new ingredients and solutions to meet changing consumer preferences and customer needs.
Our Nourish segment consists of an innovative and broad portfolio of natural-based ingredients to enhance nutritional value, texture and functionality in a wide range of beverage, dairy, bakery, confectionery and culinary applications and consists of Ingredients and Flavors.
Ingredients include a diversified portfolio across natural and plant-based specialty food ingredients derived from herbs and plants that provide texturizing solutions used in the food industry, food protection solutions used in food and beverage products, as well as specialty soy and pea protein with value-added formulations, emulsifiers and sweeteners.
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), formerly part of Food Designs.
During the fourth quarter of 2022, we announced our entry into an agreement to sell a portion of the Savory Solutions business and completed the divestiture on May 31, 2023.
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