Silke Kueck

Silke Kueck asked about major product launches for 2026, specifically how the BASF collaboration will affect consumer fragrances/scent or enzymes/H&B. She also inquired if protein-enriched beverages are an opportunity for IFF, and if so, whether it's a taste or H&B opportunity. Finally, she asked if faster growth in regionals/locals implies faster private label growth and how IFF approaches private label business.

Answer

CEO Erik Fyrwald explained the BASF collaboration leverages BASF's chemistry position and IFF's enzymes, expecting enzyme growth from late 2026 into 2027, which will also improve scent relationships. He confirmed strong protein movement, especially in plant-based proteins, creating growth opportunities for IFF's protein business and broader food ingredients (mouthfeel, taste, stability), opening doors for taste capabilities. He affirmed that faster regional/local growth includes private label, and IFF is increasing emphasis on working with private label retailers and co-manufacturers.

Silke Kueck asked about major product launches for 2026, the impact of the BASF collaboration on consumer fragrances/scent versus H&B enzymes, the opportunity for IFF in protein-enriched beverages (Taste vs. H&B), and how IFF approaches the private label business given faster growth in regionals and locals.

Answer

CEO Erik Fyrwald explained that the BASF collaboration presents a strong opportunity for enzyme growth (H&B) starting late 2026 into 2027, also improving scent relationships. He noted strong growth in protein-enriched beverages, benefiting IFF's plant-based proteins (Food Ingredients) and creating opportunities for broader food ingredients and Taste capabilities to offer total solutions. He confirmed that private label is increasingly important due to the K-economy, and IFF is emphasizing work with private label retailers and co-manufacturers.

Silke Kueck, on for Jeff Zekauskas, suggested the Q2 EBIT margin outlook seemed conservative and questioned the underlying SG&A assumptions. She also asked about the annual run-rate of MAP-related charges and sought clarification on the potential accrual for the Rust-Oleum litigation.

Answer

Frank Sullivan, Chair and CEO, affirmed that the margin dynamics and SG&A discipline from Q1 would continue into Q2, and that any volume upside would lead to better-than-guided results. On the litigation, he stated the accrual range is from $0.5 million to the original $190 million verdict, but the company feels strongly about a significantly different outcome on appeal, given the case relates to a $2 million product line and is a contractual IP dispute, not a product liability issue.