28a46fb1ef4e5a70be22900be69327e718a9ccb883af6b59c2737f68403c8799

In Q3 2024, **cash fell to 567 million USD** due to a mix of factors. While **operating activities** generated **702 million USD** and **investing activities** provided **586 million USD** in cash inflows, these were more than offset by **financing activities** that used **1,444 million USD**—primarily driven by **974 million USD** in principal debt repayments and **411 million USD** in dividend payments. Additionally, there was a **10 million USD** negative impact from exchange rate changes, all contributing to a net decrease of **166 million USD** in cash during the period.  **[0000051253-24-000042_iff-20240930.htm:3]** **[0000051253-24-000039_q32024991pressreleaseofiff.htm:8]** 

What factors contributed to cash falling to 567 in Q3 2024?

The surge in **assets held for sale** to **$2,815 million in Q2 2024** was primarily driven by the classification of the **Pharma Solutions business** as held for sale. This reclassification included the transfer of **$1,227 million** in **goodwill** related to the Pharma Solutions segment, in addition to other associated assets.  **[0000051253-24-000032_iff-20240630.htm:2]** **[0000051253-24-000032_iff-20240630.htm:17]** 

What drove the surge in assets held for sale to 2,815 in Q2 2024?

The drop in **short-term debt** to **468 (USD, millions)** in Q3 2024 was primarily driven by significant **debt repayments** and a **reclassification of debt**. Specifically, IFF made a **$270 million repayment** of its 2024 Term Loan Facility and an approximate **$547 million repayment** for the 2024 Euro Notes, primarily using funds from commercial paper issuances and proceeds from divesting its Cosmetic Ingredients business. Additionally, a portion of the **2026 Term Loan Facility** was reclassified from long-term debt to short-term debt due to the planned divestiture of its Pharma Solutions business.  **[0000051253-24-000042_iff-20240930.htm:3]** **[0000051253-24-000042_iff-20240930.htm:23]** 

Why did short-term debt drop to 468 in Q3 2024?

The decline in **Goodwill** to **9,282 million** in Q2 2024 was primarily driven by several factors. First, **$1,227 million** of goodwill was transferred to assets held for sale, including **$1,172 million** related to the Pharma Solutions disposal group. Second, an impairment charge of **$64 million** was recognized for the Pharma Solutions disposal group. Finally, a negative foreign exchange adjustment reduced goodwill by **$126 million**. These factors combined led to the observed reduction in goodwill.  **[0000051253-24-000032_iff-20240630.htm:17]** 

What led to the decline in Goodwill to 9,282 in Q2 2024?

**Total Assets dropped to $29,543 million in Q2 2024 because of several factors. The decline was driven primarily by a reduction in goodwill and other intangible assets—with goodwill falling from **$10,635 million** to **$9,282 million** and other intangible assets from **$8,357 million** to **$6,881 million**, resulting in a combined decline of **$2,829 million**. This was compounded by a significant increase in assets held for sale (from **$506 million** to **$2,815 million**), a reduction in inventories by **$317 million**, and a decrease in net Property, Plant, and Equipment by **$477 million**. These factors collectively led to the overall drop in Total Assets by **$1,435 million**.  **[0000051253-24-000032_iff-20240630.htm:2]** **[0000051253-24-000029_q22024991pressreleaseofiff.htm:8]** **

Why did Total Assets drop to 29,543 in Q2 2024?

36933d54bb02e837694163de657342c6ae275bf5cbd5c9faa4a8f02cefbb64b0

Operating profit was extremely low in **Q4 2023** primarily due to a **non-cash goodwill impairment charge of $2.6 billion** related to its Nourish business, along with a **decline in net sales by 5% to $2.7 billion** driven by volume pressures and cost inflation. Additionally, **continued cost pressures** across several segments and **restructuring and other charges** further contributed to turning operating profit into a loss of **$2.536 billion** in Q4 2023.  **[0000051253-24-000003_q42023991pressreleaseofiff.htm:0]** **[IFF_3374366_4]** **[IFF_3374366_5]** **[0000051253-24-000003_q42023991pressreleaseofiff.htm:9]** 

Why was Operating profit so low in Q4 2023?

The dramatic drop in Net income in Q4 2023 was primarily driven by a **non-cash goodwill impairment charge** of **$2.6 billion** related to the Nourish business. This significant impairment was due to **lower business projections**, particularly from **volume declines** in functional ingredients, combined with **continued cost inflation** and **unfavorable foreign exchange rate fluctuations**.  **[0000051253-24-000003_q42023991pressreleaseofiff.htm:0]** **[IFF_3374366_4]** 

What drove the dramatic drop in Net income in Q4 2023?

EPS fell so steeply in Q4 2023 because of a combination of factors. The company recorded a **non-cash goodwill impairment charge of $2.6 billion** related to its Nourish business, which was driven by lower business projections, volume declines, cost inflation, and unfavorable foreign exchange fluctuations.  **[IFF_3374366_4]** **[0000051253-24-000003_q42023991pressreleaseofiff.htm:0]**  Additionally, **restructuring costs**, along with **acquisition, divestiture, and integration costs of $56 million**, and **regulatory costs of $18 million** further contributed to the decline.  **[0000051253-24-000003_q42023991pressreleaseofiff.htm:13]**  Moreover, a **5% drop in reported net sales** to **$2.7 billion** and an **operating loss of $2.54 billion** (compared to a prior period operating profit) compounded the effect, leading to a dramatic drop in earnings per share.  **[0000051253-24-000003_q42023991pressreleaseofiff.htm:0]** **[0000051253-24-000003_q42023991pressreleaseofiff.htm:9]** **[0000051253-24-000003_q42023991pressreleaseofiff.htm:13]** 

Why did EPS fall so steeply in Q4 2023?

93342d175f1c96e5d94fecbb88411830c1489783306a9b729aaf84f1791f74b3

8d9d5f10ff26b4c4c8e17dcbf7777cda380246eb44c9710bde5137e1055002e0

Net sales (USD, millions)

Cost of Sales (USD, millions)

Gross profit (USD, millions)

Research and development expenses (USD, millions)

Selling and administrative expenses (USD, millions)

Amortization of acquisition-related intangibles (USD, millions)

Impairment of goodwill (USD, millions)

Restructuring and other charges (USD, millions)

(Gains) losses on sale of assets (USD, millions)

Operating profit (USD, millions)

Interest expense (USD, millions)

(Gains) losses on business disposals (USD, millions)

Loss on assets classified as held for sale (USD, millions)

Other expense (income), net (USD, millions)

Income before income taxes (USD, millions)

Provision for income taxes (USD, millions)

Net income (USD, millions)

Net income attributable to non-controlling interests (USD, millions)

Net income attributable to IFF shareholders (USD, millions)

Net income per share - basic and diluted (USD)

Impairment of long-lived assets (USD, millions)

2ef34df1422e9ffd021488961bafd72e231ebfd04645606783ed1886c3c8c79d

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

Selling, General, and Administrative Expenses (SG&A) [USD, Millions]

Research and Development (R&D) [USD, Millions]

Depreciation and Amortization (D&A) [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

Earnings Per Share (EPS) - Basic [USD, Units]

Earnings Per Share (EPS) - Diluted [USD, Units]

6811df21627cd5db25b5576e078e405821cedb52513ce17b24b07cf2f122e97d

6fafd04020813dec1a6684c56ae5899a8ea48d2b35ae09427f15d37649634d28

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

39d019f69c78ae71968fc1f4b601ea58969ef9692f0cc33bed93267f30f36bf3

62d0ff472e1b5e4b9d6c16c8373f50151fbd8e0c588c63b40f0f1dc09b281d15

Nourish

Health & Biosciences

Scent

Pharma Solutions

Taste Segment

- Flavor Compounds

- Flavor Ingredients

- Fragrance Compounds

- Fragrance Ingredients

Frutarom

Flavors Segment

Fragrances Segment

Total Revenue

e71207e1d8da91ebd285350f79024c11c856160b940682c3415eaa8acc92fb53

Europe, Africa, and Middle East

Greater Asia

North America

Latin America

United States

All Foreign Countries

f369b6fce095e957841913dc74a557257c6b9fa4e9d0e073c0eb2b5725d21682

INTERNATIONAL FLAVORS & FRAGRANCES (IFF)

Financials