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International Flavors to Report Q2 Earnings: Here's What to Expect

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Key Takeaways

  • IFF is set to report Q2 results on Aug. 5, with sales expected to dip 5.4% to $2.73 billion.
  • Volume gains and cost-cutting are likely to have aided margins despite high raw material cost headwinds.
  • The Taste and Health & Biosciences segments are projected to post strong y/y sales growth.

International Flavors & Fragrances Inc. (IFF - Free Report) is scheduled to report second-quarter 2025 results on Aug. 5, after the closing bell.

The Zacks Consensus Estimate for IFF’s sales is pegged at $2.73 billion, indicating a 5.4% dip from the year-ago reported figure.

The consensus estimate for earnings is pegged at $1.11 per share. The consensus estimate for IFF’s earnings has moved up 0.9% in the past 60 days. The estimate indicates a year-over-year dip of 4.3%.

 

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IFF’s Earnings Surprise History

International Flavors’ earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and missed in one, the average beat being 11.1%.

 

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What the Zacks Model Unveils for International Flavors

Our model does not predict an earnings beat for International Flavors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.

Earnings ESP: IFF has an Earnings ESP of -0.31%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank of 3.

Factors Likely to Have Shaped IFF’s Q2 Performance

The company has been witnessing volume growth, with broad-based contributions across each of its businesses. International Flavors’ results are likely to reflect the impacts of the overall improvement in its sales performance. IFF’s ongoing efforts to improve productivity and reduce costs are likely to have benefited its margins.

However, International Flavors has been incurring high raw material costs and additional costs related to labor, shipping and cleaning. Despite its pricing actions and focused cost reduction efforts, these factors are likely to have dented margins in the to-be-reported quarter. International Flavors’ manufacturing costs are expected to have increased to support higher demand.

Projections for International Flavors’ Segments in Q2

In May 2025, the company divested its Pharma Solutions segment. At the beginning of the first quarter of 2025, the company separated its Nourish segment into Taste and Food Ingredients segments. Post these adjustments, the company currently has four business divisions — Taste, Food Ingredients, Health & Bioscience, and Scent. 

Our model estimates the Taste segment’s second-quarter sales to rise 8.8% year over year to $663 million. The segment’s adjusted operating EBITDA is projected at $129 million, indicating a rise of 1.5% from the year-ago quarter’s actual.

Our model estimates the Food Ingredient’s second-quarter sales to fall 2.3% year over year to $827 million. The segment’s adjusted operating EBITDA is projected at $110 million, indicating a rise of 0.9% from the year-ago quarter’s actual.

We expect the Scent segment’s sales to increase 7.6% year over year to $649 million. The ongoing momentum in Consumer Fragrance, as well as improvement in Fragrance Ingredients and Fine Fragrance, is likely to have aided its performance. However, the gains will be partially negated by higher costs. Our estimate for the segment’s quarterly operating EBITDA is $135 million, indicating a year-over-year decrease of 5.9%.

The projection for the Health & Biosciences segment’s sales is $581 million, indicating a 21.3% increase from the year-ago quarter’s reported figure, reflecting the ongoing momentum in its businesses. We expect operating EBITDA to increase 1% to $152.5 million.

IFF Stock’s Price Performance

In the past year, IFF shares have lost 26.7% compared with the industry’s 3.3% decline.

 

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Stocks to Consider

Here are some other companies in the basic materials space, which, according to our model, also have the right combination of elements to post an earnings beat this quarter.

Hudbay Minerals Inc. (HBM - Free Report) , slated to release second-quarter 2025 earnings on Aug. 13, currently has an Earnings ESP of +1.12% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hudbay Minerals’ earnings for the second quarter is pegged at 11 cents per share. The estimate indicates a significant climb from the break-even earnings in the year-ago quarter. Hudbay Minerals has a trailing four-quarter average earnings surprise of 50%.

Triple Flag Precious Metals Corp. (TFPM - Free Report) , scheduled to release second-quarter 2025 earnings on Aug. 6, presently has an Earnings ESP of +2.80% and a Zacks Rank of 3.

Triple Flag Precious’ earnings for the second quarter are pegged at 21 cents per share, indicating year-over-year growth of 61.5%. Triple Flag Precious has a trailing four-quarter average earnings surprise of 6.7%.

The Mosaic Company (MOS - Free Report) , scheduled to release second-quarter 2025 earnings on Aug. 5, has an Earnings ESP of +10.45% and a Zacks Rank #3.

The Zacks Consensus Estimate for MOS's earnings for the second quarter of 2025 is pegged at 67 cents, indicating an increase of 21.5% from the year-ago quarter’s reported figure.

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