International Flavors & Fragrances Inc. (IFF): A Comprehensive Corporate Profile

Quick Facts / Company Snapshot

• Full Corporate Name: International Flavors & Fragrances Inc.
• Global Headquarters: 521 West 57th Street, New York, NY 10019
• Primary Secondary Headquarters: 200 Powder Mill Road, Wilmington, DE 19803
• Fiscal Year 2024 Total Sales: $11.484 billion
• Research & Development Investment (2024): $671 million
• R&D as Percentage of Sales: 5.8%
• Total Manufacturing Facilities and Labs: Approximately 150
• Global Presence: Operations in approximately 40 different countries
• Total Workforce in R&D: Approximately 3,400 employees
• Total Number of Raw Materials Sourced: Approximately 20,000
• U.S. Patents Granted (as of Dec 31, 2024): 894
• Pending U.S. Patent Applications: 458
• Largest Business Segment by Revenue: Nourish ($5.882 billion)
• Largest Geographic Region by Sales: EAME ($3.831 billion)
• U.S. Percentage of Total Sales: 28%
• 2024 Gross Profit: $4.124 billion
• 2024 Gross Margin: 35.9%
• Dividends Paid in 2024: $514 million
• Common Stock Outstanding (Feb 24, 2025): 255,714,083 shares
• Sustainability Roadmap: The Do More Good Plan

Company Overview

International Flavors & Fragrances Inc. is a premier global creator and manufacturer of food, beverage, health & biosciences, scent, and pharma solutions. The organization operates as a critical partner to the world’s leading consumer brands, providing the essential ingredients and technologies that define the sensory experiences of everyday products. By combining science and creativity, the entity develops solutions that are used in an expansive variety of consumer applications, ranging from fine perfumes and laundry detergents to healthy snacks and life-saving pharmaceutical delivery systems.

The corporate mission is centered on a commitment to “Do More Good,” a strategy that integrates sustainability into every facet of the business. The organization holds leadership positions across multiple categories, including tastes, textures, scents, nutrition, enzymes, cultures, soy proteins, pharmaceutical excipients, and probiotics. With a focus on high-growth markets, the firm leverages a massive research and development infrastructure to stay ahead of evolving consumer preferences.

The entity operates on a global scale, serving manufacturers of dairy, meat, beverages, snacks, savory, sweet, and baked goods, as well as personal care, home care, and pharmaceutical industries.

• Total Sales reached $11.484 billion in 2024, maintaining stability compared to the prior year.
• The business is geographically diverse, with no single country other than the U.S. representing more than 10% of total sales.
• No single customer accounted for more than 10% of the total consolidated sales in 2024.

Business Segments

As of December 31, 2024, the organizational structure consisted of four primary reportable segments. These segments are organized based on the nature of the products and services provided to customers.

Nourish

2024 Revenue: $5.882 billion

Percentage of Total Revenue: 51.2%

Nourish is the largest segment, acting as a leading creator of ingredients and solutions that help customers deliver healthy and delicious foods and drinks. This segment is comprised of an innovative portfolio of natural-based ingredients designed to enhance nutritional value, texture, and functionality.

Operational Scope:

The Nourish segment operates through a global network of creative centers and application laboratories. It focuses on satisfying local customer preferences while ensuring regulatory compliance. The segment is divided into two main sub-units: Ingredients and Flavors.

• Ingredients: Includes natural and plant-based specialty food ingredients such as texturizing solutions, food protection solutions, specialty soy and pea protein, emulsifiers, and sweeteners.
• Flavors: Encompasses flavor compounds and natural taste solutions used in savory products, beverages, sweets, and dairy applications.

Strategic Changes:

Effective January 1, 2025, the Nourish segment has been separated into two newly named business units: Taste and Food Ingredients. The Flavors business has been renamed Taste, and the Ingredients business has been renamed Food Ingredients.

Scent

2024 Revenue: $2.495 billion

Percentage of Total Revenue: 21.7%

The Scent segment creates fragrance compounds and ingredients that are integral to the world’s finest perfumes and household products. It leverages consumer insights, science, and creativity to maintain a market-leading position.

Operational Scope:

Scent is comprised of Fragrance Compounds and Fragrance Ingredients.

• Fragrance Compounds: Proprietary combinations of multiple ingredients used in Fine Fragrances (perfumes and colognes) and Consumer Fragrances (fabric care, home care, and body care).
• Fragrance Ingredients: Natural and synthetic ingredients sold to third parties or used internally for compounding.

Health & Biosciences

2024 Revenue: $2.053 billion

Percentage of Total Revenue: 17.9%

This segment focuses on the development and production of an advanced biotechnology-derived portfolio. It serves both food and non-food applications through industrial fermentation and specialized science.

Operational Scope:

The segment includes Health, Cultures & Food Enzymes, Home & Personal Care, Animal Nutrition, and Grain Processing.

• Health: Provides ingredients for dietary supplements and functional food.
• Cultures & Food Enzymes: Serves demand for clean-label and fermented foods like yogurt and cheese.
• Home & Personal Care: Produces enzymes for laundry and dishwashing detergents.
• Animal Nutrition: Enhances the performance and sustainability of livestock farming.

Pharma Solutions

2024 Revenue: $1.054 billion

Percentage of Total Revenue: 9.2%

Pharma Solutions produces a vast portfolio of cellulosics and seaweed-based pharmaceutical excipients. These products are critical for improving the functionality and delivery of active pharmaceutical ingredients.

Operational Scope:

The products are used in prescription and over-the-counter pharmaceuticals, dietary supplements, and various industrial end-uses such as coatings and electronics. In 2024, the entity entered into an agreement to sell the Pharma Solutions business, with the transaction expected to close in the second quarter of 2025.

History and Evolution

The history of International Flavors & Fragrances Inc. is a narrative of strategic mergers and continuous innovation spanning over a century. The modern entity is the result of combining several pioneering firms in the flavor and fragrance industries.

Early Foundations:

The roots of the organization can be traced back to the 19th century. One of the earliest precursors, Polak & Schwarz, was founded in 1889 in the Netherlands. Another significant branch, van Ameringen-Haebler, was established in 1917 in the United States. In 1958, these two industry leaders merged to form International Flavors & Fragrances Inc. (IFF).

Strategic Expansion:

Throughout the 20th and early 21st centuries, the firm expanded its capabilities through organic growth and targeted acquisitions. Notable milestones include the acquisition of Bush Boake Allen in 2000, which significantly strengthened its global market position.

The DuPont Merger:

A transformative event in the company’s evolution occurred on February 1, 2021, when the entity completed its merger with DuPont’s Nutrition & Biosciences (“N&B”) business. This transaction was executed through a Reverse Morris Trust, effectively doubling the size of the organization and creating a global leader in high-value ingredients and solutions for the Food & Beverage, Home & Personal Care, and Health & Wellness markets.

Portfolio Optimization (2023-2024):

In recent years, the firm has focused on streamlining its portfolio to focus on core businesses.

• May 31, 2023: Completed the sale of a portion of the Savory Solutions business.
• August 1, 2023: Completed the divestiture of the Flavor Specialty Ingredients business.
• April 2, 2024: Finalized the sale of the Cosmetic Ingredients business.
• Ongoing: Entered an agreement to sell the Pharma Solutions segment to Roquette for approximately $2.85 billion in enterprise value.

Products and Services

The product portfolio is vast, encompassing thousands of tailor-made offerings designed to meet specific customer requirements across various industries.

Flavor and Taste Solutions

Revenue Contribution: Included in Nourish ($5.882 billion)

This category includes flavor compounds, natural taste solutions, and value-added spices. These products are essential for creating the flavor profiles of soups, sauces, juices, carbonated beverages, spirits, bakery products, and dairy items.

Fragrance Compounds and Ingredients

Revenue Contribution: Included in Scent ($2.495 billion)

The organization produces unique proprietary combinations of ingredients for fine fragrances and consumer goods.

• Fine Fragrances: Creating global and local namesake brands for luxury and mass markets.
• Consumer Fragrances: Solutions for laundry detergents (Fabric Care), household cleaners (Home Care), and personal wash (Body Care).

Biotechnology and Specialty Ingredients

Revenue Contribution: Included in Health & Biosciences ($2.053 billion)

This suite includes enzymes, food cultures, and probiotics produced through industrial fermentation.

• Cultures: Used in yogurt, cheese, and fermented beverages.
• Enzymes: Performance-enhancing biological catalysts for detergents and biofuel production.
• Probiotics: Strains with documented clinical health claims used in dietary supplements.

Pharmaceutical Excipients

Revenue Contribution: Included in Pharma Solutions ($1.054 billion)

Critical components used to improve the delivery of active pharmaceutical ingredients. This includes controlled or modified drug release formulations for both prescription and over-the-counter medications.

Brand Portfolio

While the entity is primarily a business-to-business (B2B) provider, it maintains several internal brands and platforms that signify quality and innovation in the industry.

LMR Naturals by IFF

LMR Naturals (Laboratoire Monique Rémy) is the premium brand for 100% pure and natural ingredients. Based in Grasse, France, it sets the industry standard for sustainable and high-quality natural extracts used in fine fragrances and flavors.

Tastepoint by IFF

Tastepoint is a specialized brand designed to serve the needs of dynamic mid-market customers. It combines the agility of a small company with the deep expertise and resources of a global leader to provide custom flavor solutions.

IFF Health

The IFF Health brand focuses on delivering evidence-based health ingredients. It encompasses a wide range of botanical extracts and probiotics aimed at the dietary supplement and functional food markets.

Geographical Presence

The organization maintains a robust global footprint, ensuring it can serve customers in every major market while managing local regulatory and consumer preferences.

Europe, Africa, and Middle East (EAME)

2024 Revenue: $3.831 billion

Percentage of Total Revenue: 33.4%

EAME is the largest regional market for the entity. It features major manufacturing and research hubs, including facilities in The Netherlands, Spain, Germany, and Denmark. The region is a center for innovation in fine fragrances and biotechnology.

North America

2024 Revenue: $3.371 billion

Percentage of Total Revenue: 29.4%

Operations in North America are anchored by the United States, which alone accounts for 28% of total global sales. Key research facilities are located in New Jersey, Delaware, and California.

Rest of Asia

2024 Revenue: $1.559 billion

Percentage of Total Revenue: 13.6%

This region includes major operations in India, Indonesia, and Singapore. It is a critical growth area, particularly for the Nourish and Scent segments.

Latin America

2024 Revenue: $1.550 billion

Percentage of Total Revenue: 13.5%

The entity has a significant presence in Brazil and Mexico, focusing on catering to the vibrant consumer goods markets in these countries.

Greater China

2024 Revenue: $1.173 billion

Percentage of Total Revenue: 10.2%

Operations in China include both manufacturing and creative centers, supporting the rapid development of the local food and personal care industries.

Financial Performance Analysis

The financial results for 2024 reflect a period of stability and strategic execution during a complex macroeconomic environment. Total sales for the year were $11.484 billion, essentially flat compared to $11.479 billion in 2023. However, on a currency-neutral basis, sales actually grew by 3%.

Profit and Loss Analysis

The organization saw a significant improvement in gross profit during 2024. Gross profit rose to $4.124 billion, a 12% increase from the previous year. This improvement was driven by favorable price-to-cost dynamics and productivity gains.

P&L Item (In Millions)	2024	2023	2022
Net Sales	$11,484	$11,479	$12,440
Cost of Sales	$7,360	$7,798	$8,289
Gross Profit	$4,124	$3,681	$4,151
R&D Expenses	$671	$636	$603
Selling & Admin Expenses	$1,995	$1,787	$1,768
Operating Profit (Loss)	$766	($2,110)	($1,326)
Net Income (Loss)	$643	($2,559)	($1,852)

Key Financial Ratios:

• Gross Margin: 35.9% (Up from 32.1% in 2023)
• R&D Intensity: 5.8% of Net Sales
• Operating Margin: 6.7%

Balance Sheet Analysis

The balance sheet reflects the ongoing efforts to optimize the capital structure and reduce indebtedness. As of December 31, 2024, the entity held $469 million in cash and cash equivalents.

Balance Sheet Item (In Millions)	2024	2023
Total Assets	$29,915	$32,187
Cash & Cash Equivalents	$469	$703
Goodwill	$15,316	$16,076
Total Debt	$8,599	$10,366
Total Equity	$15,648	$15,861

Liquidity Position:

The entity maintains access to a $2.0 billion revolving credit facility. Total debt was significantly reduced from $10.366 billion in 2023 to $8.599 billion in 2024, primarily through the application of divestiture proceeds.

Cash Flow Analysis

Cash flow from operations saw a robust increase in 2024, reaching $1.332 billion, compared to $1.130 billion in 2023.

Cash Flow Item (In Millions)	2024	2023
Net Cash from Operating Activities	$1,332	$1,130
Capital Expenditures	($526)	($518)
Cash from Investing (Disposals)	$612	$1,478
Cash used in Financing	($1,606)	($1,851)

• Free Cash Flow: Calculated as Net Cash from Operations minus Capital Expenditures, Free Cash Flow for 2024 was $806 million.
• Dividends: The entity paid $514 million in dividends to shareholders during 2024.

Board of Directors and Leadership Team

The governance of the organization is overseen by a Board of Directors with diverse expertise in global business, finance, and science.

Board of Directors (As of Early 2025)

• Roger W. Ferguson, Jr.: Chairman of the Board.
• Erik Fyrwald: Chief Executive Officer and Director.
• Kevin O’Byrne: Director (Audit Committee Chair).
• Margarita Paláu-Hernández: Director.
• Dawn C. Willoughby: Director.
• Mehmood Khan: Director.
• Mark J. Costa: Director.
• Gary Hu: Director.

Executive Leadership Team

• Erik Fyrwald: Chief Executive Officer.
• Glenn Richter: Executive Vice President and Chief Financial Officer.
• Vic Verma: Executive Vice President and Chief Information Officer.
• Angela Strzelecki: President, Pharma Solutions (until divested).
• Ana Paula Mendonça: President, Scent.
• Simon Herriott: President, Health & Biosciences.

Physical Properties

The organization operates an extensive network of physical assets designed to support its manufacturing and research requirements.

• Total Facilities: Approximately 150 manufacturing facilities, creative centers, and application laboratories.
• Manufacturing Footprint: Major plants are located in the United States, The Netherlands, Spain, Germany, Indonesia, China, Brazil, Mexico, and India.
• Corporate Offices: The principal executive offices are located in New York, NY, with significant administrative and R&D centers in Wilmington, DE, and Brabrand, Denmark.

Strategic Property Management:

The firm continuously evaluates its manufacturing footprint for cost optimization and technological implementation. In mature markets, focus is on consolidation, while in growth markets, investments are made to increase capacity.

Investments and Capital Expenditure Plans

Investment in innovation and infrastructure is a core priority for maintaining competitive advantage.

• R&D Spending: The firm invested $671 million in research and development in 2024 to support new molecule discovery and delivery system technologies.
• Capital Expenditures (Capex): In 2024, Capex was $526 million, representing approximately 4.6% of sales.
• 2025 Outlook: The management expects capital spending in 2025 to increase to approximately 6% of sales, focusing on high-return capacity expansions and digital transformation.

Future Strategy

The organization is currently executing a strategic transformation aimed at driving profitable growth and enhancing shareholder value.

1. Portfolio Optimization: Divesting non-core or lower-growth businesses (like Pharma Solutions) to focus on higher-margin areas like Scent and Taste.
2. Financial Deleveraging: Using proceeds from business sales to reduce total debt and improve the credit profile.
3. Operational Excellence: Implementing productivity programs to offset inflationary pressures and improve operating margins.
4. Growth in Bioscience: Leveraging the Health & Biosciences segment to pioneer sustainable, bio-based alternatives for the home and personal care markets.
5. Customer Centricity: Being a “partner of choice” for strategic global customers, ensuring inclusion on core supplier lists.

Key Strengths

• Global Leadership: Top-tier market positions in Food & Beverage, Home & Personal Care, and Health & Wellness.
• Proprietary Innovation: A vast library of trade secrets and 894 granted U.S. patents providing a competitive moat.
• Supply Chain Resilience: Access to 20,000 raw materials and a network of 150 facilities worldwide.
• Customer Intimacy: Deep integration with global consumer goods manufacturers, with no customer exceeding 10% of sales.
• Sustainable Solutions: A leading position in providing natural and clean-label ingredients to meet consumer demand.

Key Challenges and Risks

• Indebtedness: While reducing, the substantial amount of debt could impact the ability to return capital or fund new investments.
• Raw Material Volatility: Dependence on approximately 20,000 materials makes the firm susceptible to price spikes and supply chain disruptions.
• Competitive Pressures: Facing intense competition from both large global players and smaller, agile regional competitors.
• Regulatory Changes: Constant shifts in food safety, environmental, and chemical regulations across 40+ countries.
• Currency Fluctuations: With operations worldwide, changes in exchange rates (particularly the Euro, Real, and Yuan) significantly impact reported results.

Conclusion and Strategic Outlook

International Flavors & Fragrances Inc. stands as a cornerstone of the global consumer goods supply chain. Through 2024, the entity proved its resilience by maintaining stable sales and significantly expanding its gross margins in a challenging environment. The strategic decision to reorganize the Nourish segment into Taste and Food Ingredients, combined with the planned divestiture of Pharma Solutions, signals a clear focus on high-value core competencies. With a robust R&D pipeline and a commitment to the “Do More Good” sustainability plan, the organization is well-positioned to capitalize on the increasing consumer demand for natural, healthy, and sustainable products.

Official Site: https://www.iff.com/

FAQ Section

What was IFF’s total revenue in 2024?

IFF reported total sales of $11.484 billion for the fiscal year ended December 31, 2024.

Which is the largest business segment of IFF?

The Nourish segment is the largest, contributing $5.882 billion, which is approximately 51.2% of the total revenue in 2024.

How much does IFF invest in Research and Development?

In 2024, IFF invested $671 million in R&D, which represents approximately 5.8% of its total sales.

What is the “Do More Good” plan?

The Do More Good Plan is IFF’s sustainability roadmap consisting of four pillars: Sustainable Solutions, Climate & Planetary Health, Equity & Wellbeing, and Transparency & Accountability.

Is IFF selling its Pharma Solutions business?

Yes, IFF entered into an agreement to sell its Pharma Solutions business to Roquette for an enterprise value of approximately $2.85 billion, with the deal expected to close in Q2 2025.

Where is IFF headquartered?

The corporate headquarters are located at 521 West 57th Street, New York, NY.

Source: Content on FirmsWorld.com is based on publicly available corporate filings, regulatory disclosures, annual reports, SEC 10-K filings, investor relations materials, and, where applicable, direct communications with the company.