International Flavors & Fragrances trims annual outlook on weak demand
IFF•Key details from the update
- In May, the company sold its food ingredients business to CVC Capital Partners in a deal that values the unit at about $4.3 billion, as the flavor maker trims its portfolio to boost profitability.
- It expects full-year 2026 sales in the range of $7.4 billion to $7.6 billion, below its prior forecast of $10.5 billion to $10.8 billion.
- It forecast annual adjusted operating core profit of $1.53 billion to $1.60 billion, down from its earlier projection of $2.05 billion to $2.15 billion.
- The company reported second-quarter sales of $1.95 billion, missing analysts' average estimate of $2.69 billion, according to data compiled by LSEG.
- Adjusted earnings per share came in at 82 cents for the three months ended June 30, missing expectations of $1.12 per share.
- Sales in its health and biosciences business came in at $601 million, below expectations of $604.8 million.
Outlook cut on weak demand and macro pressure
Aug 4 (Reuters) - International Flavors & Fragrances IFF.N cut its annual revenue and profit forecast on Tuesday, as macroeconomic uncertainty and inflationary pressures weigh on retail demand.
Higher living costs have strained household budgets, while the broader shift toward healthier eating and the rapid adoption of GLP-1 weight-loss drugs have driven demand for smaller, nutrient-dense food options and product reformulations, creating a challenging demand environment for companies such as International Flavors & Fragrances.
