International Flavors & Fragrances Inc.

Strong Q2 / H1 momentum (continuing operations) with volume + productivity driving profitability - Q2 continuing-ops revenue: ~$2.0B, ~+6% YoY; broad-based growth led by Scent (8%), Taste (mid-single digits ~4%), Health & Biosciences (mid-single digits ~5%). - Q2 adjusted operating EBITDA: $408M, +6% YoY, driven by volume growth and continued productivity. - Notable transitory impacts: U.S. tariff refunds (benefit) vs higher incentive comp accruals tied to strong H1 (headwind)—so “underlying” EBITDA growth would have been stronger.

2026 guidance reset to “continuing operations” after Food Ingredients divestiture (key forecast) - Full-year 2026 continuing-ops sales forecast: $7.4B–$7.6B (+2% to +4% YoY). - Full-year 2026 continuing-ops EBITDA forecast: ~$1.53B–$1.6B (+4% to +8% YoY). - FX assumption: ~+1 ppt to sales growth and ~+2 ppt to EBITDA growth (full year). - Internal base-year reference (adjusted for portfolio changes): FY25 comparable ~ $7.2B sales and ~ $1.44B EBITDA. - Management view: sales growth moderation implied in 2H (vs Q2 strength), due to continued macro uncertainty (notably Middle East volatility).

Food Ingredients divestiture is the strategic centerpiece; affects margins via stranded costs (good + bad) - Announced milestone: divest Food Ingredients to CVC valued at ~$4.3B (~10x EV/EBITDA); “defining step” to simplify and focus on Taste, Scent, Health & Biosciences. - Transaction timing: targeting close by end of Q2 2027 (management also said “path to close” by that time). - Stranded costs: ~$100M of corporate/functional costs remain with IFF post-close, temporarily pressuring Remainco unit margins. - Plan: eliminate ~2/3 within first 12 months after close, remainder in second full year → expected to enable EBITDA margin expansion over time. - Second divestiture: agreement to sell additional nonstrategic botanical extracts/vitamins/minerals/food enhancement business (mostly Health & Biosciences + Taste) for ~$170M annual sales, mid-single-digit EBITDA margin, expected proceeds ~$75M (~10x multiple); expected close Q4 2026.