International Flavors & Fragrances (IFF) Consumer Analyst Group of New York Conference (CAGNY) 2026 summary

Strategic transformation, financial discipline, and business model

• Executed portfolio optimization with 11 divestitures, generating over $6B in gross proceeds and improving capital structure, reducing leverage from 4.5x to 2.6x net debt/EBITDA by 2025.

• Adopted a business unit-led operating model, enhanced leadership and employee engagement, and evolved the Board of Directors.

• Reinvested $150 million in OpEx from 2024–2026 and increased CapEx to support innovation, R&D, commercial capabilities, capacity expansion, and digital transformation, targeting 4–6% of sales through 2026.

• Launched a $500 million share buyback program, the first in six years, to offset dilution and capture intrinsic value.

• Focused on high-return investments, productivity, and capital allocation to higher-margin categories, driving disciplined execution and cash conversion.

Financial performance and guidance

• Projected average comparable currency neutral sales growth of 4% and adjusted EBITDA growth of 10% between 2024 and 2026, driven by core divisions.

• Food Ingredients expected to deliver 500 bps of EBITDA margin expansion over three years.

• Core businesses targeting mid-single-digit sales and high-single-digit EBITDA growth CAGRs over time.

Portfolio and market positioning

• Shifted toward higher-value, higher-growth, and higher-margin businesses, increasing average gross profit margin from 29% (divested) to 36%.

• Maintains a diversified portfolio across Taste, Scent, Health & Biosciences, and Food Ingredients, serving approximately 20,000 customers globally.

• Strong presence in both developed (54%) and emerging (47%) markets.