IFF faces significant risks from substantial debt, potential legal claims (including securities class actions and antitrust investigations), regulatory actions, and unfavorable resolutions of litigation. High input costs (raw materials, transportation, energy), supply chain disruptions, and geopolitical events (Russia-Ukraine war, Israel-Hamas war) pose further risks. Currency fluctuations and economic uncertainty also threaten profitability and liquidity. The company's ability to successfully execute its strategic transformation and divestments is also a risk.
Financial Upside
IFF experienced sales growth in Q3 2024, both reported and currency-neutral. Gross profit increased significantly, driven by volume and pricing. Segment Adjusted Operating EBITDA increased across multiple segments, indicating strong underlying operating performance. The company's divestitures, while creating losses in some periods, also generated substantial cash proceeds. Positive pricing and productivity gains are also noted.
