IFF delivered a stronger second quarter across its three continuing businesses, with currency-neutral sales up 6% and adjusted operating EBITDA also up 6%, driven primarily by volume growth and productivity gains. Reported sales rose 2% to $1.95 billion, while adjusted operating EBITDA reached $408 million, or a 20.9% margin, up from 19.7% when discontinued operations were included.
Scent remained the standout growth engine, with reported sales of $665 million, up 10%, and currency-neutral sales up 8%. Growth was led by double-digit gains in Fragrance Ingredients and high-single-digit growth in Consumer Fragrance. Fine Fragrance was more subdued, increasing low-single digits, with IFF citing the impact of the Middle East conflict. Scent adjusted EBITDA rose 5% on a currency-neutral basis to $134 million, with a 20.2% margin, supported by volume growth and productivity.
Taste also showed broad-based momentum, generating $688 million in reported sales, up 5%, with currency-neutral growth of 4% across all regions. Adjusted EBITDA climbed 6% to $124 million, helped by both volume growth and favorable net pricing. The performance suggests that volume, rather than pricing alone, is now providing a meaningful lift for IFF’s flavor business.
Health & Biosciences delivered the fastest reported sales growth, up 8% to $601 million, or 5% currency-neutral, with every business contributing. Grain Processing, Food Biosciences and Animal Nutrition were the primary growth drivers. Adjusted EBITDA rose 6% currency-neutral to $150 million, primarily on volume growth, while the segment maintained the strongest margin of the three at 25.0%.
The results come as IFF reshapes its portfolio around Taste, Scent and Health & Biosciences. The company is selling its Food Ingredients business to CVC for approximately $3.8 billion in net cash proceeds, with the transaction expected to close by the end of Q2 2027. IFF plans to use more than $1 billion to reduce debt and has authorized a $2.5 billion share repurchase program, including a $500 million accelerated repurchase in the second half of 2026.
For 2026, IFF expects continuing-operations sales of $7.4 billion-$7.6 billion, representing 2%-4% currency-neutral growth, with adjusted EBITDA of $1.53 billion-$1.60 billion, up 4%-8% on a currency-neutral basis. The quarter therefore points to a business increasingly centered on volume-led growth, with Scent providing the strongest top-line momentum and Taste showing broad-based recovery, while portfolio simplification is designed to improve the company's growth and margin profile over the longer term.
