International Flavors & Fragrances Inc (IFF) 2025 Q2 法說會逐字稿

At this time, I would like to welcome everyone to the IFF second quarter 2025 Earnings Conference Call. (Operator Instructions).

現在，我歡迎大家參加 IFF 2025 年第二季財報電話會議。（操作員指令）。

I would now like to introduce Michael Bender, Head of Investor Relations. Michael, you may begin.

現在我想介紹投資人關係主管 Michael Bender。邁克爾，你可以開始了。

Thank you. Good morning, good afternoon and good evening, everyone. Welcome to IFF's Second Quarter 2025 Conference Call. Yesterday afternoon, we issued our press release announcing our financial results. A copy of the release can be found on our IR website at ir.iff.com. Please note that this call is being recorded live and will be available for replay. During the call, we'll be making forward-looking statements about the company's performance and business outlook. These statements are based on how we see things today and contain elements of uncertainty.

謝謝。大家早安、下午好、晚上好。歡迎參加 IFF 2025 年第二季電話會議。昨天下午，我們發布了新聞稿，公佈了我們的財務表現。您可以在我們投資者關係網站 ir.iff.com 上找到該新聞稿的副本。請注意，本次電話會議正在進行現場錄音，可供重播。在電話會議中，我們將對公司的業績和業務前景做出前瞻性陳述。這些表述是基於我們今天對事物的看法，包含不確定因素。

For additional information concerning the factors that can cause actual results to differ materially, please refer to our cautionary statement and risk factors contained in our 10-K and press release, both of which can be found on our website. Today's presentation will include non-GAAP financial measures, which exclude those items that we believe affect comparability.

有關可能導致實際結果大不相同的因素的更多信息，請參閱我們的 10-K 和新聞稿中包含的警告聲明和風險因素，這兩者都可以在我們的網站上找到。今天的演示將包括非公認會計準則財務指標，其中不包括我們認為影響可比性的項目。

A reconciliation of these non-GAAP financial measures to their respective GAAP measures is set forth in the press release. Also, please note that all the sales and adjusted operating EBITDA growth numbers that we will be speaking to on the call are all on a comparable currency-neutral basis unless otherwise noted.

新聞稿中列出了這些非 GAAP 財務指標與各自 GAAP 指標的對帳情況。另外，請注意，除非另有說明，我們在電話會議上討論的所有銷售額和調整後的營業 EBITDA 成長數字都是基於可比較的貨幣中性基礎。

With me on the call today is our CEO, Erik Fyrwald; and our CFO, Michael DeVeau. We will begin with prepared remarks and then take questions at the end. With that, I would now like to turn the call over to Erik.

今天與我一起參加電話會議的還有我們的執行長 Erik Fyrwald 和我們的財務長 Michael DeVeau。我們將從準備好的發言開始，然後在最後回答問題。說完這些，我現在想把電話轉給艾瑞克。

Thanks, Mike, and good morning, everyone. Thanks for joining us today. Our second quarter results reflect continued progress with growth improved profitability and divestitures that have strengthened our financial position and our net debt-to-EBITDA is now down to 2.5x. This progress shows that the steps we are taking including creating and bringing leading innovation to customers and driving operational excellence is paying off.

謝謝，麥克，大家早安。感謝您今天加入我們。我們第二季的業績體現了持續的進步，成長、獲利能力的提升以及資產剝離增強了我們的財務狀況，我們的淨債務與EBITDA之比現已降至2.5倍。這項進展表明，我們正在採取的措施，包括為客戶創造和提供領先的創新以及推動卓越運營，正在取得成效。

I will start with an executive summary of some accomplishments so far this year and then I'll turn the call over to Mike DeVeau, who will provide a more detailed look at our financial results for the second quarter and our current outlook for the rest of 2025. Then we'll open it up for your questions. On this next slide, I'd like to summarize our recent results and the progress we are making towards building a more competitive growth-oriented IFF. We achieved solid growth in profitability in the first half of 2025 and with 3% sales growth and 7% adjusted operating EBITDA growth.

我將首先對今年迄今為止的一些成就進行執行總結，然後將電話交給 Mike DeVeau，他將更詳細地介紹我們第二季度的財務業績以及我們對 2025 年剩餘時間的當前展望。然後我們將開始回答你們的問題。在下一張投影片中，我想總結我們最近的成果以及我們在建立更具競爭力、以成長為導向的 IFF 方面所取得的進展。2025 年上半年，我們的獲利能力實現了穩健成長，銷售額成長 3%，調整後營業 EBITDA 成長 7%。

I'm also very pleased that during the quarter, we completed the divestitures of our Pharma Solutions and nitrocellulose businesses and successfully completed our debt tender offering. These actions enabled us to reduce our leverage to 2.5x ahead of our target of less than 3x further solidifying our financial position. This is the first time IFF has been below 3.0x net debt to credit adjusted EBITDA since 2018.

我也很高興，在本季度，我們完成了製藥解決方案和硝化纖維素業務的剝離，並成功完成了債務要約發行。這些措施使我們能夠將槓桿率降低至 2.5 倍，超出了 3 倍以下的目標，進一步鞏固了我們的財務狀況。這是自 2018 年以來 IFF 淨債務與調整後 EBITDA 比率首次低於 3.0 倍。

And yesterday, we also announced the divestiture of our Soy Crush, Concentrates & Lecithin business to Bunge. These products better fit with Bunge and it's another step in our focus on products with differentiated innovation that enhances margins. And this will get us closer to our mid-teens EBITDA margin goal for our food ingredients business. And as we streamline our fruit ingredients portfolio, it also strengthens our ability to continue evaluating strategic alternatives for this business.

昨天，我們也宣布將大豆壓榨、濃縮和卵磷脂業務剝離給邦吉。這些產品更適合邦吉，這是我們專注於差異化創新產品以提高利潤率的又一步。這將使我們的食品配料業務更接近十五六歲的 EBITDA 利潤率目標。隨著我們精簡水果原料組合，我們也增強了繼續評估該業務策略替代方案的能力。

We also announced a new $500 million share repurchase authorization to return capital to our shareholders. This Board authorization shows the confidence we have in the future of IFF and marks an important step toward a balanced and disciplined capital allocation strategy prioritizes both business and reinvestment to drive sustained growth and return of capital to shareholders.

我們也宣布了一項新的 5 億美元股票回購授權，向股東返還資本。董事會的授權表明了我們對 IFF 未來的信心，並標誌著我們朝著平衡、嚴謹的資本配置策略邁出了重要一步，該策略優先考慮業務和再投資，以推動持續增長和向股東的資本回報。

Looking ahead, we remain on track to deliver our full year 2025 guidance that we outlined earlier this year despite an increasingly challenging operating environment, and the time it is taking for the increased investments in R&D and in Health and Biosciences capacity that we started to action through last year to show up in increased sales.

展望未來，儘管經營環境日益嚴峻，而且我們去年開始加大對研發以及健康與生物科學能力的投資，需要一段時間才能體現在銷售額的增長中，但我們仍有望實現今年早些時候制定的 2025 年全年目標。

We continue to focus on the factors within our control. And as we said on the first quarter earnings call, have prepared for a more difficult second half, particularly given the strong prior year comparison in the third of last year. And while we expect to be at the lower end of our 1% to 4% currency-neutral sales growth in 2025, we are confident in our ability to navigate evolving conditions respond swiftly to emerging challenges and opportunities and maintain disciplined execution throughout the remainder of the year. We have strengthening commercial and R&D pipelines that I am confident will begin to show more impact in 2026 and build for full benefit in 2027.

我們繼續關注我們能夠控制的因素。正如我們在第一季財報電話會議上所說的那樣，我們已經為更艱難的下半年做好了準備，特別是考慮到去年第三季的業績與去年同期相比表現強勁。儘管我們預計 2025 年的銷售額成長率將處於 1% 至 4% 的低端（不受貨幣影響），但我們有信心能夠應對不斷變化的環境，迅速應對新出現的挑戰和機遇，並在今年剩餘時間內保持嚴謹的執行力。我們正在加強商業和研發管道，我相信這些管道將在 2026 年開始發揮更大的作用，並在 2027 年實現全面效益。

Before I pass it over to Mike, I want to take a moment to thank our IFF efforts all around the world for driving our progress so far this year. They've started to build positive momentum, including developing leading innovations that will show increasing value in the coming years. And they are doing this while strengthening our productivity muscle to enable us to continue to invest in growth despite increasing market challenges. With that, I'll pass the call over to Mike to take a closer look at our consolidated results for the quarter. Mike?

在將任務交給麥克之前，我想花點時間感謝我們在世界各地的 IFF 努力，感謝它們推動了我們今年的進展。他們已經開始建立積極的勢頭，包括開發將在未來幾年顯示出越來越大價值的領先創新。他們在這樣做的同時也加強了我們的生產力，使我們能夠在市場挑戰日益增加的情況下繼續投資於成長。說完這些，我將把電話轉給麥克，讓他仔細看看我們本季的綜合業績。麥克風？

Thank you, Erik, and good morning, everyone. IFF delivered second quarter sales of just greater than $2.75 billion, a 3% increase year-over-year. We achieved sales growth across all our businesses, primarily driven by volume gains including mid-single-digit growth in taste and health and Biosciences. In the second quarter, we delivered adjusted operating EBITDA of $552 million, a solid 6% increase with our adjusted operating EBITDA margin increasing 50 basis points year-over-year.

謝謝你，艾瑞克，大家早安。IFF 第二季銷售額略高於 27.5 億美元，較去年同期成長 3%。我們所有業務的銷售額均實現了成長，主要得益於銷量的成長，包括口味與健康和生物科學領域的中等個位數成長。第二季度，我們的調整後營業 EBITDA 為 5.52 億美元，成長 6%，調整後營業 EBITDA 利潤率年增 50 個基點。

Turning now to slide 8. I will provide a closer look at our performance by segment. I'll begin with Pharma Solutions which had a strong month, delivering sales of $103 million, a 21% year-over-year increase while also recording 5% growth in profitability.

現在翻到幻燈片 8。我將更詳細地介紹我們各部門的表現。我先從 Pharma Solutions 開始，該公司本月表現強勁，銷售額達 1.03 億美元，年增 21%，同時獲利能力也成長了 5%。

As Erik mentioned, we successfully completed the divestiture of Pharma Solutions on May 1, and this will be the last time we report figures for that segment. In Taste, sales were $631 million, a 6% increase, driven by another strong quarter of commercial performance. Growth was strongest in Latin America and the Europe, Africa and Middle East region.

正如艾瑞克所提到的，我們在 5 月 1 日成功完成了 Pharma Solutions 的剝離，這將是我們最後一次報告該部門的數據。Taste 部門的銷售額為 6.31 億美元，成長 6%，這得益於另一個季度強勁的商業表現。拉丁美洲和歐洲、非洲和中東地區的成長最為強勁。

This segment also recorded another quarter of profitability growth, with adjusted operating EBITDA totaling $125 million, a 3% increase from the prior year. Profitability gains were driven primarily by volume growth and favorable net pricing.

該部門還實現了另一個季度的盈利增長，調整後的營業 EBITDA 總計 1.25 億美元，較上年增長 3%。獲利能力的成長主要得益於銷售的成長和有利的淨定價。

In the first half, taste finished with 6% sales growth and 12% adjusted operating EBITDA growth. include ingredients had sales of $850 million, a 1% increase from the prior year, driven by growth in inclusions and emulsifiers contactors. The segment also delivered an excellent quarter of profitability where adjusted operating EBITDA grew 21% with volume, favorable net pricing and productivity driving margin expansion. It is worth noting that we continue to execute our operational improvement plan to strengthen margins within our Food Ingredients business. We significantly improved profitability in the segment this quarter with a 170 basis point improvement in adjusted operating EBITDA margin finishing at 14.6%.

上半年，口味銷售額成長 6%，調整後營業 EBITDA 成長 12%。包括配料在內的銷售額為 8.5 億美元，比上年增長 1%，這得益於內含物和乳化劑接觸器的增長。該部門還實現了出色的盈利季度，其中調整後的營業 EBITDA 增長了 21%，銷售、有利的淨定價和生產力推動了利潤率的擴大。值得注意的是，我們將繼續執行營運改善計劃，以提高食品配料業務的利潤率。本季度，我們大幅提高了該部門的獲利能力，調整後營業 EBITDA 利潤率提高了 170 個基點，達到 14.6%。

We will continue to drive improvement include ingredients as we move through 2025 and into 2026. Our Health & Bioscience segment grew 4% in the quarter as broad-based growth was led by strong gains in health, food Biosciences and Animal Nutrition. We also delivered adjusted operating EBITDA of $151 million, a 3% increase as volume growth and productivity gains more than offset reinvestment.

在 2025 年和 2026 年期間，我們將繼續推動包括原料在內的改進。我們的健康與生物科學部門在本季成長了 4%，其中廣泛的成長主要由健康、食品生物科學和動物營養領域的強勁成長所帶動。我們也實現了 1.51 億美元的調整後營業 EBITDA，成長 3%，因為銷售成長和生產力提高超過了再投資。

Lastly, Sense also achieved sales growth with net sales of $603 million, up 1% year-over-year against a strong double-digit year ago comparison driven by double-digit growth in Fine Fragrance and low single-digit growth in consumer fragrances. Fragrance Ingredients was down as growth in Specialty Ingredients was more than offset by declines in commodities as a result of low-cost competition.

最後，Sense 也實現了銷售成長，淨銷售額達 6.03 億美元，年成長 1%，而去年同期則實現了強勁的兩位數成長，這得益於高級香水的兩位數成長和消費香水的低個位數成長。由於低成本競爭導致大宗商品價格下跌，特種成分的成長被其所抵消，因此香料成分的銷售額出現下降。

To counteract this and to build long-term competitive advantage, we are investing in new molecule development to overindex tort specialty ingredients. In the quarter, Sense delivered $130 million in adjusted operating EBITDA as profitability was impacted primarily by unfavorable net pricing due to a timing lag.

為了解決這個問題並建立長期競爭優勢，我們正在投資新分子開發以超越特殊成分。本季度，Sense 的調整後營業 EBITDA 為 1.3 億美元，獲利能力主要受到時間滯後導致的不利淨定價的影響。

Turning now to slide 9. Cash flow from operations totaled $368 million year-to-date, while CapEx was $274 million or roughly 5% of sales. Our free cash flow position in Q2 totaled $94 million, a sequential increase of more than $140 million from last quarter. We paid $204 million in dividends through the end of the second quarter, and our cash and cash equivalents totaled $816 million. As of June 30, our gross debt was approximately $6.2 billion, a decrease of more than $3 billion compared to the year ago period. Our trailing 12-month credit adjusted EBITDA totaled approximately $2.2 billion. I'm happy to report that we reached our net debt to credit adjusted EBITDA target in the second quarter will be finished at 2.5x.

現在翻到第 9 張投影片。今年迄今為止，經營現金流總計 3.68 億美元，而資本支出為 2.74 億美元，約佔銷售額的 5%。我們第二季的自由現金流總計 9,400 萬美元，比上一季增加 1.4 億美元以上。截至第二季末，我們支付了 2.04 億美元的股息，我們的現金和現金等價物總額為 8.16 億美元。截至 6 月 30 日，我們的總債務約為 62 億美元，與去年同期相比減少了 30 多億美元。我們過去 12 個月的信貸調整後 EBITDA 總計約 22 億美元。我很高興地報告，我們在第二季度實現了淨債務與信貸調整後的 EBITDA 目標，將達到 2.5 倍。

Now that our leverage is within our target range, I would like to take a moment to talk about our focus on free cash flow generation and walk you through our revised capital allocation strategy. At IFF, we are committed to increasing our free cash flow conversion. This business is very cash generative, and we are aware of the responsibility to invest our free cash flow carefully on our shareholders' behalf. We view every investment decision through a lens of return on invested capital. This means we are focused on prioritizing capital deployment where it can generate the highest long-term returns for our shareholders.

現在我們的槓桿率已達到目標範圍，我想花點時間談談我們對自由現金流產生的關注，並向您介紹我們修訂後的資本配置策略。在 IFF，我們致力於增加我們的自由現金流轉換。這項業務的現金創造能力非常強，我們意識到有責任代表股東謹慎投資我們的自由現金流。我們從投資資本報酬率的角度來檢視每項投資決策。這意味著我們專注於優先部署資本，以便為股東創造最高的長期回報。

First, we prioritize reinvestment in the highest return areas of our portfolio. Our CapEx is being carefully directed towards businesses and initiatives that offer strong value creation potential, particularly in innovation, capacity expansion, productivity and digitalization. Second, we have made meaningful progress in strengthening our balance sheet.

首先，我們優先對投資組合中報酬率最高的領域進行再投資。我們的資本支出正謹慎地投向具有強大價值創造潛力的業務和計劃，特別是在創新、產能擴張、生產力和數位化方面。第二，我們在加強資產負債表方面取得了有意義的進展。

Maintaining this new level of financial flexibility is a priority as it enables us to navigate through macroeconomic uncertainty while preserving the capacity to reinvest in the business and return capital to shareholders. Third, we remain committed to delivering consistent returns to shareholders. Our dividend continues to be a central component of our investment proposition. We are focused on maintaining and over time, growing our dividend as we grow earnings.

維持這一新的財務靈活性水準是當務之急，因為它使我們能夠應對宏觀經濟的不確定性，同時保留對業務進行再投資和向股東返還資本的能力。第三，我們持續致力於為股東提供持續的回報。我們的股利仍然是我們投資主張的核心組成部分。我們專注於維持股息，並隨著時間的推移，隨著收益的增長而增加股息。

Fourth, today, we've launched our dilution plus share repurchase program. At minimum, this program is designed to offset annual dilution from equity compensation, which equates to approximately $75 million to $100 million per year. We also retained the flexibility to increase our repurchases as we increase our free cash flow generation and when IFF shares are trading below intrinsic value. We plan to begin our share repurchase program in the fourth quarter of 2025.

第四，今天，我們啟動了稀釋加股票回購計畫。該計劃至少可以抵消股權補償的年度稀釋，相當於每年約 7,500 萬至 1 億美元。當我們增加自由現金流產生以及 IFF 股票交易價格低於內在價值時，我們也保留了增加回購的彈性。我們計劃於 2025 年第四季開始股票回購計畫。

Finally, we continue to evaluate highly selective value-accretive acquisitions and strategic partnerships. We are very mindful of our challenged track record in this area, and we are committed to being very disciplined going forward. These opportunities must meet clear financial and strategic criteria, including alignment of our core capabilities, potential to expand our addressable markets and have a clear path to synergies.

最後，我們持續評估高度選擇性的增值收購和策略合作夥伴關係。我們非常清楚自己在這一領域所面臨的挑戰，並致力於在未來保持高度自律。這些機會必須符合明確的財務和策略標準，包括與我們的核心能力一致、擴大我們目標市場的潛力以及實現協同效應的明確途徑。

In summary, as we increase our free cash flow generation, we will execute a balanced and disciplined capital allocation strategy, one that enables us to reinvest in the business, return capital to shareholders and maintain financial flexibility and strength. Above all, we will be very disciplined with our decisions guided by a clear focus on generating long-term returns.

總之，隨著我們增加自由現金流的產生，我們將執行平衡且嚴謹的資本配置策略，使我們能夠對業務進行再投資，向股東返還資本，並保持財務靈活性和實力。最重要的是，我們將嚴格遵守決策，明確以創造長期回報為導向。

Now turning to slide 11, I'd like to walk you through our outlook for the remainder of 2025. As we've discussed in previous quarters, the macroeconomic environment continues to be dynamic and at times challenging. From a voluming trade policies to weakening consumer demands, we are seeing a broader set of external pressures. That said, we want to underscore that we remain confident in our ability to execute through this environment and importantly, remain on track to deliver our 2025 guidance we set out earlier this year. With solid first half of the year behind us, we are reiterating our full year 2025 guidance. We continue to expect sales to be in the range of $10.6 billion to $10.9 billion.

現在翻到第 11 張投影片，我想向您介紹我們對 2025 年剩餘時間的展望。正如我們在前幾季所討論的那樣，宏觀經濟環境繼續充滿活力，有時充滿挑戰。從大量的貿易政策到疲軟的消費者需求，我們看到了更廣泛的外部壓力。儘管如此，我們想強調的是，我們仍然對自己在這種環境下執行的能力充滿信心，而且重要的是，我們仍有望實現今年早些時候制定的 2025 年指導方針。由於上半年業績表現穩健，我們重申 2025 年全年業績指引。我們繼續預計銷售額將在 106 億美元至 109 億美元之間。

While the dollar ranges remain consistent with our prior outlook, it is worth noting that this now reflects modestly softer volume expectations that has been partially offset by favorable movements in currency. As Erik shared, this translates into the lower end of our 1% to 4% currency-neutral growth sales guidance range. On the bottom line, we continue to target adjusted operating EBITDA of $2 billion to $2.15 billion, reflecting currency-neutral growth of 5% to 10%. As we look ahead to the second half, we expect growth will moderate, particularly in Q3 due to a very strong year-over-year comparison. In the third quarter of 2024, we saw double-digit growth across key segments, where taste was up 15%, H&B was up 12% and Scent was up 10%, creating a high bar for comparison.

儘管美元區間與我們先前的預測保持一致，但值得注意的是，這現在反映了略微疲軟的交易量預期，但已被貨幣的有利走勢部分抵消。正如艾瑞克所說，這意味著我們 1% 至 4% 的貨幣中性成長銷售指引範圍的下限。最終，我們繼續將調整後的營業 EBITDA 目標設定為 20 億美元至 21.5 億美元，反映 5% 至 10% 的貨幣中性成長。展望下半年，我們預計成長將會放緩，尤其是第三季度，因為年增速非常強勁。2024 年第三季度，我們看到主要細分市場均實現了兩位數成長，其中口味成長 15%，H&B 成長 12%，香味成長 10%，創造了較高的比較標準。

In particular, our health business had an exceptionally strong Q3 last year. And this, combined with ongoing softness in both North America and Chinese markets will present some headwinds in the upcoming quarters. And while the business will be challenged, we have made solid progress improving our innovation pipeline, and we'll continue to reinvest in R&D and commercial to ensure we grow our business at or above market, recognizing that it will take some time.

特別是去年第三季我們的健康業務表現異常強勁。再加上北美和中國市場的持續疲軟，未來幾季將會面臨一些阻力。儘管業務面臨挑戰，但我們在改善創新管道方面取得了堅實的進展，我們將繼續在研發和商業方面進行再投資，以確保我們的業務成長達到或超過市場水平，但我們認識到這需要一些時間。

Additionally, beginning in the third quarter, Pharma Solutions will be fully excluded from our results following the completion of the divestiture on May 1. As a reminder, Q2 included 1 month contribution from pharma business. So we expect to see a step down in absolute EBITDA levels in Q3, reflecting the full absence of this business.

此外，自第三季開始，隨著 5 月 1 日資產剝離的完成，Pharma Solutions 將完全被排除在我們的表現之外。提醒一下，第二季包括製藥業務 1 個月的貢獻。因此，我們預計第三季絕對 EBITDA 水準將下降，反映出該業務的完全消失。

With that, I'd now like to turn the call back over to Erik for closing remarks.

好了，現在我想把電話轉回給艾瑞克，請他做最後發言。

Thanks, Mike. We're just a little more than halfway through the year, and I am proud of what our IFF team has already achieved serving customers, strengthening our innovation pipeline for the coming years, and strengthening our productivity efforts. And we have done this while successfully selling and separating pharma and nitrocellulose to fix our balance sheet.

謝謝，麥克。今年才剛過半，我為 IFF 團隊在服務客戶、加強未來幾年的創新管道和提高生產力方面所取得的成就感到自豪。我們在成功銷售和分離藥品和硝化纖維素以修復資產負債表的同時做到了這一點。

We know that market conditions are getting tougher and that the second half comparisons are difficult given our high growth in the second half of 2024, but we are clear on our strategy, are getting stronger at commercial innovation, production, and productivity execution, and we'll get through this as we build strength for 2026 and beyond.

我們知道市場環境越來越嚴峻，考慮到我們在 2024 年下半年的高成長，下半年的業績比較困難，但我們的策略很明確，在商業創新、生產和生產力執行方面也越來越強大，我們將克服這一困難，為 2026 年及以後的發展積蓄力量。

Thank you, and I'll now open up the call for your questions.

謝謝大家，現在我開始回答大家的提問。

(Operator Instructions)

（操作員指示）

Patrick Cunningham, Citi

派崔克‧坎寧安，花旗銀行

Hi, good morning. On the divestiture to Bunge, can you walk through the strategic rationale? Any dissynergies that you see and help us size the business from a margin perspective?

嗨，早安。關於向邦吉公司剝離業務，您能否闡述其中的策略依據？您認為是否存在任何不協同效應，有助於我們從利潤角度確定業務規模？

Thanks for the question, Patrick. This is Erik. First of all, what we sold was our soy -- or what we're selling is our soy crush, our soy protein concentrate and lecithin products. They are very commoditized. And I would say, much better run by Bunge than were being run by us. They were low single-digit EBITDA margins for us and they were distracting from our very differentiated isolated soy protein business, which now we can focus on driving the application development, the innovation in that business because we no longer have to worry about the commodities. So overall, that's going to improve our margins in the Food Ingredients business significantly and allow us to focus where we need to focus.

謝謝你的提問，派崔克。這是埃里克。首先，我們銷售的是大豆——或者說我們銷售的是大豆壓榨物、大豆濃縮蛋白和卵磷脂產品。它們非常商品化。我想說，由邦吉來管理比由我們來管理要好得多。對我們來說，它們的 EBITDA 利潤率只有個位數，分散了我們對差異化大豆分離蛋白業務的注意力，現在我們可以專注於推動應用開發和該業務的創新，因為我們不再需要擔心商品。總的來說，這將顯著提高我們食品配料業務的利潤率，並使我們能夠集中精力於我們需要關注的地方。

David Begleiter with Deutsche Bank

大衛貝格萊特 (David Begleiter) 與德意志銀行

Thank you. Good morning. Erik, just on Food Ingredients, when do you expect to complete your evaluation of strategic alternatives? And if there -- you decided to pursue a sale of this business any portion of any forward that could be retaining going forward? And lastly, do you still expect that there would be strong interest in this interest in this asset amongst strategics and private equity?

謝謝。早安.艾瑞克，僅就食品配料而言，您預計何時完成對策略替代方案的評估？如果您決定出售這項業務，那麼未來可以保留的任何部分呢？最後，您是否仍預期策略性投資者和私募股權投資者會對這項資產產生濃厚興趣？

Thank you.

謝謝。

Thanks for that question, David. Very important to us. And let me just start by saying, I think we're making very good progress here. As you know, we separated Nourish into Taste and Food Ingredients which I believe has significantly strengthened us in both taste and in Food Ingredients. They're very different businesses. That was step one.

謝謝你的提問，大衛。對我們來說非常重要。首先我要說的是，我認為我們在這裡取得了非常好的進展。如您所知，我們將營養分為口味和食品成分，我相信這在口味和食品成分方面都顯著增強了我們的實力。他們是非常不同的企業。這是第一步。

Step 2 was we brought in a world-class Food Ingredients leader and Andy Muller, and he's got that transformation with his team going very, very strongly, consistently improving our EBITDA margins. And then the next really important step was divesting these commodities that can't consistently achieve our margin targets and allow us to focus on the areas that can.

第二步是我們引進了世界級的食品配料領導者和安迪·穆勒 (Andy Muller)，他和他的團隊非常強有力地推動了這一轉型，不斷提高我們的 EBITDA 利潤率。然後，下一個真正重要的步驟是剝離那些無法持續實現我們的利潤目標的商品，讓我們專注於能夠實現利潤目標的領域。

And now with those three pieces done, it's giving us the chance to really dig into what are the strategic options. And I expect that we'll be able to update you on where we stand with the fourth quarter earnings call early next year, and I believe we'll have absolute clarity in 2026 but -- and I'll just finish by saying that there's already been strong proactive interest by both private equity and strategics incoming that we can now really start to engage with as we consider our options.

現在這三個部分已經完成，我們就有機會真正深入研究戰略選擇。我希望我們能夠在明年年初的第四季度收益電話會議上向您通報我們的進展情況，我相信我們將在 2026 年獲得絕對的清晰度，但是——最後我想說的是，私募股權和戰略投資者已經表現出強烈的積極興趣，我們現在可以在考慮我們的選擇時真正開始參與其中。

Ghansham Panjabi from Robert W. Baird & Co.

Robert W. Baird & Co. 的 Ghansham Panjabi

Thank you, operator. Good morning everybody. I guess just stepping back a little bit on the second quarter. Could you just give us more color on how the quarter unfolded from a monthly cadence standpoint and also what your embedded volume assumptions are for the back half of the year by segment. You called out challenges. Can you be a little bit more specific as it relates to what specific challenges you're referring to?

謝謝您，接線生。大家早安。我想第二季的情況會稍微退後一些。您能否從月度節奏的角度向我們詳細介紹本季的進展情況，以及您對下半年各細分市場的嵌入式銷售假設是什麼。你發出了挑戰。您能否更具體地說明一下您所指的具體挑戰？

Thank you.

謝謝。

Yes. Thanks. It's a great question. Overall, the operating environment in Q2 was consistent with what we expected coming into the quarter. And so despite some of the volatility we see in the world, all businesses actually delivered growth. When you look at it from a volume perspective, all the businesses were actually moving into positive territory.

是的。謝謝。這是一個很好的問題。整體而言，第二季的經營環境與我們對本季的預期一致。因此，儘管我們看到世界存在一些波動，但所有企業實際上都實現了成長。從數量角度來看，所有業務實際上都進入了正成長階段。

And compared to a strong year ago comparison on a two-year basis, they actually had all had mid-single-digit growth on a two-year average basis. So the health of the business is relatively strong from a Q2 standpoint in a more challenging operating environment.

與去年同期的強勁成長相比，以兩年平均值計算，這些公司實際上都實現了中等個位數的成長。因此，從第二季的角度來看，在更具挑戰性的營運環境中，業務健康狀況相對較好。

So we feel good about that. As we look ahead, we are more cautious in the second half outlook. Part is because we're comparing and I said it in my prepared remarks that we're comparing to strong comps in Q3. It was a plus 9 last year year-over-year. So that's a tough comp. But then in addition, we are seeing some weakening trends in H&B, where we do actually expect to see some negative growth in Q3, specifically driven by health and now, Erik talked about it previously and I mentioned in my prepared remarks as well, we are taking actions to address this via reinvestment and capacity investments and confident that over time, we will accelerate growth back to market trends or above.

因此我們對此感到很高興。展望未來，我們對下半年的前景更加謹慎。部分原因是我們正在進行比較，而且我在準備好的發言中也說過，我們正在與第三季的強勁競爭對手進行比較。與去年同期相比，這一數字成長了 9%。所以這是一場艱難的較量。但此外，我們看到 H&B 領域的一些趨勢正在減弱，我們確實預計第三季度會出現一些負增長，這主要受健康因素的影響，Erik 之前談到了這一點，我在準備好的發言中也提到過，我們正在採取行動通過再投資和產能投資來解決這個問題，並相信隨著時間的推移，我們將加速增長，回到市場趨勢或更高水平。

Josh Spector with UBS

瑞銀的喬希·斯佩克特

I was wondering if you could specifically talk about the outlook for Scent in 3Q and 4Q. You've clearly seen divergent trends between growth in end markets between Fine Fragrance and Consumer versus the ingredients, which looked like it was more of a drag. So wondering if you see that drag in ingredients continue into the back half or if that's more contained within the second quarter? And then similarly, your views around growth for some of the stronger areas you've seen in that segment?

我想知道您是否可以具體談談 Scent 在第三季和第四季的前景。您已經清楚地看到了高級香水和消費者終端市場與原料市場之間的成長趨勢存在差異，這看起來更像是一種拖累。所以想知道您是否認為這種拖累因素會持續到下半年，還是會在第二季得到控制？同樣，您對該領域中一些較強領域的成長有何看法？

Thank you.

謝謝。

Yes. Thanks, Josh. So maybe I'll take this one again. In Scent business overall, we expect to continue to see good strong performance in Fine Fragrance through the balance of the year. So the team is doing a really exceptional job driving their performance. A lot of it is driven by new wins and commercial performance, and they continue to be successful there. So that's a great story. In addition, on the Consumer Fragrance they're comparing to a stronger year ago comparison kind of all year. So on a two-year basis, it looks good. But on a headline number, it's actually trending more low single digits. .

是的。謝謝，喬希。所以也許我會再次選擇這個。就整體香水業務而言，我們預計高級香水業務在今年餘下時間將繼續表現強勁。因此，該團隊在提高績效方面做得非常出色。其中很大一部分是由新的勝利和商業表現推動的，並且他們繼續在那裡取得成功。這是一個很棒的故事。此外，就消費者香水而言，他們正在與去年全年表現更強勁的同類產品進行比較。因此從兩年來看，情況看起來不錯。但從總體數字來看，它實際上呈現更低的個位數趨勢。。

And so there's been a lot of work being done to kind of recoup and to make sure that we're driving that performance going forward. And so as we go into the second half of the year, we'll probably be in that low single-digit kind of range in terms of overall growth. Your specific question on Fragrance Ingredients, I think that is the pressure point in the quarter, specifically in Q2 and will be for the back half of the year. And so 4 fragrance ingredients in the back half of the year, we expect it to be down at similar levels that we had in Q2, which was pretty meaningful. Now there's a story that's happening there that the more commodity elements of our portfolio are under the most pressure.

因此，我們做了很多工作來彌補損失，並確保我們能夠繼續推動業績成長。因此，當我們進入下半年時，我們的整體成長率可能仍會處於低個位數的範圍內。您關於香料成分的具體問題，我認為這是本季度的壓力點，特別是第二季以及下半年的壓力點。因此，我們預計下半年 4 種香料成分的銷量將下降至與第二季度類似的水平，這非常有意義。現在有這樣的情況：我們投資組合中的大宗商品元素承受著最大的壓力。

And part of that is absence of really, what I'd say, strong innovation absence of a specialty portfolio, which is a little bit different than kind of where we've been historically at IFF. And so really, the focus now as we go forward is how do we make reinvestments to bring molecules to market. to making sure we're driving that competitive difference. And so as we go through the second half of the year, that commodity portion will be pressured. The specialty ingredients portion, while small and growing, will continue to be the focus as we move into 2026.

其中一部分原因是缺乏真正的創新，我想說的是缺乏專業產品組合，這與 IFF 的歷史情況略有不同。因此，我們現在的重點實際上是如何進行再投資以將分子推向市場，以確保我們能夠保持競爭優勢。因此，隨著我們進入下半年，商品部分將面臨壓力。特色配料部分雖然規模較小且不斷增長，但隨著我們進入 2026 年，它仍將是我們關注的重點。

Kristen Owen with Oppenheimer

奧本海默公司的克莉絲汀歐文

Just want to zoom out a bit. Erik, reflecting on the last year plus, it feels as the company has hit this inflection point in terms of the balance sheet. You're moving through the portfolio efforts but perhaps less obvious are some of the changes that you've made to the Board. So if we're just taking a two- to three-year outlook, help us understand what the Board refresh helps IFF to accomplish as you move into this next phase.

只是想稍微縮小一點。艾瑞克，回顧過去一年多來的情況，感覺公司在資產負債表方面已經達到了這個轉折點。您正在推進投資組合工作，但對董事會所做的一些變動可能不太明顯。因此，如果我們只是進行兩到三年的展望，請幫助我們了解董事會更新如何幫助 IFF 在進入下一階段時實現目標。

Well, thank you, Kristen. So first of all, what we want to do, our goal is to get IFF on the right track to be a world-class leader in innovation, percent, taste and Health & Biosciences. And to do that, we need the right leadership, executive leadership and the right board. And what I would say is we have both now at full strength.

好吧，謝謝你，克里斯汀。首先，我們想要做的，我們的目標是讓 IFF 走上正確的軌道，成為創新、百分比、口味和健康與生物科學領域的世界級領導者。為了做到這一點，我們需要正確的領導、執行領導和正確的董事會。我想說的是，我們現在都已實力雄厚。

And the leadership team, we recently added, as you know, Leticia Calvez, to run Health & Biosciences a terrific leader, has biotech chemistry background that's ideal for health and Biosciences leading that forward. On the Board front, I would say we're also now at full strength. We -- Kevin O'Byrne became our Chairman, who's been a terrific partner to me and the management team and the rest of the Board to work with great retail experience.

如你所知，我們最近增加了領導團隊，萊蒂西亞·卡爾維斯 (Leticia Calvez) 來管理健康與生物科學部門，她是一位出色的領導者，擁有生物技術化學背景，非常適合引領健康和生物科學的發展。在董事會方面，我想說我們現在也已實力雄厚。我們——凱文·奧拜恩 (Kevin O'Byrne) 成為我們的董事長，他是我、管理團隊和董事會其他成員的絕佳合作夥伴，擁有豐富的零售經驗。

We've also added MemmuCon, an ideal world-class R&D leader with great experience, not only in health but also in food R&D and Home & Personal Care. And he's already tremendously helping our R&D teams to make sure that we're driving the right pipelines in the right way. We also brought in Hess Mantas who is a digital AI systems expert. And as you know, we've got complicated systems, and we've got a need to drive AI. And so he's already helping our teams in those areas, which is tremendous.

我們也加入了 MemmuCon，這是一家理想的世界級研發領導者，不僅在健康領域，而且在食品研發和家庭及個人護理領域都擁有豐富的經驗。他已經為我們的研發團隊提供了極大的幫助，以確保我們以正確的方式推動正確的管道。我們也聘請了數位 AI 系統專家 Hess Mantas。如你所知，我們擁有複雜的系統，我們需要推動人工智慧。所以他已經在這些領域為我們的團隊提供幫助，這非常了不起。

We've recently brought in Cindy Jamieson, who's got terrific CFO experience with a number of companies, helping Mike and his team make sure that we're doing the right things to have a streamlined, very efficient and effective finance team. Gina Drosos joined us with great Procter & Gamble background, great CEO experience.

我們最近聘請了辛蒂·傑米森 (Cindy Jamieson)，她在多家公司擁有豐富的財務長經驗，可以幫助麥克和他的團隊確保我們做正確的事情，從而擁有一支精簡、高效的財務團隊。吉娜·德羅索斯 (Gina Drosos) 加入我們，她擁有寶潔公司的豐富背景和豐富的 CEO 經驗。

And as you know, we have Don Willoughby on our Board from Clorox with great home and personal care experience. So we now have a Board that has world-class governance capability, but also market experience and innovation experience to help us drive the company forward. So I feel really good about our executive team and our Board.

如您所知，我們董事會成員中有來自 Clorox 公司的 Don Willoughby，他擁有豐富的家庭和個人護理經驗。因此，我們現在擁有一支不僅擁有世界一流治理能力，還擁有市場經驗和創新經驗的董事會來幫助我們推動公司向前發展。所以我對我們的執行團隊和董事會感到非常滿意。

John Roberts with Mizuho

瑞穗的約翰·羅伯茨

Thank you. Health & Biosciences is pretty diversified. I think you called out animal feed and food at the stronger end, and it sounds like health is going to be at the lower end. Maybe could you give us some quantification for how high the good businesses are performing and how low some of the declines are that you're expecting?

謝謝。健康與生物科學相當多元。我認為您所說的動物飼料和食品處於強勢端，而健康則處於弱勢端。或許您能給我們一些量化的數據，看看哪些好企業的表現會好，哪些企業的表現會下降？

Sure, John. So first of all, food Biosciences and Home and Personal Care are performing very well. And I see them continuing to perform well. Just for example, in our Home and Personal Care, in addition to the strength we have in enzymes, really good capabilities there. We also commercialized our first application with DEB, our design enzymatic biomaterials with a leading home and personal care company, CPG company. And we see lots of opportunity there, but it was nice after many, many years of development to see the first application commercialized. So very good strength in both of those. Our Animal Nutrition business, we're very strong there.

當然，約翰。首先，食品生物科學和家庭及個人護理表現非常好。我看到他們繼續表現良好。舉例來說，在我們的家庭和個人護理領域，除了我們在酵素方面的優勢外，我們還擁有非常好的能力。我們也與領先的家居和個人護理公司 CPG 公司合作，將我們的第一個應用與 DEB、我們設計的酵素生物材料進行了商業化。我們在那裡看到了很多機會，但經過多年的發展，看到第一個應用程式商業化，真是令人欣慰。所以這兩方面的實力都非常好。我們的動物營養業務非常強大。

What I would say is the market's slowing down a bit, but we continue to perform well versus the market. The real challenging area is health and we're hearing from our customers that in the second half, they're seeing slowdown and so what we're doing there is, as we talked about last year, continuing to invest more aggressively and really excited about our R&D pipeline that will start to play out in 2016 and come to full strength in 207. Leticia is also strengthening our commercial capabilities in health. So we will see a slow second half in our health business, a very important business but we'll see it start to come back in '26 and I would say, get to full strength in '27.

我想說的是，市場正在放緩，但我們的表現仍然優於市場。真正具有挑戰性的領域是健康領域，我們從客戶那裡聽說，下半年，他們看到了成長放緩，因此，我們在這方面所做的就是，正如我們去年談到的那樣，繼續進行更積極的投資，並且對我們的研發管道感到非常興奮，該管道將於 2016 年開始發揮作用，並於 207 年達到全面發展。萊蒂西亞也正在加強我們在健康領域的商業能力。因此，我們的健康業務（一項非常重要的業務）下半年將會緩慢成長，但我們會看到它在 26 年開始復甦，我想說，在 27 年將達到全面復甦。

Lisa DeNeve from Morgan Stanley.

摩根士丹利的 Lisa DeNeve。

Thank you for taking my question. I have one question and one small follow-up on the previous question actually. So my first question is, can you outline what drove the strength in the second quarter for taste in particular? And also how you see the midterm growth prospects for the subsegment especially in the light of potential regulatory changes under the US administration. That's my first question. And then a small follow-up. If I recall, your HMB health business was soft to actually negative in the fourth quarter of last year. So could you just remind me how it traded last year because I'm a bit confused of why it would be negative in the second half, especially the fourth quarter when it was already weak in the fourth quarter of last year.

感謝您回答我的問題。實際上，我有一個問題，並且對上一個問題有一個小小的後續問題。所以我的第一個問題是，您能否概述一下第二季度口味強勁的推動因素？您如何看待該細分市場的中期成長前景，尤其是考慮到美國政府可能出現的監管變化。這是我的第一個問題。然後是一個小小的後續行動。如果我沒記錯的話，去年第四季度，你們的 HMB 健康業務表現疲軟，甚至出現負成長。那麼，您能否提醒我去年的交易情況，因為我有點困惑為什麼下半年會出現負增長，尤其是第四季度，而去年第四季度的交易情況已經很疲軟了。

Thank you.

謝謝。

I'll start with the taste question. As is delivering solid growth, and I'm very glad that we separated Nourish into taste and food ingredients because it enables (inaudible), our state leader and his team to really focus on what it takes to continue to win and taste. And what I would say is we now have 7 quarters in a row of performing with or ahead of the market in taste. And I see us continuing to perform strongly versus the market. Now the market is slowing down in the second half and taste. So we will have lower growth rates, but it will still be significant growth, particularly getting slower in the U.S. and in Asia, China and Southeast Asia, but still solid growth, and we've got a building commercial pipeline and we've got strength in our R&D pipeline. So very pleased with where we are in taste.

我先從口味問題開始。正如實現穩健增長一樣，我很高興我們將 Nourish 分為口味和食品成分，因為它使（聽不清）我們的州領導人和他的團隊能夠真正專注於繼續獲勝和品嚐所需的條件。我想說的是，我們現在已經連續 7 個季度在品味上與市場同步或領先市場。我認為我們的表現將繼續強於市場。現在市場正在放緩，下半年有味道。因此，我們的成長率將會降低，但仍將是顯著的成長，特別是美國、亞洲、中國和東南亞的成長速度會放緩，但仍將是穩健的成長，而且我們已經建立了商業管道，我們的研發管道也實力雄厚。我們對自己的品味非常滿意。

Yes. Maybe just, Lisa, on the H&B business on the second half of the year, I think the comparable when I look at the business was plus 12% in Q3, and I think it was plus 6% in Q4 so the comp is still pretty meaningful. When you double-click on the health side, it was a little bit softer in Q4 last year. But right now, I think what we're saying is we're flagging some weakness in Q3 specifically. And really because of the year ago comparison, I think it was mid-teens in terms of growth. And so part of it really is a comp issue. As we get into Q4, it will be less challenged. And then as we go into 2026, it's a full player.

是的。麗莎，也許只是關於今年下半年的 H&B 業務，我認為當我看業務時，可比性在第三季度增長了 12%，我認為在第四季度增長了 6%，所以比較仍然很有意義。如果雙擊健康方面，就會發現去年第四季的情況稍微疲軟一些。但現在，我認為我們所說的是，我們特別指出了第三季的一些弱點。實際上，與去年同期相比，我認為成長率達到了十幾歲左右。因此，部分原因確實是補償問題。隨著我們進入第四季度，挑戰將會減少。當我們進入 2026 年時，它就成為一個完整的播放器。

Salvator Tiano with BofA

美國銀行的 Salvator Tiano

So although we haven't really seen much actual regulatory change coming from the Department of Health and Human Services and RK junior, there's certainly a lot of discussions request rumors. So what are you hearing from your customers regarding the response to any potential changes, including needs to reformulate?

因此，儘管我們還沒有真正看到衛生與公共服務部和 RK junior 出台太多實際監管變化，但肯定有很多討論要求傳言。那麼，您從客戶那裡聽到了什麼關於對任何潛在變化的反應，包括重新制定的需要？

Thank you, Sal. What we're hearing is, I would say, an even stronger desire for cleaner labors, cleaner labels for innovation to help reduce sugar, salt, fat, increased protein all the things that we are good at, and we're seeing the continued healthy reformulation to do those things. And I would say the Maha movement in the U.S. is helping that but we're also seeing that around the world. In Latin America, I've spent some time in Latin America in the last couple of months.

謝謝你，薩爾。我想說，我們聽到的是，人們對更乾淨的勞動力、更清潔的創新標籤的渴望更加強烈，以幫助減少糖、鹽、脂肪，增加蛋白質，所有這些都是我們擅長的，而且我們看到了持續的健康配方改革來實現這些目標。我想說，美國的 Maha 運動正在對此有所幫助，但我們也在世界各地看到這種情況。在拉丁美洲，過去幾個月我在拉丁美洲待了一段時間。

And you've got these labeling where products are being labeled if they have high sugar, high salt or high fat, and the desire to help reformulate to get rid of those labels is very strong, and that's opening up opportunities for us. And we've had very good growth in Latin America. So I think that it's a global trend, certainly a little bit more push in the US now, and it's very good for IFF.

而且這些產品上都會標明含糖量高、鹽量高或脂肪量高，人們希望透過重新制定配方來去除這些標籤，這對我們來說是一個機會。我們在拉丁美洲取得了非常好的成長。所以我認為這是一種全球趨勢，現在在美國肯定會有更大的推動，這對 IFF 非常有利。

Laurence Alexander from Jefferies.

傑富瑞的勞倫斯‧亞歷山大 (Laurence Alexander)。

So good morning. So just to follow up on one of the earlier questions. Can you give a bit more granularity about what's happening sequentially in end market trends in Taste and Scent, your confidence on the end markets into 2026. And to the extent that you have investments in innovation, will those be showing up and contributing to those 2 businesses in 2026. You alluded in your comment to sort of tailwinds for health.

早安.我只是想繼續回答之前的一個問題。您能否更詳細地介紹味覺和嗅覺終端市場趨勢的連續變化，以及您對 2026 年終端市場的信心。並且，就您在創新方面的投資而言，這些投資是否會在 2026 年顯現出來並為這兩項業務做出貢獻。您在評論中提到了對健康有利的因素。

Yes. So thanks, Laurence. So in case, we do see a slowdown in -- particularly in the US, China and parts of Asia Latin America continues strong. Europe continues strong. What I would say there is we've got visibility in the second half to that happening, and that's what we're hearing from customers. We're pushing hard to bring more innovation and our commercial pipeline is strengthening. Our win rate is strong. But we're also pushing harder in developing markets. The leadership has spent more time in India and parts of Asia. And obviously, we're pushing hard in Latin America continued.

是的。所以謝謝你，勞倫斯。因此，我們確實看到了經濟放緩——特別是美國、中國和亞洲部分地區，而拉丁美洲則繼續保持強勁。歐洲持續保持強勁勢頭。我想說的是，我們已經預見了下半年會發生這種情況，這也是我們從客戶那裡聽到的。我們正在努力帶來更多創新，我們的商業管道正在加強。我們的勝率很高。但我們也在大力開拓發展中市場。領導層在印度和亞洲部分地區花費了更多時間。顯然，我們正在繼續大力推動拉丁美洲的發展。

And in the Middle East, we're seeing opportunities there. But no doubt there will be a slowdown in the second half, continued growth but a slowdown, and we're hoping that, that reverses in '26 but we're not waiting for that. We're pushing hard on our innovation pipeline, both our commercial and the R&D capabilities to ensure that we still see solid growth in 2026. In scent, as Mike alluded to, the Fine Fragrance business is doing well and continues to -- has been delivering double-digit growth I think we've seen recent wins that give us confidence into the second half and into '26. We've got a very strong team there. Sabrie and her team, supported by Anna are very strong. And what I would say are very enthusiastic, very energized and are out making stuff happen.

我們在中東看到了機會。但毫無疑問，下半年經濟將放緩，繼續成長但會放緩，我們希望這種情況在26年發生逆轉，但我們不會等待這種情況。我們正在大力推動創新管道，包括商業和研發能力，以確保我們在 2026 年仍能穩健成長。在香水方面，正如麥克所提到的，高級香水業務表現良好，並持續實現兩位數的成長，我認為我們最近的勝利讓我們對下半年和26年充滿信心。我們在那裡有一支非常強大的團隊。在安娜的支持下，薩布里和她的團隊非常強大。我想說的是，他們非常熱情，充滿活力，並且正在努力實現目標。

In Consumer Fragrance, as Mike alluded to there, we had low single-digit growth in the first half. We see continued low single digit in the second half. driven by market conditions. But also, I would say that we got a little distracted in Consumer Fragrance last year and the year before. We've got the right leadership in place. We've got our commercial pipeline strengthening and I've got strong confidence that we'll see accelerated growth in 2026 in Consumer Fragrance. In Fragrance Ingredients, Again, as Mike alluded to, negative growth first half, continued negative growth in the second half as we put more emphasis on the specialties and grow specialties and naturals that we sell outside of our company to others.

在消費香水領域，正如麥克所提到的那樣，我們上半年實現了低個位數成長。受市場狀況推動，我們預計下半年將繼續保持低個位數成長。但同時我想說，去年和前年我們在消費香水方面有點分心。我們擁有正確的領導。我們的商業通路正在加強，我堅信到 2026 年，消費香水市場將加速成長。在香料成分方面，正如麥克提到的那樣，上半年出現負增長，下半年繼續出現負增長，因為我們更加重視特色產品，並增加我們在公司外部銷售給其他人的特色產品和天然產品。

We see that growing, but we see the commodities continuing to be depressed both on volume and price. That's a little less than half of that business. So that will be challenged. We see that flattening out in '26 and returning to growth in '27 as we get more capability, more capacity and capability and molecules in the specialty area and have deemphasized the commodities.

我們看到這種趨勢正在成長，但大宗商品的數量和價格都持續低迷。這還不到該業務的一半。所以這將會受到挑戰。我們看到，隨著我們在專業領域獲得更多能力、更多容量和能力以及分子，並不再強調商品，這一趨勢在 2026 年趨於平穩，並在 2027 年恢復成長。

Kevin McCarthy with VRP

VRP 的 Kevin McCarthy

So Erik, at a high level, you delivered some earnings upside in the first half, yet left the annual range is unchanged and now expect some growth to maybe moderate in the back half. So just wondering if you could parse that out. I hear you on the health trend and the comparison issue there. Just curious on the balance of the portfolio, if you net out the trends, do you think it's any better or worse than you would have previously expected. And I'd like to get a feel for whether or not you think there's an element of conservatism embedded in the current guide, particularly with currency having trended more favorably in recent months?

因此，埃里克，從總體上看，你們在上半年實現了一定的盈利增長，但年度盈利範圍保持不變，現在預計下半年盈利增長可能會有所放緩。我只是想知道您是否可以分析出這一點。我聽說了您關於健康趨勢和比較問題的看法。只是對投資組合的平衡感到好奇，如果你扣除趨勢，你認為它會比你之前預期的更好還是更差。我想知道您是否認為當前指南中存在保守主義因素，特別是考慮到近幾個月來貨幣走勢更加有利？

I think that our guidance is appropriate. I do not feel like it's overly conservative at all. I think there are 2 elements facing challenges facing us. One is market challenges. The other is things that we'll continue to clean up, fix, get on the right track. I feel really good about what we've done in taste. I feel really good about what we're doing in health and Biosciences in the food sciences, the food Biosciences, in the HPC and a number of other areas, fine fragrances, consumer fragrances, the things that we're doing across many of the businesses. Food ingredients transformation is going great. The areas that we have challenged right now are health.

我認為我們的指導是適當的。我根本不覺得它過於保守。我認為我們面臨的挑戰有兩個因素。一是市場挑戰。另一件事是我們將繼續清理、修復，讓其回到正軌。我對我們的品味感到非常滿意。我對我們在健康和生物科學、食品科學、食品生物科學、高性能計算和許多其他領域、高級香水、消費香水以及我們在許多業務領域所做的事情感到非常滿意。食品原料轉化進展順利。我們目前面臨挑戰的領域是健康。

That's a combination of the market but also our internal not being where we need to be, both on the innovation pipeline, which I said is coming. It's strengthening, and it will start to land next year and in 2027 will be strong. but we're also needing to strengthen our commercial capabilities in health. We're the leaders in this area, and we need to drive growth even when the markets are challenged. So that's one area. The other area is fragrance ingredients.

這是市場因素和我們內部因素共同作用的結果，創新管道尚未達到我們需要的水平，我說過，創新管道即將到來。它正在不斷增強，並將於明年開始落地，到2027年將會變得強勁。但我們也需要加強我們在健康方面的商業能力。我們是該領域的領導者，即使在市場面臨挑戰時我們也需要推動成長。這是一個領域。另一個領域是香料成分。

We clearly had a great year last year when commodities and specialties were growing like crazy and the prices were strong. This year, the commodities, the volume has slowed, the prices are weak, and we're deemphasizing the commodities, recognizing that's not where we bring our strength over time. So we'll decrease the commodity piece of our portfolio and we'll strengthen the specialty piece.

去年顯然是豐收的一年，大宗商品和特殊產品瘋狂成長，價格堅挺。今年，大宗商品的交易量已經放緩，價格疲軟，我們正在減少對大宗商品的重視，因為我們意識到這不是我們長期的優勢。因此，我們將減少投資組合中的商品部分，並加強專業部分。

So we're on it. We've got the right team focused and it will flatten out in '26 and it will start to grow again in '27. But those are our 2 biggest areas of drag that are dragging below what the market is doing in the second half.

所以我們就這麼做。我們已經擁有了一支專注的優秀團隊，2026 年我們的業績將趨於平穩，2027 年將再次開始成長。但這是我們面臨的最大拖累領域，它們拖累了下半年市場的表現。

Michael Sison with Wells Fargo

富國銀行的麥可·西森

Hey, good morning guys.Nice quarter. If you take out pharma from your first half EBITDA at somewhere around [$1,050]. Your outlook for the second half implies mid-$900's at the midpoint. It's about 10% sequentially. Is that -- is that sort of a normal sequential decline? Or does that represent more incremental slowing in consumer demand? And how does that compare on a pro forma basis because I don't recall getting the data for second half '24 on a like-to-like basis?

嘿，大家早安。這是一個美好的季度。如果你從上半年的 EBITDA 中扣除製藥業務，那麼[1,050 美元]。您對下半年的展望意味著中點價格將達到約 900 美元。環比增長約 10%。這是正常的連續下降嗎？或者這代表消費者需求進一步放緩？這與備考基礎相比如何，因為我不記得以同類基礎獲得 24 年下半年的數據？

Yes, Mike, thanks for the question. Yes, I don't have the numbers on a like-for-like basis, readily available. So happy to circle back. I think when you look at the reported numbers last year, you'll see that there is a step down second half to first half. Part of that is the seasonality of the business. If you remember, Q4 is the lowest margin quarter we have.

是的，麥克，謝謝你的提問。是的，我沒有現成的同類數據。很高興再次回來。我認為，當你查看去年報告的數字時，你會發現下半年的數據比上半年下降。部分原因是業務的季節性。如果你還記得的話，第四季是我們利潤率最低的季度。

And so last year, I think there was about 17%, which if you think the kind of where we are in the 20s now, you can see that step down. So that's a big portion of that. It really depends on where you anchored in, in terms of the guidance range.

所以去年，我認為大約是 17%，如果你想想我們現在的 20 多歲的水平，你可以看到這一下降。這是其中很大的一部分。就引導範圍而言，這實際上取決於您錨定的位置。

If you look at it at the midpoint of the range is a small step down part of it again is the seasonality of it. Part of it is everything we talked about and around a little bit softening in terms of volume performance relative to where we were in the first half.

如果你看一下範圍的中點，你會發現它有一個小的下降部分，這又是它的季節性。部分原因是我們所討論的一切，以及相對於上半年而言銷售表現略有疲軟。

Nicola Tang with BNP Paribas

法國巴黎銀行的 Nicola Tang

Question is a bit of a follow-up on an earlier one around food ingredients. Could you talk how integrated are the activities within food ingredients overall? And do you expect any standard costs from the Bunge deal? And I was wondering if you see any scope for portfolio cleanup elsewhere beyond food ingredients?

這個問題是之前關於食品成分的一個後續問題。您能否談談食品配料中的活動總體上是如何整合的？您預計與邦吉的交易會有什麼標準成本嗎？我想知道，除了食品原料之外，您是否認為其他領域的投資組合清理還有空間？

Thanks, Nicola. First of all, the biggest change was separating nourish into taste and food ingredients. And that took most of last year. We finished it at the beginning of this year, and then we've moved forward with food ingredients. And Andy and his team have been working and will continue to work now even more to stand up the food ingredients as a stand-alone business, which gives us more strategic flexibility there. That's working -- the answer on the Bunge sale, there are some stranded costs. We're already working to deal with those. And if we are to separate food ingredients, there will be stranded costs, and we're already working on how do we address those now versus waiting until later because it will be a good thing to do, whether we separate it or not.

謝謝，尼古拉。首先，最大的改變是將營養分為口味和食材。這花了去年大部分的時間。我們在今年年初完成了這項工作，然後開始推動食品原料的研發。安迪和他的團隊一直在努力並將繼續努力，將食品配料打造為一個獨立的業務，這將為我們帶來更多的策略靈活性。這是有效的——關於邦吉出售的答案是，存在一些擱淺成本。我們已經在著手解決這些問題。如果我們要分離食品成分，就會產生滯留成本，我們已經在研究如何現在解決這些問題，而不是等到以後再解決，因為無論我們是否將其分離，這都是一件好事。

So we're working hard on productivity, and that's part of it of what type of costs can you afford and should be allocated to a food ingredients business. And those that the food ingredients business don't want, how do we get those out of the system. What I would say is on the pharmaceutical business that we sold, we waited longer than we should have. So we learned from that to deal with the stranded costs upfront rather than after the fact.

因此，我們正在努力提高生產力，這也是您可以承受哪些類型的成本以及應該分配給食品配料業務的一部分。而那些食品配料企業不想要的，我們如何把它們從系統中剔除？我想說的是，對於我們出售的製藥業務，我們等待的時間比我們應該等待的時間還要長。因此，我們從中吸取了教訓，要提前處理擱淺成本，而不是事後處理。

Lauren Lieberman with Barclays.

巴克萊銀行的勞倫·利伯曼。

Great thanks. So I want to talk a little bit about what you're seeing at a market level from kind of global multinational customers versus local and regional, any sort of difference in performance and even in their level of optimism or lack there of, maybe I should say, as we look towards the balance of the year and what the thing from a consumer standpoint?

非常感謝。因此，我想談談您在市場層面上看到的情況，從全球跨國客戶與本地和區域客戶的角度來看，在業績表現甚至樂觀程度方面是否存在差異，也許我應該說，當我們展望今年的平衡時，從消費者的角度來看情況如何？

Thanks, Lauren. I would say that the global companies are putting more emphasis on innovation, which is good. So we've got lots of innovation projects. What I would say is that they're getting challenged, particularly in the developing markets, whether it's Indonesia or Malaysia or Thailand or the Middle East by local players and smaller companies are coming up with some great innovations. I think athletic greens as an example or Fairlife as an example, now owned by Coke is driving great growth with their core power products and so we're seeing opportunity with both.

謝謝，勞倫。我想說，全球公司都更重視創新，這是好事。所以我們有很多創新項目。我想說的是，他們正面臨挑戰，特別是在發展中市場，無論是印尼、馬來西亞、泰國或中東，當地企業和小型公司都在不斷推出一些偉大的創新。我認為，以 athletic greens 或 Fairlife 為例，現在它們都歸可口可樂所有，並且憑藉其核心動力產品實現了巨大增長，因此，我們看到了這兩者帶來的機會。

What I would say is we are well positioned with the global players, and we're well distributed between global players, midsize players and small players but we are putting more emphasis on mid- and small-sized players in developing high-growth markets, and we hope to see better and better results from that.

我想說的是，我們在全球企業中處於有利地位，並且我們在全球企業、中型企業和小型企業之間進行了良好的分佈，但在開發高成長市場時，我們更加重視中型和小型企業，我們希望看到越來越好的結果。

We're doing it. But what I would say is some of our competitors are better positioned in some of our businesses in the developing markets with smaller customers, and that's an opportunity for us, and we're working on it.

我們正在做這件事。但我想說的是，我們的一些競爭對手在發展中市場的一些業務中處於更有利的地位，這些市場的客戶規模較小，這對我們來說是一個機會，我們正在努力抓住這個機會。

Jeff Zekauskas of JPMorgan

摩根大通的 Jeff Zekauskas

In your commentary, you say that your currencies will be negative year-over-year. The euro is flat for the first half and maybe 8% or 9% stronger for the second. The Brazilian real is maybe 10% stronger, even the Chinese renminbi is a little bit stronger than it was last year. So was there a large hedging program that just didn't hit the current environment? Secondly, in food ingredients, is food ingredients a more capital-intensive part of IFF relative to the other businesses. And in rough terms, how much of food ingredients do you think you might eventually retain $1 billion in sales, something more or something less?

在您的評論中，您說您的貨幣將同比出現負值。歐元上半年持平，下半年可能升值 8% 或 9%。巴西雷亞爾可能升值了 10%，甚至人民幣也比去年略升值了一點。那麼是否存在一個大型對沖計劃，只是沒有對當前環境產生影響？其次，在食品配料方面，相較於其他業務，食品配料是IFF中資本密集程度較高的部分。粗略地說，您認為最終在 10 億美元的銷售額中可以保留多少食品原料，多一些還是少一些？

Yes. I'll take the first one. Jeff, great question on FX. Obviously, it's a big movement. We started out the year the euro was in that $105 range and kind of ramped to where it is. As you know, very, very well from covering IFF, it is outside the US. It is our largest exposure. So that has been a tailwind. The reality is when you look at the -- a comparable year-over-year basis, there are some emerging market currencies that are a headwind. And so you highlighted 2, but there's other ones that are negating some of the benefits that you would think. And so on the top line perspective, I think we said it's about 1% of a drag on a full year perspective.

是的。我要第一個。傑夫，關於 FX 的問題問得很好。顯然，這是一個大動作。今年年初，歐元兌美元匯率處於 105 美元左右，然後逐漸升至目前的水平。正如您從 IFF 報告中非常清楚地知道的那樣，它位於美國境外。這是我們最大的曝光。所以這一直是個順風。事實是，當你觀察與去年同期相比的情況時，你會發現一些新興市場貨幣正面臨阻力。因此，您強調了 2，但還有其他因素抵消了您所認為的一些好處。因此，從營收角度來看，我認為我們說過，這對全年營收的拖累約為 1%。

You see that through the first half. And that will actually look to be a little bit more positive in the second half of the year. So to your point, it's getting better from here at this point in time. But really, the offset is going to be the emerging market currencies. There's no hedging program in place today. So there's nothing to flag from that perspective. It's truly the fully fungible aspects year-to-year delta in FX. So that's maybe part one. Erik, do you want to take

你可以在上半場看到這一點。而今年下半年的情況其實看起來會更正面。所以就你的觀點而言，從現在開始情況正在好轉。但實際上，抵銷這一影響的將是新興市場貨幣。目前沒有實施對沖計劃。因此從這個角度來看，沒有什麼可標記的。這確實是外匯中完全可替代的逐年增量。這也許是第一部分。艾瑞克，你想帶

Sure. So Food Ingredients is more capital intensive than the other businesses. Although Health & Biosciences has capital needs. What I would say is the biggest capital exposure we had was the business that we just sold to Bunge, which they know how to handle the capital in those commodity businesses better than we do. So I think that was a helpful move and there's some plants that we need to upgrade and do some things too that we have to proceed with. But as I look at the Food Ingredients business, it is still very different than taste, scent and health and Biosciences. There are leverage points. There are collaboration opportunities between food ingredients and taste and health and Biosciences, which we do today, and I foresee in any strategic change.

當然。因此，食品配料產業的資本密集程度比其他產業更高。儘管健康與生物科學有資金需求。我想說的是，我們面臨的最大資本風險是剛出售給邦吉的業務，他們比我們更懂得如何處理這些大宗商品業務中的資本。所以我認為這是一個有益的舉措，我們需要升級一些工廠，也需要做一些我們必須繼續做的事情。但當我審視食品配料業務時，它與味道、氣味、健康和生物科學仍然有很大不同。有槓桿點。食品成分、口味、健康和生物科學之間存在著合作機會，我們今天正在這樣做，並且我預見到任何戰略變化。

We would continue to have collaboration between food ingredients, wherever it ends up in those businesses within IFF but I don't see carving up food ingredients significantly from where it is today. I think it's an entity, it makes sense. I think it's an opportunity for a strategic player to add or a private equity firm to enhance the business by investing more in it. It's a great substrate to add other products to and enhance the business. So I think there's lots of options there, but I don't see it as being carved up significantly. I see it as a stand-alone business that we have various options with -- but whatever we do, I see there's still going to be collaboration between our Taste business, Health & Biosciences and food ingredients.

我們將繼續在食品配料領域合作，無論最終在 IFF 內部的業務中進行，但我認為與目前相比，食品配料領域的劃分不會有太大變化。我認為它是一個實體，它是有意義的。我認為，對於策略參與者或私募股權公司來說，這是一個透過增加投資來增強業務的機會。它是添加其他產品和增強業務的絕佳基礎。所以我認為有很多選擇，但我不認為它會被嚴重分割。我認為這是一個獨立的業務，我們有多種選擇——但無論我們做什麼，我認為我們的味覺業務、健康與生物科學以及食品配料之間仍然會有合作。

Chris Parkinson with Wolfe Research.

沃爾夫研究公司的克里斯·帕金森。

Great thank you so much for taking my question. Can you just hit a little bit more on probiotics markets? It seems like there's been some inconsistencies not only in the market, but also geographic and also some of your peer commentary. So it would be particularly helpful if we could just get your stance on where you are today and where you think the market is generally heading into 2026?

非常感謝您回答我的問題。能否再多談益生菌市場的狀況？似乎不僅在市場上存在一些不一致，而且在地理上以及一些同行評論上也存在一些不一致。因此，如果我們能了解您目前的立場以及您認為市場在 2026 年的整體走向，那將會特別有幫助嗎？

Thank you so much.

太感謝了。

Thanks, Chris. First of all, I think it's a great business to be in. And we've got a great position today. We've been the historical builders of the market. It's an important area of health for humans. There are some opportunities in pets and we're well positioned. What I think we had lost the edge in was we had stopped really pushing hard on R&D innovation for the future to keep getting better probiotic strains and growing in adjacent areas. We started doing that early last year, increasing that R&D spend and increasing the focus [Mohammad Khan] has joined us and is a great knowledge base of the health markets and is helping guide that and direct that research with our team with Casper, Roman and his team.

謝謝，克里斯。首先，我認為這是一項很棒的事業。我們今天處於非常有利的位置。我們一直是市場的歷史建構者。這是人類健康的一個重要領域。寵物產業存在一些機會，而且我們處於有利地位。我認為我們失去優勢的原因是，我們不再真正努力推動未來的研發創新，以繼續獲得更好的益生菌菌株並在鄰近領域發展。我們從去年年初就開始這樣做了，增加了研發支出，並增加了關注。 [Mohammad Khan] 加入了我們，他對健康市場有著豐富的知識，並與 Casper、Roman 及其團隊一起幫助指導和指導這項研究。

And so with that, we've been able to strengthen our pipeline that again starts to come out in '26 and goes to full strength in '27. We also -- as we have done that, have not pushed hard enough. We've got great customers that are doing really great things, but we haven't pushed hard enough at expanding what we do with our current customers and driving for new customers.

這樣一來，我們就能夠加強我們的管道，該管道將於 26 年開始投入使用，並於 27 年達到滿負荷狀態。我們也——儘管我們已經這樣做了，但還沒有付出足夠的努力。我們擁有出色的客戶，他們正在做著非常出色的事情，但我們在擴大與現有客戶的合作以及爭取新客戶方面做得還不夠。

And that's where Leticia has come in and is working with the team to strengthen our commercial capabilities. So overall, the market is growing. I think it's going to continue to grow. I think that it's a great area. In a world of GLP-1s, for example, there's even more opportunities that I see that we see, and we're going to access those.

這就是萊蒂西亞的用武之地，她正在與團隊合作，加強我們的商業能力。所以總體而言，市場正在成長。我認為它將繼續增長。我認為這是一個很棒的地方。例如，在 GLP-1 的世界中，我看到了更多的機會，我們將抓住這些機會。

We've got a tough second half challenge ahead of us with our current customers and their situation, but we're going to make sure that we do the right things to strengthen for '26 and '27 and beyond. And I see in this business really tremendous opportunities if we get some of these really exciting pipeline products out there with the right customers driving the growth opportunities.

我們面臨著來自現有客戶及其處境的嚴峻下半年挑戰，但我們將確保採取正確的措施，為 2026 年、2027 年及以後做好準備。我認為，如果我們能夠推出一些真正令人興奮的管道產品，並吸引合適的客戶來推動成長機會，那麼這個行業將擁有巨大的機會。

There are no further questions registered at this time. I would now like to pass the call back over to Erik for any closing remarks.

目前沒有其他問題。現在我想將電話轉回給艾瑞克，請他做最後發言。

Thank you. So I've now been in IFF for 1.5 years. And while I'm pleased with our progress on results, I'm really not satisfied. And as we've been very clear, we see the second half is even more challenging. But I can tell you, I'm more convinced than ever that we are taking the right actions to address our challenges, which we've talked about in health, for example, in Fragrance Ingredients. But I also believe that we are doing the right things across our businesses. We keep strengthening our innovation and commercial pipelines in case fine fragrance and consumer fragrance and our enzyme businesses while also strengthening our productivity muscle.

謝謝。我現在已經在 IFF 工作了 1.5 年了。儘管我對我們的進展結果感到滿意，但我真的並不滿意。正如我們已經非常清楚的那樣，我們看到下半年將面臨更大的挑戰。但我可以告訴你，我比以往任何時候都更加確信，我們正在採取正確的行動來應對我們的挑戰，例如我們在健康方面、在香料成分方面討論過的挑戰。但我也相信，我們在各個業務領域都在做正確的事。我們不斷加強高級香水、消費香水和酵素業務的創新和商業管道，同時也增強我們的生產力。

And we are absolutely focused on delivering what we committed to deliver in the second half of '25 while we also make sure that we're strengthening for '26 and I really see us starting to continue to improve in '26 as we also figure out what we're doing with food ingredients. And then in '27 as the investments that we started to make last year in CapEx and enzymes as well as our R&D engines across the businesses will really start to impact in '26, but will really come to full strength in '27.

我們絕對專注於兌現我們在 2025 年下半年的承諾，同時我們也確保我們在 2026 年能夠加強實力，我確實看到我們在 2026 年開始繼續改進，因為我們也弄清楚了我們在食品配料方面要做什麼。然後從 2027 年起，我們去年開始在資本支出和酵素以及各個業務的研發引擎方面進行的投資將在 2026 年開始真正產生影響，但將在 2027 年真正全面發揮作用。

That's when I see us really starting to perform but between now and then, we're going to be clear on what our goals are, what our expectations are, and we're going to do all we can to do what we say and keep strengthening IFF for the future. So thank you very much for your interest. And we appreciate and we'll now close the call.

那時我看到我們才真正開始有所表現，但從現在到那時，我們將明確我們的目標是什麼，我們的期望是什麼，我們將盡我們所能做到我們所說的，並在未來繼續加強 IFF。非常感謝您的關注。我們對此表示感謝，現在我們將結束通話。

Thank you. That concludes today's conference call. We appreciate your participation. We hope everyone have an amazing day, and you may now disconnect your lines.

謝謝。今天的電話會議到此結束。感謝您的參與。我們希望每個人都度過美好的一天，現在您可以斷開您的線路了。