IFF · 8-K · 20260804PR000032

Gross Margin Drivers

INTERNATIONAL FLAVORS & FRAGRANCES INC · 2026-08-04 · Importance 54 · Surprise 40

Consolidated gross profit was $829 million in the first quarter of 2026 versus $852 million in the first quarter of 2025, while gross margin increased to 43.5% from 41.6% because sales declined less than cost of sales. Cost of sales fell 10.1% year over year to $1,077 million, compared with the 7.0% decline in net sales. Recast segment gross profit was $287 million for Taste, $276 million for Scent, and $266 million for Health & Biosciences in the first quarter of 2026. Recast segment gross margins were approximately 42.2% for Taste, 42.4% for Scent, and 46.3% for Health & Biosciences.

Key facts

• Cost of sales for the three months ended March 31, 2026: $1,077 million source
• Cost of sales for the three months ended March 31, 2025: $1,198 million source
• Gross profit for the three months ended March 31, 2026: $829 million source
• Gross profit for the three months ended March 31, 2025: $852 million source