IFF · 10-Q · 2026Q2 · Full report

Supply Chain Tariff Impact

INTERNATIONAL FLAVORS & FRAGRANCES INC · 2026-08-04 · Importance 52 · Surprise 42

IFF recognized tariff refunds as a benefit to gross profit and cost of sales in the second quarter and first six months of 2026. The refunds contributed to the $29 million year-over-year increase in second-quarter gross profit and the $115 million decrease in six-month cost of sales, although the filing does not quantify the refund amount separately. Management continues to identify tariffs and trade actions as factors that could affect future results.

Key facts

• The increase in cost of sales in Q2 2026 was primarily driven by volume increases offset in part by the impact of divestitures of approximately $69 million and the benefit of tariff refunds recognized during the quarter. source