International Flavors & Fragrances forecasts full-year earnings in line with expectations

Feb 11 (Reuters) - International Flavors & Fragrances IFF.N forecast annual revenue and profit that largely met Wall Street expectations, as the company battles with a soft retail demand.

Softer trends in beauty and some food categories have led retailers to keep leaner inventories, prompting IFF to shed non-core businesses and sharpen its focus on flavors, fragrances and health ingredients.

Packaged food companies have said they expect a softening of demand amid pressured consumer spending, shifting preference for healthier options amid the "Make America Healthy Again" movement, and increased adoption of GLP-1 or weight-loss drugs.

"While macroeconomic uncertainty persists, we are encouraged by the strength of our pipeline and the benefits of our reinvestment actions," CEO Erik Fyrwald said.

The company, which provides ingredients and flavor solutions for food and beverage products, said it expects full-year 2026 sales to be in the range of $10.5 billion to $10.8 billion, the midpoint of which is in line with analysts' estimates of $10.61 billion according to data compiled by LSEG.

It had reported sales of $10.89 billion in 2025.

IFF also sees annual adjusted operating core profit to be in the range of $2.05 billion to $2.15 billion, the midpoint of which matches analysts' estimates. This compares to $2.09 billion in 2025

Quarterly net sales fell 7% to $2.59 billion, compared with analysts' average estimate of $2.51 billion.

The company posted adjusted earnings of 80 cents per share, below analysts' estimates of 83 cents.