International Flavors & Fragrances (IFF) risk factors: FY2025 10-K

1. The following summary highlights some of the principal risks that could adversely affect our business, financial condition or results of operations. This summary is not complete and the risks summarized below are not the only risks we face. These risks are discussed more fully further below in this section entitled “Risk Factors” in Item 1A. of this report. These risks include, but are not limited to, the following:

Read these in Item 1A · See the changes

1. Consumer demand and preferences, as well as regulatory trends may impact demand for our products, which may have a negative effect on our operating results and future growth.reworded
2. Our business is highly competitive, and if we are unable to compete effectively, our sales and results of operations will suffer.
3. If we are unable to successfully execute our strategic transformation, or enter into or close collaborations, joint ventures, partnerships, acquisitions, or divestitures, it may have a material adverse effect on our business, results of operations and financial condition.reworded
4. Our performance may be adversely impacted if we are not successful in managing our inventory and/or working capital balances.
5. Our results of operations may be negatively impacted by legal claims, disputes, investigations and litigation, including the ongoing antitrust and competition investigations and related class action lawsuits.reworded
6. Trade wars, tariffs, sanctions, geopolitical developments, supply chain disruptions, environmental events, natural disasters, public health or human rights crises, and other events may adversely affect our sourcing of raw materials, and our development, manufacturing, distribution or sale of our products.rewordedTariffs
7. A significant data breach or other disruption to our information technology systems could disrupt our operations, result in the loss of confidential information or personal data, and adversely impact our reputation, productivity, business or results of operations.Cybersecurity
8. We are exposed to AI-related risks and opportunities that if we fail to properly manage, could result in material liabilities, or otherwise materially adversely affect our business, results of operations, and financial condition.newAI
9. The impact of currency fluctuation or devaluation in the international markets in which we operate may negatively affect our results of operations.
10. International economic, political, legal, compliance and business factors could negatively affect our financial statements, operations and growth.
11. Our inability to recruit, retain or transition employees could adversely affect our ability to compete and achieve our strategic goals.new
12. Any impairment of our tangible or intangible long-lived assets, including goodwill, may adversely impact our profitability.
13. We are subject to customer, consumer, shareholder and regulatory focus on sustainability, which may result in additional costs in order to meet new requirements, including adversely affecting our stock price, results of operations and access to capital.reworded
14. Our ability to declare and pay dividends is subject to certain considerations.
15. We have a substantial amount of indebtedness that could materially adversely affect, among other things, our financial condition, our ability to return capital to our shareholders, needed investments into our business and our credit ratings.
16. Our funding obligations for our pension and postretirement plans could adversely affect our earnings and cash flows.

Read these in Item 1A · See the changes

1. If we are unable to comply with regulatory requirements and industry standards, including those regarding product safety, quality, efficacy and environmental impact, we could incur significant costs and suffer reputational harm which could adversely affect results of operations.
2. Failure to comply with environmental protection laws may cause us to close, relocate or operate one or more of our plants at reduced production levels, and expose us to civil or criminal liability, which could adversely affect our operating results and future growth.
3. We could be adversely affected by violations, by us or our counterparties, of U.S. or foreign anti-bribery, international trade, anti-corruption, antitrust or competition laws and regulations, applicable sanctions or employment and human rights or employment regulations.new
4. Our ability to compete effectively depends on our ability to protect our intellectual property rights.
5. Changes in our tax rates, the adoption of new U.S. or international tax legislation, or changes in existing tax laws could expose us to additional tax liabilities that may affect our future results.
6. The N&B Transaction could result in significant tax liability, and we may be obligated to indemnify DuPont for any such tax liability imposed on DuPont.
7. If we fail to comply with data protection laws in the U.S. and abroad, we may be subject to fines, penalties and other costs.

Read these in Item 1A · See the changes

Headings in the FY2024 10-K with no match this year.

1. We routinely encounter and address risks in conducting our business. Some of these risks may cause our future results to be different - sometimes materially different - than we presently anticipate. Below are material risks we have identified that could adversely affect our business. How we react to material future developments, as well as how our competitors and customers react to those developments, could also affect our future results.
2. Inflationary trends and pricing uncertainty, including in the price of our input costs, such as raw materials, transportation and energy, could adversely affect our business and financial results in the short term and result in uncertainties in the long term.
3. A significant portion of our sales is generated from a limited number of large multi-national customers, which are currently under competitive pressures that may affect the demand for our products and profitability.
4. We may not successfully develop and introduce new products that meet our customers’ needs, which may adversely affect our results of operations.
5. We are subject to risks associated with the potential use of AI in our own operations and by third-party partners that we may engage with.
6. We have made investments in and continue to expand our business into emerging markets, which exposes us to certain risks.
7. If we fail to successfully enter into or close collaborations, joint ventures, partnerships, acquisitions, or divestitures, or successfully manage such transactions, it could adversely affect our business and growth opportunities.
8. Our success depends on attracting and retaining talented people within our business and our management team. Changes to management, including turnover of our top executives, and significant shortfalls in recruitment, retention or transition of employees or our management team could adversely affect our ability to compete and achieve our strategic goals.
9. If we are unable to successfully market to our expanded and diverse customer base, our operating results and future growth may be adversely affected.
10. Defects, quality issues (including product recalls), inadequate disclosure or misuse with respect to the products and capabilities could adversely affect our business, reputation and results of operations.
11. We could be adversely affected by violations, by us or our counterparties, of U.S. or foreign anti-bribery and anti-corruption laws and regulations, applicable sanctions or competition laws and regulations in the jurisdictions in which we operate or ethical business practices and related laws and regulations.