International Flavors & Fragrances Inc. stock research
FY2023 Q1
International Flavors & Fragrances (IFF) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased from the immediately preceding quarter, with gross profit rising faster than revenue, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were lower, and the decline in gross profit was more pronounced, leading to a weakened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased from the immediately preceding quarter, with gross profit rising faster than revenue, resulting in an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were lower, and the decline in gross profit was more pronounced, leading to a weakened gross margin.
- The strongest observable margin driver is the relative change in gross profit compared to revenue. Sequentially, gross profit grew faster than revenue, expanding the margin; year-over-year, gross profit contracted more than revenue, compressing the margin.
- Gross margin improved from the prior quarter but weakened from the same quarter last year. Revenue was higher than the previous quarter and lower than the year-ago quarter, while gross profit followed the same pattern.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.8%
Gross profit
$964.0M
Revenue
$3.0B
Cost of revenue
$2.1B
Quarter-over-quarter change
n/a
Year-over-year change
-3.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $3.0B | $964.0M | $2.1B | 31.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative change in gross profit compared to revenue. Sequentially, gross profit grew faster than revenue, expanding the margin; year-over-year, gross profit contracted more than revenue, compressing the margin.
Gross margin improved from the prior quarter but weakened from the same quarter last year. Revenue was higher than the previous quarter and lower than the year-ago quarter, while gross profit followed the same pattern.
Monitor the trend in total inventories, which decreased from the prior quarter end as shown in the filing, as inventory levels can influence future margin performance.