International Flavors & Fragrances Inc. stock research
FY2023 Q3
International Flavors & Fragrances (IFF) Gross Margin — Quarter Ended Sep 30, 2023
Revenue decreased from both the prior quarter and the same quarter a year ago. Gross profit also declined, but cost of revenue decreased at a faster pace, resulting in an improved gross margin compared to the prior quarter and a stable gross margin compared to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue decreased from both the prior quarter and the same quarter a year ago. Gross profit also declined, but cost of revenue decreased at a faster pace, resulting in an improved gross margin compared to the prior quarter and a stable gross margin compared to the same quarter last year.
- The strongest observable driver is the proportionally larger decline in cost of revenue relative to revenue, which supported the gross margin improvement.
- Quarter-over-quarter gross margin improved, while year-over-year gross margin was relatively stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.8%
Gross profit
$924.0M
Revenue
$2.8B
Cost of revenue
$1.9B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+0.1 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% |
| Jun 30, 2023 | $2.9B | $933.0M | $2.0B | 31.9% |
| Sep 30, 2023 | $2.8B | $924.0M | $1.9B | 32.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.9 pts
Year-over-year change
Sep 30, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the proportionally larger decline in cost of revenue relative to revenue, which supported the gross margin improvement.
Quarter-over-quarter gross margin improved, while year-over-year gross margin was relatively stable.
Monitor revenue trajectory as it declined in both comparisons, as further contraction could pressure margins.