International Flavors & Fragrances Inc. stock research
FY2024 Q1
International Flavors & Fragrances (IFF) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased compared to the same quarter last year but increased from the prior quarter. Gross profit rose both sequentially and year-over-year, while cost of revenue declined year-over-year, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue decreased compared to the same quarter last year but increased from the prior quarter. Gross profit rose both sequentially and year-over-year, while cost of revenue declined year-over-year, leading to an improved gross margin.
- The strongest observable margin driver is the reduction in cost of revenue relative to revenue, as gross profit increased while revenue declined year-over-year, resulting in a higher gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter last year, revenue was lower but gross profit was higher, and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.3%
Gross profit
$1.0B
Revenue
$2.9B
Cost of revenue
$1.9B
Quarter-over-quarter change
+3.5 pts
Year-over-year change
+3.5 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $2.9B | $933.0M | $2.0B | 31.9% |
| Sep 30, 2023 | $2.8B | $924.0M | $1.9B | 32.8% |
| Dec 31, 2023 | $2.7B | $860.0M | $1.8B | 31.8% |
| Mar 31, 2024 | $2.9B | $1.0B | $1.9B | 35.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+3.5 pts
Year-over-year change
Mar 31, 2023
+3.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to revenue, as gross profit increased while revenue declined year-over-year, resulting in a higher gross margin.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter last year, revenue was lower but gross profit was higher, and gross margin strengthened.
Monitor the trend in cost of revenue relative to revenue, as its decline supported margin improvement this quarter.