International Flavors & Fragrances Inc. stock research
FY2024 Q2
International Flavors & Fragrances (IFF) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was steady compared with both the prior quarter and the same quarter last year, while cost of revenue declined, causing gross profit and gross margin to improve. Gross margin strengthened from the preceding quarter and notably improved from the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was steady compared with both the prior quarter and the same quarter last year, while cost of revenue declined, causing gross profit and gross margin to improve. Gross margin strengthened from the preceding quarter and notably improved from the year-ago period.
- The most observable driver of the gross margin improvement is the reduction in cost of revenue relative to revenue, as revenue remained flat while cost of revenue decreased from both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. The sequential and year-over-year comparisons both show improved profitability at the gross level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.0%
Gross profit
$1.1B
Revenue
$2.9B
Cost of revenue
$1.8B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+5.1 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $2.9B | $1.1B | $1.8B | 37.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.6 pts
Year-over-year change
Jun 30, 2023
+5.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin improvement is the reduction in cost of revenue relative to revenue, as revenue remained flat while cost of revenue decreased from both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, gross margin was higher; compared to the same quarter one year earlier, gross margin was also higher. The sequential and year-over-year comparisons both show improved profitability at the gross level.
Monitor whether the lower cost of revenue level can be sustained in subsequent quarters.