International Flavors & Fragrances Inc. stock research
FY2025 Q1
International Flavors & Fragrances (IFF) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was lower than the same quarter a year earlier but unchanged from the preceding quarter. Gross margin improved compared with both prior periods, as gross profit remained stable while cost of revenue declined.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was lower than the same quarter a year earlier but unchanged from the preceding quarter. Gross margin improved compared with both prior periods, as gross profit remained stable while cost of revenue declined.
- The improved gross margin was primarily driven by a lower cost of revenue relative to revenue, which enabled gross profit to hold steady despite lower revenue compared with the prior year.
- Gross margin was higher than the preceding quarter and higher than the same quarter a year earlier. The current quarter's margin widened compared with both periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.4%
Gross profit
$1.0B
Revenue
$2.8B
Cost of revenue
$1.8B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+1.1 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, 2024 | $2.9B | $1.0B | $1.9B | 35.3% |
| Jun 30, 2024 | $2.9B | $1.1B | $1.8B | 37.0% |
| Sep 30, 2024 | $2.9B | $1.1B | $1.9B | 36.0% |
| Mar 31, 2025 | $2.8B | $1.0B | $1.8B | 36.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.4 pts
Year-over-year change
Mar 31, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improved gross margin was primarily driven by a lower cost of revenue relative to revenue, which enabled gross profit to hold steady despite lower revenue compared with the prior year.
Gross margin was higher than the preceding quarter and higher than the same quarter a year earlier. The current quarter's margin widened compared with both periods.
Monitor whether revenue can return to prior-year levels, as the current quarter's revenue was lower year over year despite stable gross margin.