International Paper (IP) Gross Margin — Quarter Ended Dec 31, 2023

For the current quarter, revenue and gross profit were lower compared to both the prior quarter and the same quarter last year. However, the gross margin improved, reflecting a more favorable relationship between cost of revenue and revenue.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

The improvement in gross margin was driven by a reduction in cost of revenue that outpaced the decline in revenue.
Revenue and gross profit declined from the immediately preceding quarter and from the same quarter one year earlier. Gross margin strengthened relative to both periods.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

32.2%

Gross profit

$553.0M

Revenue

$1.7B

Cost of revenue

$1.2B

Quarter-over-quarter change

+4.7 pts

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	$5.0B	$1.4B	$3.6B	27.5%
Jun 30, 2023	$4.7B	$1.3B	$3.4B	28.2%
Sep 30, 2023	$4.6B	$1.3B	$3.3B	27.5%
Dec 31, 2023	$1.7B	$553.0M	$1.2B	32.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2023

+4.7 pts

Year-over-year change

Dec 31, 2022

+3.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The improvement in gross margin was driven by a reduction in cost of revenue that outpaced the decline in revenue.

Revenue and gross profit declined from the immediately preceding quarter and from the same quarter one year earlier. Gross margin strengthened relative to both periods.

Monitor the trend in cost of revenue relative to revenue in future periods.