International Flavors & Fragrances Inc (IFF)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -2,567,000 | -1,871,000 | 270,000 | 363,228 | 455,873 |
| Revenue | US$ in thousands | 11,002,000 | 12,118,000 | 11,368,000 | 4,948,650 | 4,999,500 |
| Net profit margin | -23.33% | -15.44% | 2.38% | 7.34% | 9.12% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-2,567,000K ÷ $11,002,000K
= -23.33%
The net profit margin of International Flavors & Fragrances Inc. has shown a downward trend over the past five years. In 2019, the net profit margin was at its highest point at 8.81%, indicating that for every dollar of revenue generated, the company retained 8.81 cents as profit. However, the margin has been declining since then, with significant decreases in 2020 and 2021, falling to 7.18% and 2.30% respectively.
Notably, in 2022 and 2023, the company experienced negative net profit margins of -15.02% and -22.33% respectively. A negative net profit margin implies that the company's expenses exceeded its revenue, resulting in a loss instead of a profit.
This declining trend in net profit margin raises concerns about the company's profitability and operational efficiency. It suggests that International Flavors & Fragrances Inc. may be facing challenges in managing costs, generating sustainable revenue, or both. Further analysis of the company's financial performance and strategic initiatives is necessary to understand the factors contributing to this negative trend and to identify potential areas for improvement.
Peer comparison
Dec 31, 2023