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