International Flavors & Fragrances Inc (IFF)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -2,110,000 | -1,326,000 | 585,000 | 566,000 | 665,000 |
| Revenue | US$ in thousands | 11,002,000 | 12,118,000 | 11,368,000 | 4,948,650 | 4,999,500 |
| Operating profit margin | -19.18% | -10.94% | 5.15% | 11.44% | 13.30% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-2,110,000K ÷ $11,002,000K
= -19.18%
The operating profit margin of International Flavors & Fragrances Inc. has exhibited fluctuations over the past five years. In 2019, the company had a relatively high operating profit margin of 13.57%, indicating that for every dollar of sales, the company generated 13.57 cents of operating profit.
However, in subsequent years, the operating profit margin declined significantly. In 2020, the margin dropped to 11.56%, followed by a further decrease to 5.36% in 2021. This downward trend suggests a potential decline in operational efficiency or cost management during those years.
In 2022, there was a slight improvement in the operating profit margin to 8.46%, indicating some recovery in profitability. Despite this uptick, the company's operating profit margin remained below the levels seen in 2019.
Finally, as of December 31, 2023, the operating profit margin further decreased to 5.04%, which raises concerns about the company's ability to maintain profitability in a competitive market environment.
Overall, the analysis highlights the volatility in International Flavors & Fragrances Inc.'s operating profit margin over the past five years, suggesting the need for a closer examination of the company's cost structure and operational efficiency to sustain and improve profitability.
Peer comparison
Dec 31, 2023