International Flavors & Fragrances Inc (IFF)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-2,522,000	114,000	-1,980,000	-1,902,000	-1,632,000	-1,514,000	770,000	684,000	345,000	313,228	170,228	231,228	437,228	456,510	506,693	570,682	552,873	519,663	466,182	421,111
Revenue (ttm)	US$ in thousands	11,022,000	11,168,000	11,438,000	11,857,000	12,104,000	12,324,000	12,342,000	12,122,000	11,368,000	9,645,100	7,879,920	6,034,230	4,948,650	4,856,730	4,891,250	5,016,510	4,999,490	8,882,710	8,522,918	8,151,364
Pretax margin		-22.88%	1.02%	-17.31%	-16.04%	-13.48%	-12.28%	6.24%	5.64%	3.03%	3.25%	2.16%	3.83%	8.84%	9.40%	10.36%	11.38%	11.06%	5.85%	5.47%	5.17%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-2,522,000K ÷ $11,022,000K
= -22.88%

International Flavors & Fragrances Inc.'s pretax margin has displayed significant variability over the past eight quarters. In Q4 2023, the company recorded a negative pretax margin of -21.94%, indicating that its operating expenses and interest payments exceeded its revenues, resulting in a loss before taxes. This is a sharp decline compared to the previous quarter's pretax margin of 1.02%, where the company barely managed to achieve profitability.

Looking at the trend over the past year, the company's pretax margin has generally been negative, with only two quarters showing positive results (Q3 2022 and Q2 2022). The most recent quarters (Q4 2023 and Q3 2023) have seen particularly poor performance in terms of pretax margin, suggesting challenges in managing costs and generating sufficient revenues.

Overall, International Flavors & Fragrances Inc. seems to be struggling with profitability as indicated by its pretax margin fluctuations, highlighting the need for the company to focus on improving operational efficiency, controlling expenses, and potentially exploring revenue-generating opportunities to enhance its financial performance.