Edwyn
Over the five-year period, INTERNATIONAL FLAVORS & FRAGRANCES INC. experienced notable fluctuations across key income statement metrics. Revenue nearly more than doubled from approximately USD 5.08 billion in 2020 to USD 11.66 billion in 2021, reflecting strong top-line growth likely driven by market expansion or increased product demand. However, after peaking in 2021, revenue growth moderated with 2022 and 2023 levels remaining relatively close, suggesting stabilization in sales. Gross profit followed a similar trend, growing from USD 2.09 billion in 2020 to about USD 4.15 billion in 2022 before a slight dip in 2023, and then rebounding to USD 4.12 billion in 2024. Despite these modest fluctuations in revenue and gross profit, the operating income and net income figures depicted higher volatility. Operating income and net income swung dramatically over the period with significant year-over-year declines exceeding 20%. While 2020 and 2021 reported positive operating income (USD 566 million and USD 585 million, respectively) and net income (USD 367 million and USD 279 million), 2022 and 2023 recorded substantial losses (operating income of -USD 1.33 billion and -USD 2.11 billion; net income of -USD 1.86 billion and -USD 2.56 billion). The sharp downturns suggest that rising operating costs, pricing pressures, or other margin impacts in a highly competitive flavor and fragrance industry may have outweighed revenue gains during these years. The recovery in 2024—with a return to positive operating income (USD 766 million) and net income (USD 247 million)—indicates a potential turnaround, underlined by improved operational efficiency. Overall, while the rebound offers cautious optimism, sustainable profitability will depend on the company’s ability to manage costs amid a competitive and cyclical industry environment.
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