Why did IP's net profit fluctuate so dramatically in 2023?

International Paper's net profit fluctuated significantly in 2023 due to a combination of factors: 1. **Economic Challenges**: The company faced various economic challenges, including global pandemics and economic downturns, which negatively impacted business operations and sales targets. 2. **Revenue Decline**: There was a decline in revenue during the quarter ended July 27th, with $4.68 billion generated in Q2 2023, falling short of the consensus estimate of $4.90 billion. This decline represented a decrease of 13.1% compared to the same period in the previous year. 3. **Cost Management**: International Paper has been efficient in cost management, which is reflected in its net margin of 5.14% and return on equity of 12.22% for the quarter. This indicates that despite revenue decline, effective management strategies helped in maintaining profitability. In conclusion, International Paper's net profit fluctuation in 2023 was primarily due to economic challenges and revenue decline, despite the company's efficient cost management.