AM

Amcor plc stock research

Sep 30, 2023

FY2024 Q1

Amcor (AMCR) Gross Margin — Quarter Ended Sep 30, 2023

Revenue and gross profit both decreased compared to the immediately preceding quarter and the same quarter one year earlier, while cost of revenue also declined. Gross margin weakened from the prior quarter but improved relative to the same quarter last year.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2024 Q1

Revenue and gross profit both decreased compared to the immediately preceding quarter and the same quarter one year earlier, while cost of revenue also declined. Gross margin weakened from the prior quarter but improved relative to the same quarter last year.

  • The gross margin improved compared to the same quarter one year earlier, driven by a proportionally larger decline in cost of revenue relative to revenue. This was the strongest observable driver of margin change.
  • Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

18.7%

Gross profit

$645.0M

Revenue

$3.4B

Cost of revenue

$2.8B

Quarter-over-quarter change

-0.9 pts

Year-over-year change

+0.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$3.7B$673.0M$3.0B18.4%
Jun 30, 2023$3.7B$722.0M$3.0B19.7%
Sep 30, 2023$3.4B$645.0M$2.8B18.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

-0.9 pts

Year-over-year change

Sep 30, 2022

+0.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved compared to the same quarter one year earlier, driven by a proportionally larger decline in cost of revenue relative to revenue. This was the strongest observable driver of margin change.

Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin improved.

Monitor whether the proportionally lower cost of revenue relative to revenue can be sustained in future quarters.