AM

Amcor plc stock research

Dec 31, 2023

FY2024 Q2

Amcor (AMCR) Gross Margin — Quarter Ended Dec 31, 2023

Revenue and gross profit both decreased compared to the immediately preceding quarter, but cost of revenue declined at a proportionally higher rate, resulting in a modest improvement in gross margin. Versus the same quarter one year earlier, revenue and gross profit were lower, yet gross margin improved as cost of revenue fell more steeply.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2024 Q2

Revenue and gross profit both decreased compared to the immediately preceding quarter, but cost of revenue declined at a proportionally higher rate, resulting in a modest improvement in gross margin. Versus the same quarter one year earlier, revenue and gross profit were lower, yet gross margin improved as cost of revenue fell more steeply.

  • The primary observable driver of the gross margin improvement is a reduction in cost of revenue relative to revenue, as cost fell faster than revenue in both sequential and year-over-year comparisons.
  • Compared with the prior quarter, revenue and gross profit were lower, but gross margin improved slightly. Relative to the same quarter last year, revenue and gross profit were also lower, while gross margin was higher.

Gross margin snapshot

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

Gross margin

19.1%

Gross profit

$621.0M

Revenue

$3.3B

Cost of revenue

$2.6B

Quarter-over-quarter change

+0.4 pts

Year-over-year change

+0.9 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%
Dec 31, 2023$3.3B$621.0M$2.6B19.1%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

+0.4 pts

Year-over-year change

Dec 31, 2022

+0.9 pts

What the margin says

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

The primary observable driver of the gross margin improvement is a reduction in cost of revenue relative to revenue, as cost fell faster than revenue in both sequential and year-over-year comparisons.

Compared with the prior quarter, revenue and gross profit were lower, but gross margin improved slightly. Relative to the same quarter last year, revenue and gross profit were also lower, while gross margin was higher.

Monitor the trajectory of revenue and cost of revenue in coming quarters to assess whether the relative cost reduction can be sustained.

AMCR Gross Margin — Quarter Ended Dec 31, 2023