Amcor plc stock research
FY2025 Q2
Amcor (AMCR) Gross Margin — Quarter Ended Dec 31, 2024
In the current quarter, gross profit is revenue minus cost of revenue, and gross margin is the ratio of gross profit to revenue. Revenue and cost of revenue both decreased from the preceding quarter, but the decline in cost of revenue was smaller, resulting in a lower gross profit and a weakened gross margin. Compared to the same quarter a year earlier, revenue was slightly lower while cost of revenue also decreased, leading to a marginally higher gross profit and an improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q2
In the current quarter, gross profit is revenue minus cost of revenue, and gross margin is the ratio of gross profit to revenue. Revenue and cost of revenue both decreased from the preceding quarter, but the decline in cost of revenue was smaller, resulting in a lower gross profit and a weakened gross margin. Compared to the same quarter a year earlier, revenue was slightly lower while cost of revenue also decreased, leading to a marginally higher gross profit and an improved gross margin.
- The strongest observable margin driver is the relative change in cost of revenue compared to revenue. Sequentially, cost of revenue declined at a slower rate than revenue, compressing margin; year over year, cost of revenue declined more than revenue, expanding margin.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved. Revenue was lower than both prior periods, while gross profit was lower than the preceding quarter but higher than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.3%
Gross profit
$626.0M
Revenue
$3.2B
Cost of revenue
$2.6B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $3.3B | $621.0M | $2.6B | 19.1% |
| Mar 31, 2024 | $3.4B | $692.0M | $2.7B | 20.3% |
| Sep 30, 2024 | $3.4B | $659.0M | $2.7B | 19.7% |
| Dec 31, 2024 | $3.2B | $626.0M | $2.6B | 19.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.3 pts
Year-over-year change
Dec 31, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relative change in cost of revenue compared to revenue. Sequentially, cost of revenue declined at a slower rate than revenue, compressing margin; year over year, cost of revenue declined more than revenue, expanding margin.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin improved. Revenue was lower than both prior periods, while gross profit was lower than the preceding quarter but higher than the year-ago quarter.
Monitor the movement of cost of revenue relative to revenue, as the margin is sensitive to the pace of these changes.