Colgate-Palmolive Company stock research
FY2023 Q3
Colgate-Palmolive (CL) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased compared with the immediately preceding quarter and the same quarter one year earlier, while cost of revenue was higher than the prior quarter but lower than the year-ago quarter. Gross margin improved sequentially and from a year earlier, reflecting that gross profit grew faster than cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both increased compared with the immediately preceding quarter and the same quarter one year earlier, while cost of revenue was higher than the prior quarter but lower than the year-ago quarter. Gross margin improved sequentially and from a year earlier, reflecting that gross profit grew faster than cost of revenue relative to revenue.
- Gross margin improved both sequentially and year over year, driven by a larger increase in gross profit relative to revenue compared with cost of revenue. The strongest observable driver is the improvement in gross margin itself, as it reflects the relationship between higher revenue and controlled cost of revenue.
- Compared with the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.5%
Gross profit
$2.9B
Revenue
$4.9B
Cost of revenue
$2.0B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+1.3 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $4.8B | $2.7B | $2.1B | 56.9% |
| Jun 30, 2023 | $4.8B | $2.8B | $2.0B | 57.8% |
| Sep 30, 2023 | $4.9B | $2.9B | $2.0B | 58.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.7 pts
Year-over-year change
Sep 30, 2022
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved both sequentially and year over year, driven by a larger increase in gross profit relative to revenue compared with cost of revenue. The strongest observable driver is the improvement in gross margin itself, as it reflects the relationship between higher revenue and controlled cost of revenue.
Compared with the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared with the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as it showed a sequential increase despite being lower year over year, which could affect future gross margin dynamics.