Colgate-Palmolive Company stock research
FY2024 Q1
Colgate-Palmolive (CL) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable quarter over quarter and lower year over year. Gross margin improved sequentially and year over year, reflecting an overall strengthened profitability relationship.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable quarter over quarter and lower year over year. Gross margin improved sequentially and year over year, reflecting an overall strengthened profitability relationship.
- The improvement in gross margin was driven by gross profit growing faster than revenue, with cost of revenue remaining unchanged sequentially and declining year over year.
- Compared to the immediately preceding quarter, gross margin improved slightly as revenue rose while cost of revenue held steady. Versus the same quarter one year earlier, gross margin improved more notably as revenue and gross profit increased while cost of revenue decreased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.0%
Gross profit
$3.0B
Revenue
$5.1B
Cost of revenue
$2.0B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+3.1 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $4.8B | $2.8B | $2.0B | 57.8% |
| Sep 30, 2023 | $4.9B | $2.9B | $2.0B | 58.5% |
| Dec 31, 2023 | $5.0B | $3.0B | $2.0B | 59.6% |
| Mar 31, 2024 | $5.1B | $3.0B | $2.0B | 60.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.4 pts
Year-over-year change
Mar 31, 2023
+3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by gross profit growing faster than revenue, with cost of revenue remaining unchanged sequentially and declining year over year.
Compared to the immediately preceding quarter, gross margin improved slightly as revenue rose while cost of revenue held steady. Versus the same quarter one year earlier, gross margin improved more notably as revenue and gross profit increased while cost of revenue decreased.
Monitor the trajectory of cost of revenue, as it remained flat sequentially but declined year over year, and any shift could alter gross margin trends.