Colgate-Palmolive Company stock research
FY2024 Q3
Colgate-Palmolive (CL) Gross Margin — Quarter Ended Sep 30, 2024
Revenue decreased from the previous quarter but increased from the same quarter a year earlier. Gross profit was stable sequentially and higher year over year, while cost of revenue remained unchanged, leading to an improved gross margin on both comparisons.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue decreased from the previous quarter but increased from the same quarter a year earlier. Gross profit was stable sequentially and higher year over year, while cost of revenue remained unchanged, leading to an improved gross margin on both comparisons.
- The strongest observable margin driver is the improvement in gross margin despite a lower sequential revenue, with gross profit holding steady. This indicates that a higher proportion of revenue is being retained as gross profit.
- Compared to the immediately preceding quarter, revenue was lower while gross profit was unchanged, resulting in a higher gross margin. Versus the same quarter one year earlier, revenue and gross profit were both higher, with gross margin also improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.1%
Gross profit
$3.1B
Revenue
$5.0B
Cost of revenue
$2.0B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+2.5 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 | $5.0B | $3.0B | $2.0B | 59.6% |
| Mar 31, 2024 | $5.1B | $3.0B | $2.0B | 60.0% |
| Jun 30, 2024 | $5.1B | $3.1B | $2.0B | 60.6% |
| Sep 30, 2024 | $5.0B | $3.1B | $2.0B | 61.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.5 pts
Year-over-year change
Sep 30, 2023
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin despite a lower sequential revenue, with gross profit holding steady. This indicates that a higher proportion of revenue is being retained as gross profit.
Compared to the immediately preceding quarter, revenue was lower while gross profit was unchanged, resulting in a higher gross margin. Versus the same quarter one year earlier, revenue and gross profit were both higher, with gross margin also improving.
Monitor the company's ability to sustain margin expansion through operating leverage and efficiency, as highlighted in the management discussion.