Colgate-Palmolive Company stock research
FY2024 Q4
Colgate-Palmolive (CL) Gross Margin — Quarter Ended Dec 31, 2024
In the current quarter, revenue was slightly lower than the preceding quarter while cost of revenue remained unchanged, resulting in a lower gross profit and gross margin. Compared to the same quarter a year earlier, revenue was broadly similar, cost of revenue was similar, and gross profit was similar, yet gross margin was higher.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
In the current quarter, revenue was slightly lower than the preceding quarter while cost of revenue remained unchanged, resulting in a lower gross profit and gross margin. Compared to the same quarter a year earlier, revenue was broadly similar, cost of revenue was similar, and gross profit was similar, yet gross margin was higher.
- The most notable margin driver is the unchanged cost of revenue across all three periods, which means that any variation in revenue directly affects the gross margin. This suggests a stable cost structure.
- Sequentially, gross margin weakened due to a decline in revenue with cost of revenue flat. Year-over-year, gross margin strengthened as revenue was slightly lower but cost of revenue remained consistent, leading to a higher margin percentage.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.3%
Gross profit
$3.0B
Revenue
$4.9B
Cost of revenue
$2.0B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+0.7 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, 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% |
| Dec 31, 2024 | $4.9B | $3.0B | $2.0B | 60.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.8 pts
Year-over-year change
Dec 31, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver is the unchanged cost of revenue across all three periods, which means that any variation in revenue directly affects the gross margin. This suggests a stable cost structure.
Sequentially, gross margin weakened due to a decline in revenue with cost of revenue flat. Year-over-year, gross margin strengthened as revenue was slightly lower but cost of revenue remained consistent, leading to a higher margin percentage.
Monitor whether cost of revenue remains stable in future quarters, as it is the key factor in margin changes.