LY

LyondellBasell Industries N.V. stock research

Mar 31, 2023

FY2023 Q1

LyondellBasell Industries N.V. (LYB) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and cost of revenue both declined from the year-ago quarter, with gross profit decreasing less than revenue, leading to a gross margin that was higher than that of the same quarter last year. In comparison with the preceding quarter, revenue remained steady while cost of revenue decreased, resulting in a higher gross profit and gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue and cost of revenue both declined from the year-ago quarter, with gross profit decreasing less than revenue, leading to a gross margin that was higher than that of the same quarter last year. In comparison with the preceding quarter, revenue remained steady while cost of revenue decreased, resulting in a higher gross profit and gross margin.

  • The strongest observable driver is the reduction in cost of revenue relative to revenue. Compared to the previous quarter, cost of revenue fell while revenue remained flat, directly boosting gross profit.
  • The gross margin improved compared to the prior quarter and was higher than the same quarter one year ago. The improvement versus the previous quarter was more pronounced.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

13.5%

Gross profit

$1.4B

Revenue

$10.2B

Cost of revenue

$8.9B

Quarter-over-quarter change

n/a

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.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$10.2B$1.4B$8.9B13.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

+0.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver is the reduction in cost of revenue relative to revenue. Compared to the previous quarter, cost of revenue fell while revenue remained flat, directly boosting gross profit.

The gross margin improved compared to the prior quarter and was higher than the same quarter one year ago. The improvement versus the previous quarter was more pronounced.

Monitor the trend of cost of revenue as a proportion of revenue, as it directly influences gross margin.