LyondellBasell Industries N.V. stock research
FY2023 Q2
LyondellBasell Industries N.V. (LYB) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and cost of revenue both decreased from the prior quarter, while gross profit remained stable, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and cost of revenue both decreased from the prior quarter, while gross profit remained stable, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened.
- The gross margin improved sequentially as gross profit held steady despite a slight decline in revenue, indicating that cost of revenue decreased proportionally more than revenue. The year-over-year weakening in gross margin was driven by a larger relative decline in gross profit compared to the drop in revenue.
- Compared to the immediately preceding quarter, revenue was slightly higher, gross profit was unchanged, cost of revenue was slightly higher, and gross margin improved modestly. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all substantially lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14.0%
Gross profit
$1.4B
Revenue
$10.3B
Cost of revenue
$8.9B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
-1.8 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 | $10.2B | $1.4B | $8.9B | 13.5% |
| Jun 30, 2023 | $10.3B | $1.4B | $8.9B | 14.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.5 pts
Year-over-year change
Jun 30, 2022
-1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially as gross profit held steady despite a slight decline in revenue, indicating that cost of revenue decreased proportionally more than revenue. The year-over-year weakening in gross margin was driven by a larger relative decline in gross profit compared to the drop in revenue.
Compared to the immediately preceding quarter, revenue was slightly higher, gross profit was unchanged, cost of revenue was slightly higher, and gross margin improved modestly. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all substantially lower, and gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as its proportional movement was the key factor in the gross margin change.