LY

LyondellBasell Industries N.V. stock research

Sep 30, 2023

FY2023 Q3

LyondellBasell Industries N.V. (LYB) Gross Margin — Quarter Ended Sep 30, 2023

Revenue increased slightly from the prior quarter while cost of revenue rose more, causing gross margin to narrow a bit. Compared to the same quarter last year, revenue was lower but cost of revenue dropped substantially, resulting in a much improved gross margin.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue increased slightly from the prior quarter while cost of revenue rose more, causing gross margin to narrow a bit. Compared to the same quarter last year, revenue was lower but cost of revenue dropped substantially, resulting in a much improved gross margin.

  • The change in cost of revenue relative to the prior year is the most visible factor, as it declined notably while revenue also fell, leading to a higher gross margin.
  • Compared to the immediately preceding quarter, gross margin weakened slightly as cost growth outpaced revenue growth. Compared to the same quarter one year earlier, gross margin improved substantially as cost reduction exceeded revenue decline.

Gross margin snapshot

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

Gross margin

13.6%

Gross profit

$1.4B

Revenue

$10.6B

Cost of revenue

$9.2B

Quarter-over-quarter change

-0.3 pts

Year-over-year change

+4.1 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%
Jun 30, 2023$10.3B$1.4B$8.9B14.0%
Sep 30, 2023$10.6B$1.4B$9.2B13.6%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

-0.3 pts

Year-over-year change

Sep 30, 2022

+4.1 pts

What the margin says

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

The change in cost of revenue relative to the prior year is the most visible factor, as it declined notably while revenue also fell, leading to a higher gross margin.

Compared to the immediately preceding quarter, gross margin weakened slightly as cost growth outpaced revenue growth. Compared to the same quarter one year earlier, gross margin improved substantially as cost reduction exceeded revenue decline.

Monitor whether the sequential increase in cost of revenue continues in the upcoming quarters.