LY

LyondellBasell Industries N.V. stock research

Mar 31, 2024

FY2024 Q1

LyondellBasell Industries N.V. (LYB) Gross Margin — Quarter Ended Mar 31, 2024

Revenue rose from the prior quarter, but cost of revenue increased more sharply, causing gross profit to grow less proportionally and gross margin to decline. Compared to the same quarter last year, revenue and gross profit were lower, while gross margin was slightly weaker.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue rose from the prior quarter, but cost of revenue increased more sharply, causing gross profit to grow less proportionally and gross margin to decline. Compared to the same quarter last year, revenue and gross profit were lower, while gross margin was slightly weaker.

  • The primary observable driver of the margin change was the increase in cost of revenue as a share of revenue, which compressed gross margin from the prior quarter.
  • Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were lower, while gross margin was broadly stable.

Gross margin snapshot

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

Gross margin

13.3%

Gross profit

$1.1B

Revenue

$8.3B

Cost of revenue

$7.2B

Quarter-over-quarter change

-16.0 pts

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
Jun 30, 2023$10.3B$1.4B$8.9B14.0%
Sep 30, 2023$10.6B$1.4B$9.2B13.6%
Dec 31, 2023$2.2B$632.0M$1.5B29.3%
Mar 31, 2024$8.3B$1.1B$7.2B13.3%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

-16.0 pts

Year-over-year change

Mar 31, 2023

-0.2 pts

What the margin says

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

The primary observable driver of the margin change was the increase in cost of revenue as a share of revenue, which compressed gross margin from the prior quarter.

Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were lower, while gross margin was broadly stable.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.