LY

LyondellBasell Industries N.V. stock research

Jun 30, 2024

FY2024 Q2

LyondellBasell Industries N.V. (LYB) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, resulting in an improved gross margin. Compared to the same quarter last year, revenue was lower but gross profit was similar, with a lower cost of revenue leading to a higher gross margin.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, resulting in an improved gross margin. Compared to the same quarter last year, revenue was lower but gross profit was similar, with a lower cost of revenue leading to a higher gross margin.

  • The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased from the prior quarter while cost of revenue was unchanged, directly lifting gross profit and margin.
  • Compared to the immediately preceding quarter, gross margin improved as revenue grew and cost of revenue held steady. Compared to the same quarter one year earlier, gross margin also improved, driven by a lower cost of revenue despite lower revenue.

Gross margin snapshot

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

Gross margin

16.5%

Gross profit

$1.4B

Revenue

$8.7B

Cost of revenue

$7.2B

Quarter-over-quarter change

+3.2 pts

Year-over-year change

+2.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
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%
Jun 30, 2024$8.7B$1.4B$7.2B16.5%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+3.2 pts

Year-over-year change

Jun 30, 2023

+2.6 pts

What the margin says

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

The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased from the prior quarter while cost of revenue was unchanged, directly lifting gross profit and margin.

Compared to the immediately preceding quarter, gross margin improved as revenue grew and cost of revenue held steady. Compared to the same quarter one year earlier, gross margin also improved, driven by a lower cost of revenue despite lower revenue.

Monitor whether cost of revenue remains stable in future quarters, as it was unchanged sequentially despite revenue growth.