MD

Mondelez International, Inc. stock research

Dec 31, 2023

FY2023 Q4

Mondelez International (MDLZ) Gross Margin — Quarter Ended Dec 31, 2023

Revenue grew compared to both the prior quarter and the same quarter last year. Gross profit remained level with the prior quarter but increased year-over-year, while cost of revenue rose relative to both periods, resulting in a gross margin that weakened sequentially but strengthened annually.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue grew compared to both the prior quarter and the same quarter last year. Gross profit remained level with the prior quarter but increased year-over-year, while cost of revenue rose relative to both periods, resulting in a gross margin that weakened sequentially but strengthened annually.

  • The relationship between cost of revenue and revenue was the primary observable factor: cost increased proportionally with revenue from the prior quarter, leaving gross profit unchanged, while year-over-year gross profit grew faster than revenue.
  • Compared to the prior quarter, gross margin weakened as revenue increased while gross profit held steady. Compared to the same quarter last year, gross margin improved as both revenue and gross profit rose, with gross profit growing at a faster pace.

Gross margin snapshot

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

Gross margin

37.3%

Gross profit

$3.5B

Revenue

$9.3B

Cost of revenue

$5.8B

Quarter-over-quarter change

-1.4 pts

Year-over-year change

+1.9 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$9.2B$3.4B$5.7B37.6%
Jun 30, 2023$8.5B$3.4B$5.2B39.4%
Sep 30, 2023$9.0B$3.5B$5.5B38.7%
Dec 31, 2023$9.3B$3.5B$5.8B37.3%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-1.4 pts

Year-over-year change

Dec 31, 2022

+1.9 pts

What the margin says

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

The relationship between cost of revenue and revenue was the primary observable factor: cost increased proportionally with revenue from the prior quarter, leaving gross profit unchanged, while year-over-year gross profit grew faster than revenue.

Compared to the prior quarter, gross margin weakened as revenue increased while gross profit held steady. Compared to the same quarter last year, gross margin improved as both revenue and gross profit rose, with gross profit growing at a faster pace.

Monitor the trend in cost of revenue relative to revenue, as it directly influences gross margin stability.