Mondelez International, Inc. stock research
FY2024 Q3
Mondelez International (MDLZ) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased compared to the prior quarter, but gross profit rose less proportionally as cost of revenue grew faster, resulting in a lower gross margin. Versus the same quarter last year, revenue was slightly higher while gross profit declined and cost of revenue increased, leading to a weakened gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased compared to the prior quarter, but gross profit rose less proportionally as cost of revenue grew faster, resulting in a lower gross margin. Versus the same quarter last year, revenue was slightly higher while gross profit declined and cost of revenue increased, leading to a weakened gross margin.
- The primary observable driver of the gross margin decline was the faster growth in cost of revenue relative to revenue, which compressed the spread between revenue and cost of revenue.
- Sequentially, revenue and gross profit both increased, but cost of revenue rose at a higher rate, causing gross margin to be lower. Year over year, revenue was slightly higher while gross profit was lower and cost of revenue was higher, resulting in a weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.6%
Gross profit
$3.0B
Revenue
$9.2B
Cost of revenue
$6.2B
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-6.1 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $9.3B | $3.5B | $5.8B | 37.3% |
| Mar 31, 2024 | $9.3B | $4.8B | $4.5B | 51.1% |
| Jun 30, 2024 | $8.3B | $2.8B | $5.5B | 33.5% |
| Sep 30, 2024 | $9.2B | $3.0B | $6.2B | 32.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.9 pts
Year-over-year change
Sep 30, 2023
-6.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin decline was the faster growth in cost of revenue relative to revenue, which compressed the spread between revenue and cost of revenue.
Sequentially, revenue and gross profit both increased, but cost of revenue rose at a higher rate, causing gross margin to be lower. Year over year, revenue was slightly higher while gross profit was lower and cost of revenue was higher, resulting in a weakened gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as this relationship directly influences gross margin.