McCormick & Company, Incorporated stock research
FY2024 Q3
McCormick & (MKC) Gross Margin — Quarter Ended Aug 31, 2024
Revenue was stable compared to the prior quarter and the same quarter last year, while cost of revenue was lower relative to the prior year and flat sequentially, resulting in improved gross profit and gross margin.
Gross margin takeaway
Quarter ended Aug 31, 2024 · FY2024 Q3
Revenue was stable compared to the prior quarter and the same quarter last year, while cost of revenue was lower relative to the prior year and flat sequentially, resulting in improved gross profit and gross margin.
- Gross margin improved sequentially and year-over-year, primarily driven by lower cost of revenue relative to the year-ago period and stable revenue.
- Compared with the immediately preceding quarter, revenue was higher, gross profit was higher, cost of revenue was similar, and gross margin improved. Compared with the same quarter one year earlier, revenue was similar, gross profit was higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.7%
Gross profit
$649.9M
Revenue
$1.7B
Cost of revenue
$1.0B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+1.7 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 |
|---|---|---|---|---|
| Nov 30, 2023 | $1.8B | $701.3M | $1.1B | 40.0% |
| Feb 29, 2024 | $1.6B | $599.3M | $1.0B | 37.4% |
| May 31, 2024 | $1.6B | $619.6M | $1.0B | 37.7% |
| Aug 31, 2024 | $1.7B | $649.9M | $1.0B | 38.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2024
+1.0 pts
Year-over-year change
Aug 31, 2023
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially and year-over-year, primarily driven by lower cost of revenue relative to the year-ago period and stable revenue.
Compared with the immediately preceding quarter, revenue was higher, gross profit was higher, cost of revenue was similar, and gross margin improved. Compared with the same quarter one year earlier, revenue was similar, gross profit was higher, cost of revenue was lower, and gross margin improved.
Monitor the trajectory of cost of revenue to see if the recent decline is sustained.