Altria Group (MO) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit declined from both the prior quarter and the year-ago quarter, while gross margin improved. The improvement in gross margin reflected a greater proportional decrease in cost of revenue compared to revenue.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

The primary driver of the gross margin improvement was the reduction in cost of revenue, which fell more rapidly than revenue.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Similarly, versus the same quarter last year, revenue and gross profit decreased while gross margin increased.

Gross margin snapshot

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

Gross margin

58.2%

Gross profit

$3.3B

Revenue

$5.7B

Cost of revenue

$1.4B

Quarter-over-quarter change

n/a

Year-over-year change

+1.0 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
Mar 31, 2023	$5.7B	$3.3B	$1.4B	58.2%

Quarterly comparisons

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

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

+1.0 pts

What the margin says

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

The primary driver of the gross margin improvement was the reduction in cost of revenue, which fell more rapidly than revenue.

Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Similarly, versus the same quarter last year, revenue and gross profit decreased while gross margin increased.

Monitor the trend of cost of revenue relative to revenue, as the margin improvement was driven by cost reductions.