Altria Group, Inc. stock research
FY2023 Q2
Altria Group (MO) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was higher than the immediately preceding quarter and stable compared with the same quarter one year earlier; gross profit increased in both comparisons, while cost of revenue rose sequentially but was unchanged year-over-year, resulting in a gross margin that weakened slightly from the prior quarter but improved from the year-ago period. The filing notes the company's subsidiaries include leading manufacturers of both combustible and smoke-free products.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue was higher than the immediately preceding quarter and stable compared with the same quarter one year earlier; gross profit increased in both comparisons, while cost of revenue rose sequentially but was unchanged year-over-year, resulting in a gross margin that weakened slightly from the prior quarter but improved from the year-ago period. The filing notes the company's subsidiaries include leading manufacturers of both combustible and smoke-free products.
- The strongest observable driver is the year-over-year stability in cost of revenue, which allowed gross profit to rise despite flat revenue. This contrasts with the sequential period where cost of revenue increased more rapidly than revenue, causing a slight margin decline.
- Compared with the immediately preceding quarter, revenue and gross profit were higher, but cost of revenue increased proportionally more, leading to a slightly lower gross margin. Against the same quarter one year earlier, revenue was unchanged, cost of revenue was stable, and gross profit was higher, resulting in an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.7%
Gross profit
$3.8B
Revenue
$6.5B
Cost of revenue
$1.7B
Quarter-over-quarter change
-0.5 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $5.7B | $3.3B | $1.4B | 58.2% |
| Jun 30, 2023 | $6.5B | $3.8B | $1.7B | 57.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.5 pts
Year-over-year change
Jun 30, 2022
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the year-over-year stability in cost of revenue, which allowed gross profit to rise despite flat revenue. This contrasts with the sequential period where cost of revenue increased more rapidly than revenue, causing a slight margin decline.
Compared with the immediately preceding quarter, revenue and gross profit were higher, but cost of revenue increased proportionally more, leading to a slightly lower gross margin. Against the same quarter one year earlier, revenue was unchanged, cost of revenue was stable, and gross profit was higher, resulting in an improved gross margin.
Monitor the relationship between cost of revenue and revenue growth, as changes in this ratio have directly influenced margin trends.