MO

Altria Group, Inc. stock research

Dec 31, 2023

FY2023 Q4

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

For the current quarter, revenue and gross profit both declined sequentially, while cost of revenue also decreased, resulting in a slightly lower gross margin. Compared to the same quarter a year earlier, revenue was lower, gross profit was stable, and cost of revenue was lower, leading to an improved gross margin.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

For the current quarter, revenue and gross profit both declined sequentially, while cost of revenue also decreased, resulting in a slightly lower gross margin. Compared to the same quarter a year earlier, revenue was lower, gross profit was stable, and cost of revenue was lower, leading to an improved gross margin.

  • The most notable factor is the reduction in cost of revenue compared to the prior quarter, which helped partially offset the revenue decline. The filing context notes the recent acquisition of NJOY, which may influence future cost and revenue structures.
  • Gross margin weakened slightly from the previous quarter but improved versus the same quarter last year. Revenue and gross profit were lower sequentially, but cost of revenue also declined.

Gross margin snapshot

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

Gross margin

58.6%

Gross profit

$3.5B

Revenue

$6.0B

Cost of revenue

$1.5B

Quarter-over-quarter change

-0.3 pts

Year-over-year change

+1.1 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$5.7B$3.3B$1.4B58.2%
Jun 30, 2023$6.5B$3.8B$1.7B57.7%
Sep 30, 2023$6.3B$3.7B$1.6B58.9%
Dec 31, 2023$6.0B$3.5B$1.5B58.6%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-0.3 pts

Year-over-year change

Dec 31, 2022

+1.1 pts

What the margin says

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

The most notable factor is the reduction in cost of revenue compared to the prior quarter, which helped partially offset the revenue decline. The filing context notes the recent acquisition of NJOY, which may influence future cost and revenue structures.

Gross margin weakened slightly from the previous quarter but improved versus the same quarter last year. Revenue and gross profit were lower sequentially, but cost of revenue also declined.

Monitor the integration of the NJOY acquisition and its effect on cost of revenue and gross margin.