MO

Altria Group, Inc. stock research

Dec 31, 2024

FY2024 Q4

Altria Group (MO) Gross Margin — Quarter Ended Dec 31, 2024

Revenue and gross profit were both lower than the prior quarter, while cost of revenue remained stable, resulting in a slightly weakened gross margin. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, and gross margin improved.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue and gross profit were both lower than the prior quarter, while cost of revenue remained stable, resulting in a slightly weakened gross margin. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, and gross margin improved.

  • The strongest observable margin driver is the improvement in gross margin relative to the same quarter one year earlier, as gross profit increased while revenue remained stable.
  • Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, and gross margin improved.

Gross margin snapshot

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

Gross margin

60.3%

Gross profit

$3.6B

Revenue

$6.0B

Cost of revenue

$1.5B

Quarter-over-quarter change

-0.5 pts

Year-over-year change

+1.8 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, 2024$5.6B$3.3B$1.4B58.8%
Jun 30, 2024$6.2B$3.7B$1.6B59.2%
Sep 30, 2024$6.3B$3.8B$1.5B60.8%
Dec 31, 2024$6.0B$3.6B$1.5B60.3%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2024

-0.5 pts

Year-over-year change

Dec 31, 2023

+1.8 pts

What the margin says

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

The strongest observable margin driver is the improvement in gross margin relative to the same quarter one year earlier, as gross profit increased while revenue remained stable.

Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was stable, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, and gross margin improved.

Monitor the company's reassessment of smoke-free goals due to illicit flavored disposable e-vapor products, as noted in the filing context.