Altria Group, Inc. stock research
FY2025 Q1
Altria Group (MO) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit were lower compared to both the prior quarter and the same quarter last year, but gross margin improved due to a proportionally larger reduction in cost of revenue. The margin expansion occurred despite a decline in top-line performance.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit were lower compared to both the prior quarter and the same quarter last year, but gross margin improved due to a proportionally larger reduction in cost of revenue. The margin expansion occurred despite a decline in top-line performance.
- The strongest observable margin driver is the decline in cost of revenue that outpaced the decline in revenue, which directly supported gross margin expansion.
- Compared to the immediately preceding quarter, gross margin improved; relative to the same quarter one year ago, gross margin also strengthened. Revenue and gross profit were lower in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.8%
Gross profit
$3.2B
Revenue
$5.3B
Cost of revenue
$1.3B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+3.0 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $6.2B | $3.7B | $1.6B | 59.2% |
| Sep 30, 2024 | $6.3B | $3.8B | $1.5B | 60.8% |
| Dec 31, 2024 | $6.0B | $3.6B | $1.5B | 60.3% |
| Mar 31, 2025 | $5.3B | $3.2B | $1.3B | 61.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.5 pts
Year-over-year change
Mar 31, 2024
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the decline in cost of revenue that outpaced the decline in revenue, which directly supported gross margin expansion.
Compared to the immediately preceding quarter, gross margin improved; relative to the same quarter one year ago, gross margin also strengthened. Revenue and gross profit were lower in both comparisons.
Monitor whether the cost reduction trend can be sustained given the lower revenue base.