Philip Morris International Inc. stock research
FY2023 Q1
Philip Morris International (PM) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was slightly lower than the prior quarter, while gross profit improved, leading to a higher gross margin. Compared to the same quarter last year, revenue increased but gross profit declined, resulting in a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was slightly lower than the prior quarter, while gross profit improved, leading to a higher gross margin. Compared to the same quarter last year, revenue increased but gross profit declined, resulting in a lower gross margin.
- Cost of revenue decreased relative to the previous quarter, which supported the improvement in gross profit and gross margin. This cost reduction was the most observable factor behind the margin expansion.
- Compared to the immediately preceding quarter, gross margin improved as gross profit rose while revenue edged lower. Versus the same quarter one year earlier, gross margin weakened due to a higher cost of revenue outpacing the revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.1%
Gross profit
$5.0B
Revenue
$8.0B
Cost of revenue
$3.0B
Quarter-over-quarter change
n/a
Year-over-year change
-4.2 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 | $8.0B | $5.0B | $3.0B | 62.1% |
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
-4.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue decreased relative to the previous quarter, which supported the improvement in gross profit and gross margin. This cost reduction was the most observable factor behind the margin expansion.
Compared to the immediately preceding quarter, gross margin improved as gross profit rose while revenue edged lower. Versus the same quarter one year earlier, gross margin weakened due to a higher cost of revenue outpacing the revenue growth.
Monitor the trajectory of cost of revenue, which was the primary factor distinguishing the margin performance between periods.