Philip Morris International Inc. stock research
FY2023 Q2
Philip Morris International (PM) Gross Margin — Quarter Ended Jun 30, 2023
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened compared to the year-ago quarter.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened compared to the year-ago quarter.
- The sequential improvement in gross margin was associated with revenue increasing more than cost of revenue, while the year-over-year decline in gross margin was associated with cost of revenue increasing more than revenue.
- Compared to the prior quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.0%
Gross profit
$5.7B
Revenue
$9.0B
Cost of revenue
$3.2B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
-2.2 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% |
| Jun 30, 2023 | $9.0B | $5.7B | $3.2B | 64.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.9 pts
Year-over-year change
Jun 30, 2022
-2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was associated with revenue increasing more than cost of revenue, while the year-over-year decline in gross margin was associated with cost of revenue increasing more than revenue.
Compared to the prior quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin weakened.
Monitor the ratio of cost of revenue to revenue for signs of further margin pressure.