Philip Morris International Inc. stock research
FY2023 Q3
Philip Morris International (PM) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit increased compared to both the prior quarter and the year-ago quarter. Gross margin improved, reaching a level higher than both comparable periods, as cost of revenue remained unchanged from the prior quarter and increased less than revenue relative to the year-ago quarter.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit increased compared to both the prior quarter and the year-ago quarter. Gross margin improved, reaching a level higher than both comparable periods, as cost of revenue remained unchanged from the prior quarter and increased less than revenue relative to the year-ago quarter.
- The primary driver of the improved gross margin was revenue growth that outpaced the change in cost of revenue. Cost of revenue was stable quarter-over-quarter while revenue rose, and year-over-year revenue increased more than cost of revenue.
- Compared to the prior quarter, gross margin improved as revenue increased while cost of revenue stayed flat. Compared to the year-ago quarter, gross margin also improved as revenue grew more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.4%
Gross profit
$6.0B
Revenue
$9.1B
Cost of revenue
$3.2B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
+1.9 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% |
| Sep 30, 2023 | $9.1B | $6.0B | $3.2B | 65.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.4 pts
Year-over-year change
Sep 30, 2022
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the improved gross margin was revenue growth that outpaced the change in cost of revenue. Cost of revenue was stable quarter-over-quarter while revenue rose, and year-over-year revenue increased more than cost of revenue.
Compared to the prior quarter, gross margin improved as revenue increased while cost of revenue stayed flat. Compared to the year-ago quarter, gross margin also improved as revenue grew more than cost of revenue.
Monitor whether cost of revenue can remain stable as revenue continues to grow, or if it will increase in line with revenue.