Philip Morris International Inc. stock research
FY2023 Q4
Philip Morris International (PM) Gross Margin — Quarter Ended Dec 31, 2023
Revenue decreased sequentially while gross profit declined more sharply, causing gross margin to weaken compared to the prior quarter. Year-over-year, revenue and gross profit both grew, and gross margin improved slightly.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue decreased sequentially while gross profit declined more sharply, causing gross margin to weaken compared to the prior quarter. Year-over-year, revenue and gross profit both grew, and gross margin improved slightly.
- The cost of revenue rose sequentially when revenue fell, indicating cost growth outpaced revenue in the current quarter. Year-over-year, cost of revenue was stable while revenue increased, supporting the margin improvement.
- Compared to the prior quarter, gross margin weakened as cost of revenue increased and revenue decreased. Relative to the same quarter last year, gross margin improved, driven by revenue growth with virtually unchanged cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.7%
Gross profit
$5.6B
Revenue
$9.0B
Cost of revenue
$3.5B
Quarter-over-quarter change
-3.6 pts
Year-over-year change
+1.1 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% |
| Dec 31, 2023 | $9.0B | $5.6B | $3.5B | 61.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-3.6 pts
Year-over-year change
Dec 31, 2022
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The cost of revenue rose sequentially when revenue fell, indicating cost growth outpaced revenue in the current quarter. Year-over-year, cost of revenue was stable while revenue increased, supporting the margin improvement.
Compared to the prior quarter, gross margin weakened as cost of revenue increased and revenue decreased. Relative to the same quarter last year, gross margin improved, driven by revenue growth with virtually unchanged cost of revenue.
Monitor the trajectory of cost of revenue, which rose sequentially and may continue to pressure margins if revenue does not recover.