Philip Morris International Inc. stock research
FY2024 Q2
Philip Morris International (PM) Gross Margin — Quarter Ended Jun 30, 2024
Revenue less cost of revenue equals gross profit, and gross margin represents gross profit as a share of revenue. In this quarter, revenue increased while cost of revenue rose only modestly, leading to higher gross profit and an improved gross margin compared with the prior quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue less cost of revenue equals gross profit, and gross margin represents gross profit as a share of revenue. In this quarter, revenue increased while cost of revenue rose only modestly, leading to higher gross profit and an improved gross margin compared with the prior quarter and the same quarter one year earlier.
- The strongest observable margin driver is the faster growth in revenue relative to cost of revenue, which expanded the gross margin. The filing notes the company's focus on protecting or enhancing margins through price increases, a factor that may support this trend.
- Sequentially, revenue, gross profit, and gross margin were higher, while cost of revenue was slightly higher. Compared with the same quarter one year earlier, revenue, gross profit, and gross margin were also higher, with cost of revenue slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.7%
Gross profit
$6.1B
Revenue
$9.5B
Cost of revenue
$3.3B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $9.1B | $6.0B | $3.2B | 65.4% |
| Dec 31, 2023 | $9.0B | $5.6B | $3.5B | 61.7% |
| Mar 31, 2024 | $8.8B | $5.6B | $3.2B | 63.7% |
| Jun 30, 2024 | $9.5B | $6.1B | $3.3B | 64.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.0 pts
Year-over-year change
Jun 30, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the faster growth in revenue relative to cost of revenue, which expanded the gross margin. The filing notes the company's focus on protecting or enhancing margins through price increases, a factor that may support this trend.
Sequentially, revenue, gross profit, and gross margin were higher, while cost of revenue was slightly higher. Compared with the same quarter one year earlier, revenue, gross profit, and gross margin were also higher, with cost of revenue slightly higher.
Monitor changes in adult consumer preferences, as the filing identifies them as a factor that could affect revenue and margins.