Philip Morris International Inc. stock research
FY2024 Q3
Philip Morris International (PM) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved in both comparisons, reflecting a larger increase in gross profit relative to the increase in cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved in both comparisons, reflecting a larger increase in gross profit relative to the increase in cost of revenue.
- The primary observable driver of the gross margin improvement was that cost of revenue grew at a slower rate than revenue, allowing gross profit to expand more rapidly.
- Sequentially, revenue, gross profit, and cost of revenue all rose, with gross margin improving. Year-over-year, the same pattern held, with gross margin higher than a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
66.0%
Gross profit
$6.5B
Revenue
$9.9B
Cost of revenue
$3.4B
Quarter-over-quarter change
+1.4 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $9.9B | $6.5B | $3.4B | 66.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.4 pts
Year-over-year change
Sep 30, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin improvement was that cost of revenue grew at a slower rate than revenue, allowing gross profit to expand more rapidly.
Sequentially, revenue, gross profit, and cost of revenue all rose, with gross margin improving. Year-over-year, the same pattern held, with gross margin higher than a year ago.
Monitor the relationship between cost of revenue and revenue growth to assess margin sustainability.