Philip Morris International Inc. stock research
FY2024 Q4
Philip Morris International (PM) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit were lower than the previous quarter but higher than the same quarter last year. Gross margin weakened sequentially but improved compared to the prior year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit were lower than the previous quarter but higher than the same quarter last year. Gross margin weakened sequentially but improved compared to the prior year.
- The strongest observable driver is the year-over-year improvement in gross margin, supported by higher revenue and lower cost of revenue relative to the prior year.
- Compared to the immediately preceding quarter, revenue and gross profit decreased while cost of revenue remained unchanged, leading to a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit increased while cost of revenue decreased, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
64.7%
Gross profit
$6.3B
Revenue
$9.7B
Cost of revenue
$3.4B
Quarter-over-quarter change
-1.3 pts
Year-over-year change
+3.0 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, 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% |
| Dec 31, 2024 | $9.7B | $6.3B | $3.4B | 64.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.3 pts
Year-over-year change
Dec 31, 2023
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the year-over-year improvement in gross margin, supported by higher revenue and lower cost of revenue relative to the prior year.
Compared to the immediately preceding quarter, revenue and gross profit decreased while cost of revenue remained unchanged, leading to a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit increased while cost of revenue decreased, resulting in a higher gross margin.
Monitor the trend in cost of revenue relative to revenue, as it remained stable sequentially despite a decline in revenue.