Viatris Inc. stock research
FY2023 Q1
Viatris (VTRS) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and cost of revenue both decreased compared to the prior quarter, but gross profit increased, resulting in a higher gross margin. Relative to the same quarter a year ago, revenue and gross profit were lower, and the gross margin was slightly lower.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and cost of revenue both decreased compared to the prior quarter, but gross profit increased, resulting in a higher gross margin. Relative to the same quarter a year ago, revenue and gross profit were lower, and the gross margin was slightly lower.
- The gross margin improvement from the previous quarter was driven by a proportionally larger decline in cost of revenue compared to the decline in revenue.
- Sequentially, gross margin improved from the prior quarter, but year-over-year it weakened slightly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.5%
Gross profit
$1.5B
Revenue
$3.7B
Cost of revenue
$2.2B
Quarter-over-quarter change
n/a
Year-over-year change
-0.9 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 | $3.7B | $1.5B | $2.2B | 41.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the previous quarter was driven by a proportionally larger decline in cost of revenue compared to the decline in revenue.
Sequentially, gross margin improved from the prior quarter, but year-over-year it weakened slightly.
Monitor the trend in cost of revenue relative to revenue, especially as the filing notes a decrease in operating cash flow compared to the prior year period.