VT

Viatris Inc. stock research

Dec 31, 2023

FY2023 Q4

Viatris (VTRS) Gross Margin — Quarter Ended Dec 31, 2023

In the current quarter, revenue and gross profit both decreased compared to the previous quarter, while cost of revenue also declined; gross margin weakened slightly. Compared to the same quarter one year earlier, gross profit increased and cost of revenue decreased, resulting in a higher gross margin.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

In the current quarter, revenue and gross profit both decreased compared to the previous quarter, while cost of revenue also declined; gross margin weakened slightly. Compared to the same quarter one year earlier, gross profit increased and cost of revenue decreased, resulting in a higher gross margin.

  • The strongest observable margin driver is the year-over-year improvement in gross margin, which rose as gross profit increased and cost of revenue declined.
  • Compared to the preceding quarter, gross margin was lower, as revenue and gross profit decreased at a slightly different pace. Compared to the same quarter one year earlier, gross margin was higher, with gross profit rising and cost of revenue falling.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

41.7%

Gross profit

$1.6B

Revenue

$3.8B

Cost of revenue

$2.2B

Quarter-over-quarter change

-1.3 pts

Year-over-year change

+8.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$3.7B$1.5B$2.2B41.5%
Jun 30, 2023$3.9B$1.6B$2.3B41.1%
Sep 30, 2023$3.9B$1.7B$2.3B43.0%
Dec 31, 2023$3.8B$1.6B$2.2B41.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2023

-1.3 pts

Year-over-year change

Dec 31, 2022

+8.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the year-over-year improvement in gross margin, which rose as gross profit increased and cost of revenue declined.

Compared to the preceding quarter, gross margin was lower, as revenue and gross profit decreased at a slightly different pace. Compared to the same quarter one year earlier, gross margin was higher, with gross profit rising and cost of revenue falling.

Monitor the trend in operating cash flow, which decreased year-over-year according to the filing.