Viatris Inc. stock research
FY2024 Q2
Viatris (VTRS) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Gross profit decreased relative to both the prior quarter and the year-ago period, while cost of revenue increased compared to the prior quarter but was stable versus a year ago, resulting in a gross margin that weakened from both comparison periods.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was slightly higher than the prior quarter but lower than the same quarter last year. Gross profit decreased relative to both the prior quarter and the year-ago period, while cost of revenue increased compared to the prior quarter but was stable versus a year ago, resulting in a gross margin that weakened from both comparison periods.
- The gross margin declined as cost of revenue grew at a faster pace than revenue from the prior quarter, while year-over-year revenue decreased and gross profit fell more sharply. The margin is primarily driven by the relationship between gross profit and cost of revenue.
- Compared to the immediately preceding quarter, revenue was higher but gross profit was lower and gross margin weakened. Relative to the same quarter one year earlier, both revenue and gross profit were lower, and gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.2%
Gross profit
$1.4B
Revenue
$3.8B
Cost of revenue
$2.4B
Quarter-over-quarter change
-3.0 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $3.9B | $1.7B | $2.3B | 43.0% |
| Dec 31, 2023 | $3.8B | $1.6B | $2.2B | 41.7% |
| Mar 31, 2024 | $3.7B | $1.5B | $2.2B | 41.2% |
| Jun 30, 2024 | $3.8B | $1.4B | $2.4B | 38.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-3.0 pts
Year-over-year change
Jun 30, 2023
-3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined as cost of revenue grew at a faster pace than revenue from the prior quarter, while year-over-year revenue decreased and gross profit fell more sharply. The margin is primarily driven by the relationship between gross profit and cost of revenue.
Compared to the immediately preceding quarter, revenue was higher but gross profit was lower and gross margin weakened. Relative to the same quarter one year earlier, both revenue and gross profit were lower, and gross margin also weakened.
Monitor the trajectory of cost of revenue relative to revenue, as it increased sequentially while revenue only modestly improved.