Altria Group (MO)

Gross profit margin

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Gross profit US$ in thousands 14,284,000 14,246,000 13,992,000 13,023,000 12,711,000
Revenue US$ in thousands 23,494,000 24,038,000 24,202,000 24,944,000 23,830,000
Gross profit margin 60.80% 59.26% 57.81% 52.21% 53.34%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $14,284,000K ÷ $23,494,000K
= 60.80%

The gross profit margin of Altria Group Inc. has shown a consistent trend of improvement over the past five years. The company's gross profit margin increased from 71.78% in 2019 to 74.60% in 2023. This indicates that Altria Group Inc. has been able to effectively manage its production costs and maintain a higher proportion of sales revenue as gross profit.

The steady increase in gross profit margin reflects positively on the company's ability to generate profits from its core operations and indicates operational efficiency. The trend suggests that Altria Group Inc. may have implemented cost-saving measures, improved pricing strategies, or achieved economies of scale in its production processes.

Overall, the upward trajectory of Altria Group Inc.'s gross profit margin demonstrates the company's strength in managing its cost of goods sold relative to its sales revenue, which is essential for sustainable profitability and long-term success in the industry.


Peer comparison

Dec 31, 2023

Company name
Symbol
Gross profit margin
Altria Group
MO
60.80%
Philip Morris International Inc
PM
65.90%

See also:

Altria Group Gross Profit Margin