Philip Morris International Inc (PM)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 24,549,000 | 23,851,000 | 23,282,000 | 22,898,000 | 22,281,000 | 21,637,000 | 20,758,000 | 20,203,000 | 20,360,000 | 20,716,000 | 21,145,000 | 21,202,000 | 21,375,000 | 20,950,000 | 20,454,000 | 19,685,000 | 19,125,000 | 19,188,000 | 19,195,000 | 19,757,000 |
| Revenue (ttm) | US$ in thousands | 37,277,000 | 36,342,000 | 35,311,000 | 34,513,000 | 53,999,000 | 74,368,000 | 95,357,000 | 115,671,000 | 115,302,000 | 116,067,000 | 116,655,000 | 116,360,000 | 116,285,000 | 94,126,000 | 92,269,000 | 88,660,000 | 87,178,000 | 87,447,000 | 87,638,000 | 90,928,000 |
| Gross profit margin | 65.86% | 65.63% | 65.93% | 66.35% | 41.26% | 29.09% | 21.77% | 17.47% | 17.66% | 17.85% | 18.13% | 18.22% | 18.38% | 22.26% | 22.17% | 22.20% | 21.94% | 21.94% | 21.90% | 21.73% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $24,549,000K ÷ $37,277,000K
= 65.86%
Philip Morris International Inc's gross profit margin has shown fluctuations over the past few years. The margin started at around 21-22% in the first three quarters of 2020, showing consistency. However, it then experienced a decline to around 18% by the end of 2021 and further dropped to around 17% by the third quarter of 2022, indicating potential challenges in maintaining profitability.
Subsequently, there was a significant improvement in the gross profit margin, jumping to 41.26% by the end of 2023, which continued to increase sharply to 66-67% in the first half of 2024, suggesting a remarkable turnaround in profitability.
The surge in the gross profit margin from late 2023 to mid-2024 indicates that Philip Morris International Inc might have implemented successful cost-cutting measures, increased sales of higher-margin products, or improved operational efficiencies. However, it's essential to monitor future results to see if the company can sustain or further improve this level of profitability.
See also:
Philip Morris International Inc Gross Profit Margin (Quarterly Data)