Keurig Dr Pepper Inc. stock research
FY2023 Q2
Keurig Dr Pepper (KDP) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace. As a result, gross margin improved relative to both periods.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace. As a result, gross margin improved relative to both periods.
- The gross margin strengthened sequentially and year-over-year, driven by revenue growth outpacing the increase in cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were also higher, with gross margin showing improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.9%
Gross profit
$2.0B
Revenue
$3.8B
Cost of revenue
$1.7B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
+3.9 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 | $3.4B | $1.7B | $1.6B | 52.0% |
| Jun 30, 2023 | $3.8B | $2.0B | $1.7B | 53.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.9 pts
Year-over-year change
Jun 30, 2022
+3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened sequentially and year-over-year, driven by revenue growth outpacing the increase in cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were also higher, with gross margin showing improvement.
Monitor the trajectory of cost of revenue relative to revenue, as its slower growth was the key factor behind the margin improvement.