Keurig Dr Pepper Inc. stock research
FY2023 Q3
Keurig Dr Pepper (KDP) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit and gross margin both improved relative to the prior quarter and the year-ago quarter, while cost of revenue remained unchanged sequentially and was lower year over year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to the prior quarter and higher than the same quarter last year. Gross profit and gross margin both improved relative to the prior quarter and the year-ago quarter, while cost of revenue remained unchanged sequentially and was lower year over year.
- Gross margin improved sequentially and year over year, driven by a combination of stable revenue and a lower cost of revenue relative to revenue. The strongest observable driver is the reduction in cost of revenue as a proportion of revenue.
- Compared to the prior quarter, revenue was stable while gross profit increased, leading to an improved gross margin. Compared to the same quarter last year, revenue was higher and gross profit was higher, with gross margin also improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.5%
Gross profit
$2.1B
Revenue
$3.8B
Cost of revenue
$1.7B
Quarter-over-quarter change
+1.6 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.4B | $1.7B | $1.6B | 52.0% |
| Jun 30, 2023 | $3.8B | $2.0B | $1.7B | 53.9% |
| Sep 30, 2023 | $3.8B | $2.1B | $1.7B | 55.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.6 pts
Year-over-year change
Sep 30, 2022
+3.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially and year over year, driven by a combination of stable revenue and a lower cost of revenue relative to revenue. The strongest observable driver is the reduction in cost of revenue as a proportion of revenue.
Compared to the prior quarter, revenue was stable while gross profit increased, leading to an improved gross margin. Compared to the same quarter last year, revenue was higher and gross profit was higher, with gross margin also improving.
Monitor the trajectory of cost of revenue, as it remained flat sequentially despite revenue stability, and any future increase could pressure gross margin.