Keurig Dr Pepper Inc. stock research
FY2024 Q1
Keurig Dr Pepper (KDP) Gross Margin — Quarter Ended Mar 31, 2024
In the current quarter, revenue and gross profit decreased compared to the previous quarter but increased relative to the same quarter last year, while cost of revenue declined both sequentially and year-over-year. Gross margin weakened slightly from the prior quarter but improved compared to the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
In the current quarter, revenue and gross profit decreased compared to the previous quarter but increased relative to the same quarter last year, while cost of revenue declined both sequentially and year-over-year. Gross margin weakened slightly from the prior quarter but improved compared to the year-ago quarter.
- The most notable margin driver was the year-over-year improvement in gross margin, which rose from the prior year's level.
- Compared to the immediately preceding quarter, gross margin was slightly lower, and revenue and gross profit also decreased. Compared to the same quarter one year ago, gross margin was higher, with revenue and gross profit increasing while cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.9%
Gross profit
$1.9B
Revenue
$3.5B
Cost of revenue
$1.5B
Quarter-over-quarter change
-0.5 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $3.8B | $2.0B | $1.7B | 53.9% |
| Sep 30, 2023 | $3.8B | $2.1B | $1.7B | 55.5% |
| Dec 31, 2023 | $3.9B | $2.2B | $1.7B | 56.5% |
| Mar 31, 2024 | $3.5B | $1.9B | $1.5B | 55.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.5 pts
Year-over-year change
Mar 31, 2023
+3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver was the year-over-year improvement in gross margin, which rose from the prior year's level.
Compared to the immediately preceding quarter, gross margin was slightly lower, and revenue and gross profit also decreased. Compared to the same quarter one year ago, gross margin was higher, with revenue and gross profit increasing while cost of revenue was lower.
Monitor the company's productivity initiatives as they are expected to support gross margin enhancement.