Keurig Dr Pepper Inc. stock research
FY2024 Q2
Keurig Dr Pepper (KDP) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.
- Gross profit grew faster than cost of revenue relative to the same quarter last year, supporting margin expansion year over year. The sequential decline in gross margin was driven by cost of revenue increasing at a faster rate than revenue.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was slightly lower. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.4%
Gross profit
$2.2B
Revenue
$3.9B
Cost of revenue
$1.8B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+1.5 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $3.9B | $2.2B | $1.8B | 55.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.6 pts
Year-over-year change
Jun 30, 2023
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than cost of revenue relative to the same quarter last year, supporting margin expansion year over year. The sequential decline in gross margin was driven by cost of revenue increasing at a faster rate than revenue.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was slightly lower. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher.
Monitor the trajectory of cost of revenue relative to revenue, as its faster sequential growth pressured gross margin.