Keurig Dr Pepper Inc. stock research
FY2024 Q3
Keurig Dr Pepper (KDP) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was flat sequentially and increased year over year. Gross profit was slightly lower than the prior quarter and unchanged from a year ago, leading to a gross margin that weakened marginally.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue was flat sequentially and increased year over year. Gross profit was slightly lower than the prior quarter and unchanged from a year ago, leading to a gross margin that weakened marginally.
- The stability of cost of revenue relative to revenue was the primary factor influencing gross margin. Cost of revenue remained unchanged from the previous quarter, while revenue was flat, resulting in a slight decline in gross margin.
- Compared to the previous quarter, gross margin weakened slightly as gross profit decreased while revenue was stable. Year over year, gross margin also edged lower, with a higher cost of revenue offsetting revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.0%
Gross profit
$2.1B
Revenue
$3.9B
Cost of revenue
$1.8B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.5 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $3.9B | $2.1B | $1.8B | 55.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.4 pts
Year-over-year change
Sep 30, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The stability of cost of revenue relative to revenue was the primary factor influencing gross margin. Cost of revenue remained unchanged from the previous quarter, while revenue was flat, resulting in a slight decline in gross margin.
Compared to the previous quarter, gross margin weakened slightly as gross profit decreased while revenue was stable. Year over year, gross margin also edged lower, with a higher cost of revenue offsetting revenue growth.
Monitor the trajectory of cost of revenue versus revenue to assess future gross margin stability.