Keurig Dr Pepper Inc. stock research
FY2024 Q4
Keurig Dr Pepper (KDP) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened from the year-ago period.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the prior quarter but weakened from the year-ago period.
- The sequential improvement in gross margin was driven by revenue growth outpacing cost of revenue growth, as cost of revenue remained stable. However, compared to the same quarter last year, cost of revenue increased more relative to revenue, leading to a lower gross margin.
- Revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier. Gross margin was higher than the prior quarter but lower than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.9%
Gross profit
$2.3B
Revenue
$4.1B
Cost of revenue
$1.8B
Quarter-over-quarter change
+0.9 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $4.1B | $2.3B | $1.8B | 55.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.9 pts
Year-over-year change
Dec 31, 2023
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by revenue growth outpacing cost of revenue growth, as cost of revenue remained stable. However, compared to the same quarter last year, cost of revenue increased more relative to revenue, leading to a lower gross margin.
Revenue and gross profit were higher than both the immediately preceding quarter and the same quarter one year earlier. Gross margin was higher than the prior quarter but lower than the year-ago quarter.
Monitor the trajectory of cost of revenue relative to revenue, as it has shown divergent trends sequentially versus year-over-year.