The Coca-Cola Company stock research
FY2023 Q3
The Coca-Cola (KO) Gross Margin — Quarter Ended Sep 29, 2023
Revenue was unchanged from the prior quarter, while gross profit increased and cost of revenue decreased, resulting in an improved gross margin. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher, with cost of revenue showing a smaller increase.
Gross margin takeaway
Quarter ended Sep 29, 2023 · FY2023 Q3
Revenue was unchanged from the prior quarter, while gross profit increased and cost of revenue decreased, resulting in an improved gross margin. Compared to the same quarter last year, revenue, gross profit, and gross margin were all higher, with cost of revenue showing a smaller increase.
- The gross margin improved sequentially and year over year, driven by a lower cost of revenue relative to revenue in the current quarter.
- Compared to the immediately preceding quarter, gross margin was higher as cost of revenue declined while revenue held steady. Versus the same quarter one year earlier, gross margin was higher, supported by a larger increase in gross profit relative to the rise in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.0%
Gross profit
$7.3B
Revenue
$12.0B
Cost of revenue
$4.7B
Quarter-over-quarter change
+2.1 pts
Year-over-year change
+2.3 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 | $11.0B | $6.7B | $4.3B | 60.7% |
| Jun 30, 2023 | $12.0B | $7.1B | $4.9B | 59.0% |
| Sep 29, 2023 | $12.0B | $7.3B | $4.7B | 61.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+2.1 pts
Year-over-year change
Sep 30, 2022
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year over year, driven by a lower cost of revenue relative to revenue in the current quarter.
Compared to the immediately preceding quarter, gross margin was higher as cost of revenue declined while revenue held steady. Versus the same quarter one year earlier, gross margin was higher, supported by a larger increase in gross profit relative to the rise in revenue.
Monitor the trajectory of cost of revenue, which decreased sequentially but increased year over year.