The Coca-Cola Company stock research
FY2024 Q1
The Coca-Cola (KO) Gross Margin — Quarter Ended Mar 29, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased sequentially but was slightly higher year over year. Gross margin improved versus both periods, reflecting a stronger relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Mar 29, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue decreased sequentially but was slightly higher year over year. Gross margin improved versus both periods, reflecting a stronger relationship between revenue and cost of revenue.
- The most observable driver of gross margin improvement is the combination of higher revenue and lower cost of revenue relative to the preceding quarter, which directly expanded gross profit. Compared to the year-ago quarter, revenue grew faster than cost of revenue, supporting a higher gross margin.
- Sequentially, gross margin strengthened from the prior quarter, as revenue rose and cost of revenue declined. Year over year, gross margin also improved, with revenue increasing while cost of revenue remained relatively stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.5%
Gross profit
$7.1B
Revenue
$11.3B
Cost of revenue
$4.2B
Quarter-over-quarter change
+5.2 pts
Year-over-year change
+1.8 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 | $12.0B | $7.1B | $4.9B | 59.0% |
| Sep 29, 2023 | $12.0B | $7.3B | $4.7B | 61.0% |
| Dec 31, 2023 | $10.8B | $6.2B | $4.6B | 57.3% |
| Mar 29, 2024 | $11.3B | $7.1B | $4.2B | 62.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+5.2 pts
Year-over-year change
Mar 31, 2023
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of gross margin improvement is the combination of higher revenue and lower cost of revenue relative to the preceding quarter, which directly expanded gross profit. Compared to the year-ago quarter, revenue grew faster than cost of revenue, supporting a higher gross margin.
Sequentially, gross margin strengthened from the prior quarter, as revenue rose and cost of revenue declined. Year over year, gross margin also improved, with revenue increasing while cost of revenue remained relatively stable.
Monitor whether cost of revenue remains contained relative to revenue in future quarters, as its current level is a key factor in sustaining gross margin.