The Coca-Cola Company stock research
FY2024 Q2
The Coca-Cola (KO) Gross Margin — Quarter Ended Jun 28, 2024
Revenue and gross profit both increased compared to the previous quarter and the year-ago quarter. Gross margin improved year-over-year but weakened sequentially.
Gross margin takeaway
Quarter ended Jun 28, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the previous quarter and the year-ago quarter. Gross margin improved year-over-year but weakened sequentially.
- The year-over-year improvement in gross margin was the strongest observable driver, as revenue grew while cost of revenue declined.
- Compared to the previous quarter, gross margin was lower due to a larger increase in cost of revenue relative to gross profit. Compared to the same quarter last year, gross margin was higher as cost of revenue decreased while revenue increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.1%
Gross profit
$7.6B
Revenue
$12.4B
Cost of revenue
$4.8B
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+2.1 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 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% |
| Jun 28, 2024 | $12.4B | $7.6B | $4.8B | 61.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2024
-1.4 pts
Year-over-year change
Jun 30, 2023
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was the strongest observable driver, as revenue grew while cost of revenue declined.
Compared to the previous quarter, gross margin was lower due to a larger increase in cost of revenue relative to gross profit. Compared to the same quarter last year, gross margin was higher as cost of revenue decreased while revenue increased.
Monitor the trend in cost of revenue relative to revenue, as the sequential margin decline suggests cost growth outpaced revenue growth.