The Coca-Cola Company stock research
FY2024 Q3
The Coca-Cola (KO) Gross Margin — Quarter Ended Sep 27, 2024
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue declined slightly. Gross margin weakened marginally versus both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Sep 27, 2024 · FY2024 Q3
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue declined slightly. Gross margin weakened marginally versus both the prior quarter and the same quarter last year.
- The decline in gross profit was proportionally larger than the decline in revenue, leading to a slightly lower gross margin. Cost of revenue decreased at a slower rate than revenue, compressing margin.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Versus the same quarter one year earlier, revenue was slightly lower, gross profit was slightly lower, and gross margin was also slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.7%
Gross profit
$7.2B
Revenue
$11.9B
Cost of revenue
$4.7B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.4 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 | $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% |
| Sep 27, 2024 | $11.9B | $7.2B | $4.7B | 60.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2024
-0.4 pts
Year-over-year change
Sep 29, 2023
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit was proportionally larger than the decline in revenue, leading to a slightly lower gross margin. Cost of revenue decreased at a slower rate than revenue, compressing margin.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Versus the same quarter one year earlier, revenue was slightly lower, gross profit was slightly lower, and gross margin was also slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline contributed to margin compression.