PepsiCo, Inc. stock research
FY2023 Q1
PepsiCo (PEP) Gross Margin — Quarter Ended Mar 25, 2023
Revenue, gross profit, and cost of revenue all moved in the same direction relative to the prior quarter and the year-ago quarter. The gross margin improved compared to both periods, indicating a higher proportion of revenue retained as gross profit.
Gross margin takeaway
Quarter ended Mar 25, 2023 · FY2023 Q1
Revenue, gross profit, and cost of revenue all moved in the same direction relative to the prior quarter and the year-ago quarter. The gross margin improved compared to both periods, indicating a higher proportion of revenue retained as gross profit.
- The most notable margin driver is the improvement in gross margin from both the prior quarter and the year-ago quarter. This change reflects a favorable relationship between revenue and cost of revenue.
- Compared to the prior quarter, revenue decreased while gross profit decreased and cost of revenue decreased, with gross margin improving. Compared to the same quarter last year, revenue increased, gross profit increased, and cost of revenue increased, with gross margin also improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.2%
Gross profit
$9.9B
Revenue
$17.8B
Cost of revenue
$8.0B
Quarter-over-quarter change
n/a
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| Mar 25, 2023 | $17.8B | $9.9B | $8.0B | 55.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 19, 2022
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver is the improvement in gross margin from both the prior quarter and the year-ago quarter. This change reflects a favorable relationship between revenue and cost of revenue.
Compared to the prior quarter, revenue decreased while gross profit decreased and cost of revenue decreased, with gross margin improving. Compared to the same quarter last year, revenue increased, gross profit increased, and cost of revenue increased, with gross margin also improving.
Monitor the impact of items affecting comparability, such as mark-to-market and restructuring charges, on cost of sales and gross profit, as detailed in the filing.