PepsiCo, Inc. stock research
FY2024 Q1
PepsiCo (PEP) Gross Margin — Quarter Ended Mar 23, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter a year ago.
Gross margin takeaway
Quarter ended Mar 23, 2024 · FY2024 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter a year ago.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the prior quarter, leading to a slight gross margin improvement. However, compared to the same quarter last year, cost of revenue grew at a faster pace relative to revenue, causing gross margin to weaken.
- Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue also decreased, but gross margin improved slightly. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue increased, but gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.8%
Gross profit
$10.0B
Revenue
$18.3B
Cost of revenue
$8.2B
Quarter-over-quarter change
+0.3 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 |
|---|---|---|---|---|
| Mar 25, 2023 | $17.8B | $9.9B | $8.0B | 55.2% |
| Jun 17, 2023 | $22.3B | $12.2B | $10.1B | 54.7% |
| Sep 9, 2023 | $23.5B | $12.8B | $10.7B | 54.5% |
| Mar 23, 2024 | $18.3B | $10.0B | $8.2B | 54.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 9, 2023
+0.3 pts
Year-over-year change
Mar 25, 2023
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the prior quarter, leading to a slight gross margin improvement. However, compared to the same quarter last year, cost of revenue grew at a faster pace relative to revenue, causing gross margin to weaken.
Compared to the prior quarter, revenue and gross profit were lower, while cost of revenue also decreased, but gross margin improved slightly. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue increased, but gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as its faster growth compared to the same quarter last year contributed to the gross margin decline.