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Molson Coors Beverage Company stock research

Mar 31, 2023

FY2023 Q1

Molson Coors Beverage (TAP) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year. Cost of revenue was lower than the prior quarter but higher than a year ago, resulting in a gross margin that weakened from both comparison periods.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year. Cost of revenue was lower than the prior quarter but higher than a year ago, resulting in a gross margin that weakened from both comparison periods.

  • The gross margin declined from both the immediately preceding quarter and the same quarter one year earlier, driven by a proportionally larger decrease in gross profit relative to revenue. The strongest observable driver is the relationship between cost of revenue and revenue, as cost of revenue fell less than revenue sequentially and rose year over year while revenue increased only modestly.
  • Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened. Compared to the same quarter last year, revenue was higher, gross profit was lower, cost of revenue was higher, and gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

27.8%

Gross profit

$770.7M

Revenue

$2.8B

Cost of revenue

$1.6B

Quarter-over-quarter change

n/a

Year-over-year change

-7.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$2.8B$770.7M$1.6B27.8%

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 31, 2022

-7.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin declined from both the immediately preceding quarter and the same quarter one year earlier, driven by a proportionally larger decrease in gross profit relative to revenue. The strongest observable driver is the relationship between cost of revenue and revenue, as cost of revenue fell less than revenue sequentially and rose year over year while revenue increased only modestly.

Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was lower, and gross margin weakened. Compared to the same quarter last year, revenue was higher, gross profit was lower, cost of revenue was higher, and gross margin weakened.

Monitor the trajectory of cost of revenue relative to revenue, as its slower decline sequentially and increase year over year compressed gross margin.