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Molson Coors Beverage Company stock research

Sep 30, 2023

FY2023 Q3

Molson Coors Beverage (TAP) Gross Margin — Quarter Ended Sep 30, 2023

Gross profit rose while cost of revenue remained unchanged, driving gross margin higher compared to both the previous quarter and the same quarter one year earlier. Revenue was stable sequentially but increased year-over-year, with the margin improvement reflecting the full benefit of the revenue growth flowing through to gross profit.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Gross profit rose while cost of revenue remained unchanged, driving gross margin higher compared to both the previous quarter and the same quarter one year earlier. Revenue was stable sequentially but increased year-over-year, with the margin improvement reflecting the full benefit of the revenue growth flowing through to gross profit.

  • The strongest observable margin driver is the leverage from revenue growth combined with stable cost of revenue. Gross profit increased in line with the revenue increase, with no corresponding rise in cost of revenue.
  • Compared to the previous quarter, revenue was level while gross profit was higher, resulting in an improved gross margin. Versus the same quarter one year earlier, both revenue and gross profit were higher, with gross margin also higher as cost of revenue did not change.

Gross margin snapshot

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

Gross margin

34.5%

Gross profit

$1.3B

Revenue

$3.9B

Cost of revenue

$2.0B

Quarter-over-quarter change

+3.0 pts

Year-over-year change

+6.5 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%
Jun 30, 2023$3.9B$1.2B$2.0B31.5%
Sep 30, 2023$3.9B$1.3B$2.0B34.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

+3.0 pts

Year-over-year change

Sep 30, 2022

+6.5 pts

What the margin says

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

The strongest observable margin driver is the leverage from revenue growth combined with stable cost of revenue. Gross profit increased in line with the revenue increase, with no corresponding rise in cost of revenue.

Compared to the previous quarter, revenue was level while gross profit was higher, resulting in an improved gross margin. Versus the same quarter one year earlier, both revenue and gross profit were higher, with gross margin also higher as cost of revenue did not change.

Monitor whether cost of revenue remains stable in future quarters, as any increase could pressure gross margin if revenue growth does not keep pace.