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Molson Coors Beverage Company stock research

Dec 31, 2023

FY2023 Q4

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

Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened from the prior quarter but improved relative to the same quarter one year earlier.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also declined. Gross margin weakened from the prior quarter but improved relative to the same quarter one year earlier.

  • The gross margin improved compared to the same quarter last year, driven by a proportionally larger decline in cost of revenue relative to the change in revenue. The sequential weakening from the prior quarter reflects a more balanced decline in both revenue and cost of revenue.
  • Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.

Gross margin snapshot

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

Gross margin

31.0%

Gross profit

$1.0B

Revenue

$3.3B

Cost of revenue

$1.8B

Quarter-over-quarter change

-3.5 pts

Year-over-year change

+1.6 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%
Dec 31, 2023$3.3B$1.0B$1.8B31.0%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-3.5 pts

Year-over-year change

Dec 31, 2022

+1.6 pts

What the margin says

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

The gross margin improved compared to the same quarter last year, driven by a proportionally larger decline in cost of revenue relative to the change in revenue. The sequential weakening from the prior quarter reflects a more balanced decline in both revenue and cost of revenue.

Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.

Monitor the trajectory of cost of revenue relative to revenue, as the margin improvement over last year was supported by a favorable shift in that relationship.