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Molson Coors Beverage Company stock research

Sep 30, 2024

FY2024 Q3

Molson Coors Beverage (TAP) Gross Margin — Quarter Ended Sep 30, 2024

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly versus both periods, reflecting a proportionally smaller gross profit relative to revenue.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly versus both periods, reflecting a proportionally smaller gross profit relative to revenue.

  • The decline in gross profit outpaced the decline in revenue, leading to a lower gross margin. Cost of revenue decreased but not enough to offset the revenue drop, compressing margin.
  • Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, all three metrics were also lower, with gross margin slightly weaker.

Gross margin snapshot

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

Gross margin

33.4%

Gross profit

$1.2B

Revenue

$3.6B

Cost of revenue

$1.8B

Quarter-over-quarter change

-1.3 pts

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.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$3.3B$1.0B$1.8B31.0%
Mar 31, 2024$3.0B$963.5M$1.6B31.6%
Jun 30, 2024$3.8B$1.3B$1.9B34.6%
Sep 30, 2024$3.6B$1.2B$1.8B33.4%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

-1.3 pts

Year-over-year change

Sep 30, 2023

-1.1 pts

What the margin says

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

The decline in gross profit outpaced the decline in revenue, leading to a lower gross margin. Cost of revenue decreased but not enough to offset the revenue drop, compressing margin.

Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, all three metrics were also lower, with gross margin slightly weaker.

Monitor the trajectory of revenue relative to cost of revenue to assess whether gross margin can stabilize.