TAP · 8-K · 20260806PR000070

Gross Margin Cost Inflation

MOLSON COORS BEVERAGE CO · 2026-08-06 · Importance 62 · Surprise 58 · In source text

Second-quarter cost of goods sold increased 6.0% to $2,033.2 million, causing gross profit to decline to $1,063.3 million from $1,281.9 million. COGS per hectoliter increased 12.1% reported, driven by $98.0 million of unfavorable unrealized commodity-derivative mark-to-market changes, materials, logistics and manufacturing inflation, and approximately $40 million of unfavorable Midwest Premium pricing. Premiumization created unfavorable product mix and volume deleverage in COGS, while cost-savings initiatives partly offset the cost increases. Underlying COGS per hectoliter increased 6.3% in constant currency.

Key facts

• In COGS, the impact of Midwest Premium is expected to exceed approximately $130 million for the full year 2026. source
• COGS per hectoliter increased 12.1% on a reported basis for the three months ended June 30, 2026, primarily due to unrealized mark-to-market commodity derivative positions of $98.0 million and approximately $40 million unfavorable impact attributable to Midwest Premium pricing. source
• Underlying COGS per hectoliter increased 6.3% in constant currency for the three months ended June 30, 2026, including approximately $40 million unfavorable impact attributable to Midwest Premium pricing. source
• COGS increased 6.0% on a reported basis for the three months ended June 30, 2026. source
• Underlying (Non-GAAP) Cost of goods sold for the three months ended June 30, 2026: $(1,942.2) million source
• Unrealized mark-to-market (gains) losses included as a pre-tax non-GAAP adjustment for the three months ended June 30, 2026: $91.0 million source

Impact estimates