TAP · 10-Q · 2026Q2 · Full report
Gross Margin Drivers
MOLSON COORS BEVERAGE CO (TAP, TAP-A) · 2026-08-06 · Importance 45 · Surprise 40 · No source text
Gross profit decreased 17.1% to $1,063.3 million in the second quarter and 8.1% to $1,960.5 million for the first six months of 2026. Cost of goods sold increased 6.0% in the quarter and 3.4% year to date despite lower financial volume, while cost of goods sold per hectoliter rose 12.1% and 8.1%, respectively. Second-quarter cost pressure included a $98.0 million unfavorable change in unrealized commodity derivative positions, approximately $40 million of Midwest Premium costs, materials, logistics and manufacturing inflation, unfavorable premiumization mix and volume deleverage. Six-month cost pressure included $27.5 million of unfavorable commodity derivative changes and approximately $70 million of Midwest Premium costs, partially offset by cost savings initiatives.
Key facts
- Cost of goods sold per hectoliter increased 12.1% for the three months ended June 30, 2026 versus prior year, primarily due to $98.0 million unfavorable unrealized mark-to-market commodity derivative positions and approximately $40 million unfavorable impact from Midwest Premium pricing. source
- Gross profit for the three months ended June 30, 2026: $1,063.3 million, decreased 17.1% versus prior year. source
- Cost of goods sold for the three months ended June 30, 2026: $2,033.2 million, increased 6.0% versus prior year. source
- Cost of goods sold for the six months ended June 30, 2026: $3,487.1 million, increased 3.4% versus prior year. source
- Gross profit for the six months ended June 30, 2026: $1,960.5 million, decreased 8.1% versus prior year. source
- Cost of goods sold per hectoliter increased 8.1% for the six months ended June 30, 2026 versus prior year, primarily due to approximately $70 million unfavorable impact attributable to Midwest Premium pricing and $27.5 million unfavorable unrealized mark-to-market commodity derivative positions. source
- Unallocated cost of goods sold for the three months ended June 30, 2026: $(91.0) million and gross profit (loss) for Unallocated was $(91.0) million. source
- Unrealized losses on commodity derivatives for the three months ended June 30, 2026 were primarily due to unrealized losses on U.S. aluminum swaps and options, U.S. Midwest Premium swaps and U.S. diesel swaps. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -4.8% | Gross profit for the six months ended June 30, 2026: $1,960.5 million, decreased 8.1% versus prior year. |
| operating_income | negative | realized | -3.2% | Cost of goods sold for the three months ended June 30, 2026: $2,033.2 million, increased 6.0% versus prior year. |
| operating_income | negative | realized | -2.7% | Cost of goods sold per hectoliter increased 12.1% for the three months ended June 30, 2026 versus prior year, primarily due to $98.0… |
| operating_income | negative | realized | -1.9% | Cost of goods sold per hectoliter increased 8.1% for the six months ended June 30, 2026 versus prior year, primarily due to approximately… |
| operating_income | negative | realized | -1.1% | Cost of goods sold per hectoliter increased 12.1% for the three months ended June 30, 2026 versus prior year, primarily due to $98.0… |
| operating_income | negative | realized | -0.8% | Cost of goods sold per hectoliter increased 8.1% for the six months ended June 30, 2026 versus prior year, primarily due to approximately… |