TAP Filings — Molson Coors Beverage Co - FilingSpy
TAP
Molson Coors Beverage Co
A global maker of beers, hard seltzers, and other drinks, Molson Coors brews familiar names like Coors Light, Miller Lite, Carling, Madrí Excepcional, and Vizzy Hard Seltzer, selling them across the Americas and Europe. The company was born from a 2005 "merger of equals" between two family breweries: Canada's Molson, founded in 1786 and North America's oldest brewery, and the Coors brewery, opened by German immigrant Adolph Coors in Golden, Colorado, in 1873 using Rocky Mountain spring water. Fun fact: college students in the early 1980s coined the "Silver Bullet" nickname for Coors Light that the company later embraced.
Gross margin fell 4.8 points to 29.5% as $138M in commodity and aluminum costs reversed prior-quarter gains.
A sharp cost reversal erased the margin gains of the prior quarter. fell 3.6% to $3.60 billion and dropped 46% to $232 million as $98 million in unfavorable commodity swings and $40 million in aluminum costs hit cost of goods sold. The company now carries a heavier cost structure into a softening volume environment, even as it deploys capital into beyond-beer acquisitions.
Key takeaways
contracted 4.8 points to 29.5%, driven by a 12.1% increase in cost of goods sold per hectoliter that included $98 million in unfavorable commodity impacts and $40 million from elevated aluminum pricing.
fell 46.0% to $231.7 million as the decline of 17.1% to $1.06 billion flowed through to the bottom line, with down 43.1% to $331.9 million.
Consolidated declined 3.3% to $3.1 billion on a 5.4% drop in financial volumes, partially offset by 1.8% favorable price and sales mix.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net income fell 46% to $232M as Midwest Premium costs and lower volumes pressured margins despite favorable pricing.
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Consolidated declined 3.3% to $3.1B in Q2, driven by a 5.4% drop in financial volume, partially offset by 1.8% favorable price and sales mix.
income before tax fell 27.5% to $390 million, pressured by a 6.4% U.S. volume decline concentrated in core and value brands and higher material and logistics costs.
income before tax dropped 41.5% to $38 million, reflecting lower U.K. volumes, soft market demand, and cost inflation.
rose to $820 million for the first half of the year, boosted by a $108 million cash settlement from interest rate swaps and lower incentive compensation payments.
The company acquired Atomic Brands, Inc. for $275 million in April 2026, adding the Monaco ready-to-drink cocktail brand to its beyond-beer portfolio.
What changed
The $70.5 million favorable commodity derivative gain that widened Q1 2026 by 1.4 points reversed sharply in Q2, swinging to a $98 million unfavorable impact that drove the 4.8-point gross margin contraction.
The shallower 2.9% decline flagged in Q1 2026 did not stabilize; the decline deepened to 5.4% in Q2, with U.S. weakness concentrated in core and value brands.
The $30 million impact from elevated aluminum pricing flagged in Q1 2026 grew to $40 million in Q2, confirming that aluminum tariff and premium volatility is an escalating cost pressure rather than a one-quarter event.
The company began executing on the debt refinancing flagged in Q1, issuing 2036 USD senior notes and settling the associated forward-starting interest rate swaps for a $108 million cash gain that boosted .
What to watch
Q3 2026 and cost of goods sold per hectoliter to see whether the $98 million unfavorable commodity swing reverses as contracts settle, and whether aluminum costs moderate or persist beyond the $40 million Q2 level.
Q3 2026 financial volumes and core brand pricing to determine whether the 6.4% U.S. volume decline represents a one-quarter deepening or a sustained deterioration after the contract brewing exit.
Execution and terms of the remaining $1.0 billion to $1.9 billion debt refinancing ahead of the July 2026 maturity, and the resulting and profile after the 2036 note issuance.
Integration costs and contribution from the Atomic Brands acquisition, and any further beyond-beer M&A activity that signals the pace and capital commitment of the total-beverage transformation.
fell 17.1% to $1.06B as cost of goods sold per hectoliter surged 12.1%, including $98M in unfavorable commodity impacts and $40M from pricing.
Americas income before tax dropped 27.5% to $390M on a 6.4% volume decline in the U.S., particularly in core and value brands, and higher material and logistics costs.
EMEA&APAC income before tax fell 41.5% to $38M, pressured by lower U.K. volumes, soft market demand, and cost inflation, partly offset by lower restructuring charges.
rose to $820M for the first half, boosted by a $108M cash settlement from interest rate swaps and lower incentive compensation payments.
The company acquired Atomic Brands, Inc. for $275M in April 2026, adding the Monaco ready-to-drink cocktail brand to expand beyond beer.
Quantitative and Qualitative Disclosures About Market Risk
Market risk exposures are unchanged from the Annual Report, with no material changes in the six months ended June 30, 2026.
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The company states there have been no material changes to its market risks or market sensitive instruments from those disclosed in the Annual Report.
Interest rate risk is managed on fixed-rate notes; a hypothetical 1% adverse rate change would reduce by $486.5 million as of June 30, 2026, up from $388.1 million at year-end 2025.
Foreign currency risk arises from foreign-currency-denominated fixed-rate notes and is partially hedged with foreign currency forwards; a 10% adverse FX move would reduce by $143.6 million as of June 30, 2026.
Commodity price risk is hedged using swaps and options; a 10% adverse commodity price change would reduce by $81.9 million as of June 30, 2026.
Forward-starting interest rate swaps outstanding at year-end were settled in conjunction with the issuance of 2036 USD senior notes, leaving none outstanding at June 30, 2026.
Litigation and other disputes For information regarding litigation, other disputes and environmental and regulatory proceedings see Part I.—Item 1. Financial Statements, Note 10, "Commitments and Contingencies."
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Litigation and other disputes
For information regarding litigation, other disputes and environmental and regulatory proceedings see Part I.—Item 1. Financial Statements, Note 10, "Commitments and Contingencies."
In addition to the other information set forth in this report, the factors discussed in Part I.—Item 1A. "Risk Factors" in our Annual Report, which could materially affect our business, financial condition and/or future results, should be carefully considered. There have been no…
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In addition to the other information set forth in this report, the factors discussed in Part I.—Item 1A. "Risk Factors" in our Annual Report, which could materially affect our business, financial condition and/or future results, should be carefully considered. There have been no material changes to the risk factors contained in our Annual Report. The risks described in our Annual Report and herein are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially adversely affect our business, financial condition, cash flows and/or future results.
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