Molson Coors Beverage Co stock shot up after the brewer reported first-quarter financial results that saw it handily beating Wall Street revenue and profit estimates on the back of steady price hikes, which didn’t dent demand for its popular beer brands.
For the period ending March 31, 2023, the Golden, Colorado-based beer maker reported earnings of $0.54 per share on revenue of $2.8 billion. The consensus earnings estimate was $0.26 per share on revenue of $2.2 billion.
Investors reacted positively to the news, sending Molson Coors shares up 8.2% to $65.44 in afternoon trading on the New York Stock Exchange.
Molson Coors noted that revenue grew 5% on a year-over-year basis as net sales per hectoliter increased 6.1% reported and 8.4% in constant currency terms, mainly due to positive net pricing and a favorable sales mix driven by its strong premium branding.
“These results also reaffirm our belief that we’ve laid the right groundwork to continue growing sustainably in 2023 and in the future. We’ve delivered our eighth consecutive quarter of top-line growth and increased our bottom-line on an underlying and constant currency basis by high double digits,” Molson Coors CEO Gavin Hattersley said in a statement.
The company reaffirmed its 2023 full-year guidance citing continued growth while navigating global inflationary pressures.
“While we remain mindful of the global macro-economic environment and beer industry softness, our 1Q performance coupled with the strong foundation we have laid over the last three years, provide us the confidence to reaffirm our 2023 annual guidance,” said Molson Coors CFO Tracey Joubert.
The company said it continues to expect 2023 revenue of approximately $10.97 billion. The current consensus revenue estimate is $10.96 billion for the year ending December 31, 2023.
Molson Coors’ portfolio includes core brands like Carling, Coors Light, Molson Canadian & Staropramen, as well as specialty beers such as Blue Moon, Creemore Springs, Cobra & Sharp's Doom Bar.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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