Molson Coors Beverage Company (NYSE:TAP) shares fell after its second quarter revenue fell short of expectations, despite the Canadian-American beverage and brewing company reporting its single strongest quarter of sales since the merger of Molson and Coors in 2005.
Molson Coors shares fell 5.5% to US$65.90 late morning on Tuesday.
While its 2Q revenue rose 11.8% year-over-year to $3.27 billion, it fell short of Wall Street analysts’ expectation of $3.29 billion.
Earnings per share of $1.78, however, topped expectations of $1.64.
The company said it was raising its full-year sales guidance to a high single-digit increase over 2022, compared to its previous guidance of a low single-digit increase, based on the strength of its core brands in the United States while mindful of softness in the beer industry and cautious around consumer spending.
It expects its profit before income tax to be 23% to 26% higher than it was in 2022 on a consistent currency basis, up from its previous guidance of a low single-digit increase.
“We are proud to report the best quarter of U.S. GAAP reported net sales since the merger of Molson and Coors in 2005, but make no mistake: this is not simply a measure of the three months in the second quarter,” Molson Coors CEO Gavin Hattersley said in a statement.
“These results are a measure of the past three years and a long-term strategy that has made our brands, our supply chain and our breweries demonstrably stronger.”
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