Molson Coors Brewing Company (NYSE:TAP) upped its full-year core profit forecast after its third-quarter financial results topped estimates driven by increased prices and steady demand for its beer brands.
For 3Q, the Coors Lite, Miller Lite, and Molson Canadian-maker’s revenue increased 12.4% year over year from $2.94 billion to $3.3 billion, ahead of estimates of $3.24 billion.
Its earnings per share (EPS) increased 45.5% over the year-ago quarter from $1.32 to $1.92. Analysts had expected EPS of $1.53.
Molson Coors CEO Gavin Hattersley noted that the improvement in the business was not limited to a single market, a couple of brands or one segment of the category.
“We believe these gains are sustainable, and the strength of our brands coupled with the work we are doing gives us confidence we can maintain the gains we have achieved and grow off of them,” Hattersley said in a statement.
For full-year 2023, the company reiterated its sales guidance of a high single-digit increase over 2022 but said it expects its sales to be at the high end of this range.
Analysts, on average, expect Molson Coors’ full-year sales to increase by 9.1% to $11.68 billion.
It raised its underlying income before taxes (core profit) expectation to a range of 32% to 36% from its prior guidance of a 23% to 26% increase over the previous financial year.
The company said its income guidance increase was driven by a healthier-than-previously-anticipated U.S. beer industry, more robust brand volume performance, higher-than-expected pricing mainly in Canada, and lower net interest expense due to higher cash balances generating increased interest income.
After initially making gains in premarket trade, Molson Coors shares slipped 2.4% at US$56.75 late morning on Thursday.
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