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Key Takeaways
- Brewing giant Molson Coors topped quarterly revenue and earnings expectations, boosted by an increase in net pricing and favorable sales mix.
- The company said the results demonstrated progress on its strategic initiatives, including its “Acceleration Plan.”
- Molson Coors shares added more than 5% Tuesday following the earnings release, though they remained in negative territory for 2024.
Shares of Molson Coors Beverage Company (TAP) jumped over 5% Tuesday after the brewing giant reported better-than-expected sales and profits for the second quarter. The company said an increase in net pricing and positive sales mix boosted its performance.
The beverage behemoth posted second-quarter net sales of $3.25 billion, down slightly from a year ago but well ahead of the $3.19 billion consensus estimate compiled by Visible Alpha. Adjusted diluted earnings per share (EPS) grew almost 8% from a year ago to $1.92, edging out analysts’ forecasts calling for $1.71.
Progress in Molson Coors’ ‘Acceleration Plan’
Executives at Molson Coors stressed that the strong results are a sign of progress on the company’s strategic initiatives and execution of its “Acceleration Plan.” Launched in October 2023, the firm’s Acceleration Plan involves boosting revenue from core brands while aiming to “aggressively premiumize its portfolio.”
The company said its quarterly results reflected a negative foreign currency impact and a decline in contract brewing volumes, with one contract brewing arrangement set to wind down by the end of 2024. However, Molson Coors said its current strategy provides flexibility to adapt to shifting conditions across its markets.
“From our robust revenue management platform, to our premiumization and innovation plans, to our continued investments to drive efficiencies and cost savings, these levers help us to navigate various market circumstances,” said Molson Coors CFO Tracey Joubert.
Molson Coors shares closed 5.4% higher at $53.90 Tuesday following the news, though even with Tuesday’s gains, they’ve lost about 12% since the start of the year.