Molson Coors Beverage Company (NYSE:TAP) reported first-quarter FY24 sales growth of 10.7% year-on-year to $2.60 billion, beating the analyst consensus estimate of $2.50 billion.
The revenue increase was driven by higher financial volumes, favorable price and sales mix and favorable foreign currency impacts.
Net sales from the Americas segment increased 10.6% on a reported and constant currency basis.
Net sales from EMEA & APAC segment jumped 10.9%, driven by favorable price and sales mix as well as favorable foreign currency impacts, partially offset by slightly unfavorable financial volumes.
Adjusted EPS of $0.95 beat the analyst consensus estimate of $0.74.
Underlying cost of goods sold (COGS) per hectoliter increased 0.9% in constant currency.
Gross profit climbed 25% Y/Y to $963.5 million. Operating income for the quarter jumped to $314.3 million, with a margin of 10.3%.
Molson Coors Beverage held $458.4 million in cash and equivalents as of March-end. Operating cash flow for the three months totaled $25.4 million.
“Strong America’s volume and favorable net pricing across both business units resulted in double-digit top-line growth while volume leverage and ongoing cost savings drove meaningful margin expansion in the quarter,” said CFO Tracey Joubert.
Outlook: Molson Coors reaffirmed its FY24 net sales outlook at a low single-digit increase versus 2023 on a constant currency basis.
Molson sees FY24 underlying diluted earnings per share: mid single-digit increase compared to 2023.
TAP continues to expect underlying free cash flow of $1.2 billion, plus or minus 10% and capital expenditures of $700 million, plus or minus 5%.
Price Action: TAP shares traded lower by 7.57% at $58.75 at the last check Tuesday.
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