Molson Coors Beverage Company Reports 2022 Second Quarter Results

Molson Coors Beverage Company Reports 2022 Second Quarter Results

From Molson Coors :

 

Molson Coors Delivers Fifth Consecutive Quarter of Top-Line Growth on a Constant Currency Basis zzubreebym

Successes Against the Revitalization Plan Drive Favorable Shifts to Product Portfolio and Strong Global Core Brands Performance

Company Reaffirms 2022 Guidance for Top and Bottom-Line Growth, Continuing to Deliver on its Revitalization Plan and Manage Costs

GOLDEN, Colo. & MONTRÉAL--(BUSINESS WIRE)-- Molson Coors Beverage Company ("MCBC") (NYSE: TAP, TAP.A; TSX: TPX.A, TPX.B) today reported results for the 2022 second quarter.

2022 SECOND QUARTER FINANCIAL HIGHLIGHTS

  • Net sales decreased 0.6% reported and increased 2.2% in constant currency, as the impact of positive net pricing and favorable sales mix more than offset lower financial volumes.
  • Net sales per hectoliter on a brand volume basis in constant currency increased 7.1%, primarily due to positive net pricing and favorable brand and channel mix resulting from portfolio premiumization and fewer on-premise channel restrictions.
  • U.S. GAAP income before income taxes of $54.9 million declined 89.5% reported and 88.9% in constant currency.
  • Underlying (Non-GAAP) income before income taxes of $328.1 million declined 24.3% reported and 22.8% in constant currency.
  • U.S. GAAP net income attributable to MCBC of $47.3 million, $0.22 per share on a diluted basis. Non-GAAP diluted earnings per share ("EPS") of $1.19 decreased $0.39 per share.

CEO AND CFO PERSPECTIVES

Molson Coors again delivered against its revitalization plan on a global basis in the second quarter of 2022. The Company grew dollar share in the U.S. in the 13-week quarter, for the first time in over a decade. In the second quarter, Coors Light, Miller Lite and Coors Banquet combined to grow total industry share in the U.S. driven by distinctive brand positionings and more effective marketing. In each of our major markets, Molson Coors has core brands gaining share of the beer industry. In Canada, Molson Canadian grew share of the total beer industry for the first time in eight years. In the U.K., Carling, the largest beer brand in the U.K., managed to further solidify its number one position in the total market and national champion brands in Central and Eastern Europe grew share in the majority of markets.

Molson Coors is changing the shape of its product portfolio, increasing its concentration in growth areas while continuing to offer strong core brands in all segments of the market. Net sales of the Company’s U.S. above premium portfolio is now higher than that of its U.S. economy portfolio. That trend has been driven by the rapid growth of its hard seltzers, the strong launch of Simply Spiked Lemonade, and Blue Moon and Peroni’s continued rise coming out of the pandemic. The Company also maintained the strength of its economy portfolio, which has benefited from improved focus and efficiency following the SKU de-prioritization which started in the second quarter last year.

Gavin Hattersley, President and Chief Executive Officer Statement:

“After growing the top-line for the first time in a decade last year, we have now generated net sales growth for five straight quarters for the first time in over a decade on a constant currency basis. On an aggregate basis, we outpaced the industry in our three largest markets and continued to grow the top line globally in the quarter. We believe we have the portfolio to compete and win across all segments and a strong backstop in challenging economic times. This is our Revitalization Plan at work, and I am incredibly proud of our teams around the world who are working to deliver these results.”

Tracey Joubert, Chief Financial Officer Statement:

“We delivered another quarter of top-line growth on a constant currency basis and achieved income before income tax at the favorable end of our anticipated range, all while continuing to invest in our business, reduce net debt and return cash to shareholders. We also did this while navigating global inflationary pressures, a strike at our Montreal/Longueuil, Québec brewery and distribution centers and the cycling of a strong shipment quarter in the prior year period. Our performance and agility demonstrate our successes against our Revitalization Plan and provide us the confidence to reaffirm our guidance for mid-single digit top-line and high single digit bottom-line growth for the year.”

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