Molson Coors Beverage Co (NYSE:TAP) reported second-quarter FY23 sales growth of 11.8% year-on-year to $3.27 billion, missing the analyst consensus of $3.29 billion.
The sales increase was primarily due to positive net pricing, favorable sales mix, and higher financial volumes.
Net sales from the Americas segment increased 10.7% reported, and 11.5% in constant currency.
Net sales from EMEA & APAC segment jumped 16.3%, driven by favorable price and sales mix and favorable foreign currency impacts, partially offset by a decline in financial volumes.
Underlying cost of goods sold (COGS) per hectoliter increased 5.9% in constant currency.
Gross profit climbed 48.6% Y/Y to $1.218 billion. Operating income for the quarter was $488.5 million, with a margin of 12.8%.
Molson Coors Beverage held $960.9 million in cash and equivalents as of June 30, 2023. Cash provided by operating activities for six months totaled $894.4 million.
Underlying EBITDA for the quarter gained 28% to $725.2 million.
Non-GAAP EPS of $1.78 beat the consensus of $1.59.
Outlook: Molson Coors sees FY23 net sales growth in high single-digit versus 2022 on a constant currency basis from the previous guidance of a low single-digit increase.
It expects underlying free cash flow of $1.2 billion, plus or minus 10%, versus previous guidance of $1.0 billion, plus or minus 10%.
Price Action: TAP shares traded lower by 5.39% at $66.01 in premarket on the last check Tuesday.
