Molson Coors Beverage Reports Strong Q2 Results, Reaffirms FY21 Guidance

Molson Coors Beverage Co TAP reported second-quarter FY21 net sales growth of 17.4% year-on-year, to $2.94 billion, beating the analyst consensus of $2.81 billion.
Financial volume rose 5.5% due to improving levels of on-premise re-openings, higher above premium and core brand volumes, and favorable shipment timing in the U.S., partially offset by lower economy brand volumes.
Net sales grew 10.1% in North America and 69.5% in Europe. Financial volume increased 1.9% in North America and 17.8% in Europe.
Gross profit rose 21.5% Y/Y to $1.3 billion. The operating margin was 19.8%, and operating income for the quarter rose 26.8% to $580.8 million.
Underlying EBITDA rose 0.8% Y/Y to $697.8 million.
EPS of $1.58 beat the analyst consensus of $1.33.
The company held $1.3 billion in cash and equivalents as of June 30, 2021. Net debt at the end of the quarter amounted to $6.9 billion.
"We've reached the point where the investments, partnerships, and product launches that were byproducts of the revitalization plan are now bearing results, and we plan to put our foot even more firmly on the gas pedal as we drive towards sustainable top- and bottom-line growth for this business," said CEO Gavin Hattersley.
Outlook: Molson reaffirmed its 2021 financial guidance for net sales growth in mid-single-digit and Underlying EBITDA to be flat compared to 2020 on a constant currency basis.
Price action: TAP shares are trading higher by 0.36% at $49.71 on the last check Thursday.

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