- Molson Coors Beverage Co TAP shares surged Tuesday morning following its Street-beating Q1 performance. The company reaffirmed its 2023 full-year guidance for continued growth despite global inflationary pressures.
- TAP reported first-quarter FY23 sales growth of 5.9% year-on-year to $2.35 billion, beating the consensus of $2.22 billion.
- Net sales from the Americas segment increased 5.6% reported and 6.5% in constant currency, primarily driven by price and sales mix, partially offset by a decline in financial volume.
- Net sales from EMEA & APAC segment jumped 16.1% in constant currency primarily due to favorable price and sales mix and higher financial volume.
- Underlying cost of goods sold (COGS) per hectoliter increased 7.4% in constant currency.
- Gross profit fell 16.9% Y/Y to $770.7 million. Operating income for the quarter fell 29.5% to $158.2 million with a margin of 5.7%.
- Molson Coors Beverage held $328.2 million in cash and equivalents as of March 31, 2023. Cash provided by operating activities for the quarter totaled $3.4 million.
- Underlying EBITDA for the quarter gained 21.2% to $388.4 million.
- Non-GAAP EPS of $0.54 beat the consensus of $0.26.
- CFO Tracey Joubert stated, "While we remain mindful of the dynamic global macro-economic environment and beer industry softness, our first quarter performance coupled with the strong foundation we have laid over the last three years, provide us confidence to reaffirm our 2023 annual guidance."
- Outlook: TAP continues to expect FY23 net sales to increase in the low single-digit on a constant currency basis.
- The company expects underlying free cash flow of $1.0 billion, plus or minus 10%.
- Also Read: Raise A Glass To Weed-Infused Drinks: Beer Company Chief Lays Out His Vision
- Price Action: TAP shares traded higher by 10% at $66.52 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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