Molson Coors Beverage Q3 EPS Miss Estimates As Inflation Threatens

Molson Coors Beverage Co TAP reported third-quarter FY22 sales growth of 4% year-on-year to $2.94 billion, beating the consensus of $2.88 billion.
Net sales from the Americas segment rose 6.8% Y/Y primarily due to positive net pricing and favorable sales mix, partially offset by a decrease in financial volumes.
Net sales from EMEA & APAC decreased 6.4% Y/Y, primarily due to higher financial volumes, positive net pricing and favorable sales mix.
Underlying Cost of goods sold (COGS) per hectoliter increased 12% in constant currency.
Gross profit decreased 17.6% Y/Y to $983.7 million. Operating income for the quarter fell 37.9% to $330.1 million.
Molson Coors Beverage held $525.2 million in cash and equivalents as of September 30, 2022.
Cash provided by operating activities for nine months totaled $1.1 billion with Underlying free cash flow of $597.4 million.
Non-GAAP EPS of $1.32 missed the analyst consensus estimate of $1.37.
Outlook: TAP continues to expect FY22 sales growth in the mid-single-digit on a constant currency basis.
“While we are proud of our ability to navigate the cost environment, global inflationary pressures continue to be a headwind," said CFO Tracey Joubert.
Price Action: TAP shares traded lower by 5.89% at $47.46 on the last check Tuesday.
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