What's Going On With Beer Maker Molson Coors Stock Today?

Molson Coors Beverage Co TAP released better-than-expected fourth-quarter 2023 earnings and issued 2024 guidance.

Net sales grew 6.1% Y/Y to $2.79 billion, beating the analyst consensus estimate of $2.77 billion, led by favorable price and sales mix, higher financial volumes, and favorable foreign currency impacts.

Net sales from the Americas segment increased 4.7% Y/Y, led by higher financial volumes and favorable price and sales mix.

Net sales from EMEA & APAC segment rose 12.6% Y/Y, driven by favorable price and sales mix and favorable foreign currency impacts.

The underlying cost of goods sold (COGS) per hectoliter increased by 1.4% in constant currency owing to cost inflation related to materials and manufacturing expenses and an unfavorable mix.

Gross profit rose to $1.033 billion from $923.7 million in the prior quarter. Operating income for the quarter was $199.3 million vs. a loss of $(511.5) million a year ago.

Molson Coors Beverage held $868.9 million in cash and cash equivalents as of December 31, 2023. Operating cash flow for the year totaled $2.08 billion.

Adjusted EPS of $1.19 beat the consensus of $1.12.

Dividend: On February 13, 2024, the company’s Board of Directors declared a quarterly dividend of $0.44 per share, payable on March 15, 2024, to shareholders of record as of March 1, 2024. 

On September 29, 2023, the company’s Board of Directors approved a new share repurchase program authorizing up to an aggregate of $2.0 billion of shares. 

Outlook: Molson Coors expects FY24 net sales to grow in the low single digits Y/Y on constant currencies and underlying EPS to increase in mid-single-digits Y/Y.

The company expects underlying free cash flow of $1.2 billion (plus or minus 10%) and capital expenditures of $750 million (plus or minus 5%) in FY24.

Price Action: TAP shares are down 2.16% at $60.77 on the last check Tuesday.

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