Molson Coors shares surge after financial results beat

Shares of Molson Coors Beverage Company (TAP) rose more than 5% Tuesday after the brewing giant reported better-than-expected second-quarter sales and earnings. The company said net price growth and a positive sales mix helped boost its results.

The beverage giant reported second-quarter net sales of $3.25 billion, down slightly from a year ago but well above Visible Alpha’s consensus estimate of $3.19 billion. Adjusted diluted earnings per share (EPS) rose nearly 8% from a year earlier to $1.92, beating analysts’ forecasts of $1.71.

Progress on Molson Coors’ Acceleration Plan

Molson Coors executives said the strong results were a sign of progress on the company’s strategic initiatives and execution of its “Acceleration Plan.” The company’s acceleration plan, launched in October 2023, includes increasing revenue from core brands while seeking to “aggressively premiumize its portfolio.”

The company said its quarterly results reflected a negative impact from foreign currencies and a decline in contract brewing volumes, with one contract brewing contract scheduled to be completed by the end of 2024. However, Molson Coors said its current strategy provides the flexibility to adapt to changing conditions in its markets.

“From our strong revenue management platform, to our incentive and innovation plans, to our ongoing investments to drive efficiencies and cost savings, these levers help us navigate a variety of market circumstances,” said Tracey Joubert, Molson Coors’ chief financial officer.

Molson Coors shares ended Tuesday up 5.4% to $53.90 on the news, although even including Tuesday’s gains, the company is down about 12% year to date.