US – Molson Coors Beverage Company has registered a net sales increase of 4% in the third quarter of 2022 underpinned by positive net pricing and a favorable sales mix resulting from portfolio premiumization.
Despite the inherent uncertainties that exist in the macroeconomic environment Molson Coors expects its Full-years net sales to hit a mid-single-digit increase versus 2021 on a constant currency basis, an underlying income (loss) before income taxes to be at the lower end of the range.
The company is also expecting its underlying free cash flow to grow to US$1.0 billion, plus or minus 10%, and a Consolidated net interest expense of approximately US$265 million, plus or minus 5%.
The brewer anticipates the impact of continued significant cost inflation, weakening demand in Central and Eastern Europe, and the continued strengthening of the US dollar on its full year’s financial performance.
The owner of Miller Lite and Carling beer recorded a net income of US$216.4 million for the quarter that ended 30 September, compared to US$453 million for the same period last year.
Brand volumes decreased 2.0% primarily due to a 1.5% decline in the Americas as a result of softer industry performance and the continued effects of the Québec labor strike as well as a 3.1% decline in EMEA&APAC.
However, net sales per hectoliter on a brand volume basis in constant currency increased by 9.2%, primarily due to positive net pricing and a favorable sales mix resulting from portfolio premiumization.
Geographically, in the Americas segment, net sales increased 6.8% on a reported basis and increased 7.4% in constant currency, primarily due to positive net pricing and a favorable sales mix, partially offset by a decrease in financial volumes.
EMEA&APAC Segment’s net sales decreased 6.4% on a reported basis and increased 9.6% in constant currency, primarily due to higher financial volumes, positive net pricing, and a favorable sales mix.
Gavin Hattersley, Molson Coors CEO, said: “We are proud of our top-line performance in the quarter. Our net sales revenue grew for the sixth consecutive quarter, and through the third quarter of this year, our global net sales revenue outpaced 2019 levels in constant currency.”
“What’s more, our ability to generate sustained top-line growth translated into strong industry share performance across every one of our major markets globally. Between the strength of our portfolio and the pillars of our ‘Revitalization Plan’ at work, we have made significant strides in turning around our business and we believe it well positioned us for the road ahead”.
In September, Molson Coors signaled a shift beyond beer to seltzers, whiskey, and cannabis drinks in a bid to stay profitable amid speculation of the collapsing beer market, especially in Canada.
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