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Jun 30, 2023

Molson Coors Q2 2023 Earnings Report

Molson Coors delivered strong second quarter results, achieving top-line growth and increased income before income taxes.

Key Takeaways

Molson Coors reported an 11.8% increase in net sales and a 703% increase in income before income taxes for the second quarter of 2023. The company raised its full-year financial guidance, reflecting confidence in its core brands and strategic initiatives.

Net sales increased by 11.8% due to positive net pricing, favorable sales mix, and higher financial volumes.

U.S. GAAP income before income taxes increased by 703%.

Underlying income before income taxes improved by 52.6% in constant currency.

The company raised its 2023 full year key financial guidance.

Total Revenue
$3.27B
Previous year: $2.92B
+11.8%
EPS
$1.78
Previous year: $1.19
+49.6%
Total Financial Volume
23.39
Previous year: 22.74
+2.8%

Molson Coors

Molson Coors

Molson Coors Revenue by Segment

Forward Guidance

Molson Coors raised its 2023 key financial guidance metrics, expecting high single-digit increase in net sales and a 23%-26% increase in underlying income before income taxes.

Positive Outlook

  • High single-digit increase in net sales versus 2022 on a constant currency basis.
  • Underlying income (loss) before income taxes: 23%-26% increase compared to 2022 on a constant currency basis.
  • Underlying free cash flow: $1.2 billion, plus or minus 10%.
  • Consolidated net interest expense: $225 million, plus or minus 5%.
  • Underlying effective tax rate: in the range of 21% to 23% for 2023.

Challenges Ahead

  • Mindful of the softness in the beer industry
  • Continued caution around the consumer
  • Expectations of cost inflation
  • Limited consumer disposable income
  • Consumer preferences