Molson Coors beats quarterly estimates after beer demand rebounds in Americas

Reuters
13 Feb
Molson Coors beats quarterly estimates after beer demand rebounds in Americas

Feb 13 (Reuters) - Molson Coors TAP.N beat fourth-quarter sales and profit estimates on Thursday, helped by recovering demand for its beer brands including Coors Light and Miller Lite in the Americas.

Shares of the company were up about 5% in premarket trading.

The company saw sales recover in certain regions, as consumers continued to lean on their favorite beers after cutting back on expensive wines and spirits.

Net sales in its Americas segment were down 2.6% in quarter ended December 31, after falling 11% in the third quarter.

The improvement in sales in the Americas, a biggest revenue generating region, was driven by a consecutive rise in brand volumes in Canada.

Molson Coors, similar to its peer Constellation Brands STZ.N, has been ramping up prices to counter lingering input costs such as raw materials.

That, along with Molson Coors' efforts to lower its marketing expenses, helped it in posting underlying earnings per share of $1.30, compared with analysts' estimates of $1.13 per share, as per data compiled by LSEG.

Its quarterly net sales came in at $2.74 billion, compared with analysts' estimates of $2.70 billion.

The company expects annual net sales to be up in low single-digit, compared with analysts' estimate of a 0.55% decline.

The company said that its outlook does not reflect impacts of any trade policy activities or tariffs by the U.S. and potential retaliatory actions by other countries.

President Donald Trump's import tariffs on goods from Mexico, Canada and China have alcohol firms scrambling to take up measures to try and mitigate impact from the potential trade war.

Last month, Molson Coors bought an 8.5% stake in a $88 million deal to get exclusive rights to market cocktail mixers and tonic water of British company Fevertree Drinks FEVR.L, as the beer maker looks to expand its non-alcoholic drinks.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Maju Samuel)

((AnujaBharat.Mistry@thomsonreuters.com;))

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