GOLDEN, Colo. & MONTREAL - Molson Coors (NYSE:TAP) Beverage Company (NYSE: TAP) concluded 2023 with robust fourth-quarter earnings, surpassing analyst expectations and signaling a positive outlook for 2024.
The brewer reported a fourth-quarter adjusted EPS of $1.19, topping the analyst estimate of $1.11. Quarterly revenue also slightly exceeded consensus, coming in at $2.79 billion against expectations of $2.78 billion.
The company's net sales saw a 6.1% increase, while adjusted income before income taxes rose 2.1% on a constant currency basis. These figures contributed to a full-year net sales growth of 9.4%, meeting the company's own guidance.
Molson Coors attributes its strong performance to robust demand in the U.S. premium segment and successful brand volumes, with Coors Light and Miller Lite nearing double-digit growth.
President and CEO Gavin Hattersley expressed pride in achieving the company's highest reported top and bottom-line figures in its history, citing strategic investments and a supportive distributor network as key drivers. The stock responded positively to the news, with shares rising 2.4%.
Looking ahead, Molson Coors anticipates a low single-digit increase in net sales for 2024 on a constant currency basis, with a mid single-digit rise in adjusted income before income taxes.
The company's CFO, Tracey Joubert, highlighted the strong foundation set for continued growth, pointing to strategic investments and a strengthened balance sheet as factors bolstering confidence for the year ahead.
InvestingPro Insights
Molson Coors Beverage Company (NYSE: TAP) has demonstrated a strong financial performance in the last quarter of 2023, with a notable increase in net sales and adjusted income. As investors look to the future, key metrics from InvestingPro provide a deeper understanding of the company's valuation and market position.
InvestingPro Data indicates a market capitalization of $13.39 billion, reflecting the company's substantial presence in the beverage industry. Despite a relatively high P/E ratio of 51.55, the adjusted P/E ratio for the last twelve months as of Q3 2023 stands at a more moderate 16.94. This adjustment suggests a more favorable earnings outlook, potentially justifying the current valuation for investors seeking long-term growth.
Revenue growth remains a strong point for Molson Coors, with a 7.95% increase over the last twelve months as of Q3 2023. This aligns with the company's reported full-year net sales growth and underscores its ability to expand revenue streams effectively.
InvestingPro Tips highlight that Molson Coors has raised its dividend for 3 consecutive years and has maintained dividend payments for 49 consecutive years, which may appeal to income-focused investors. With a dividend yield of 2.64% as of the latest data, the company offers a competitive return in the form of regular dividend payments.
Moreover, the company's net income is expected to grow this year, according to analysts' predictions. This projection, combined with the company's history of profitability over the last twelve months, provides a positive signal for investors considering the stock's future performance.
For those seeking more in-depth analysis and additional InvestingPro Tips, Molson Coors has a total of 7 tips available on InvestingPro. Visit https://www.investing.com/pro/TAP for further insights and use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment strategy with a wealth of expert data and analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.