Molson Coors tops quarterly results on strong beer demand in Europe, Asia
Aug 6 (Reuters) -Molson Coors TAP.N beat Wall Street expectations for second-quarter sales and profit on Tuesday, driven by strong demand for its premium Coors Light and Miller Lite beers in the European and Asian regions.
Shares of the beer maker rose 2.7% in premarket trading.
Molson Coors, just like Corona beer maker Constellation Brands STZ.N, is seeing that customers are more than willing to spend on their favorite beers since they have started to cut back spending on wine and spirits to save dollars.
The Europe, Middle East and Africa region along with its Asia-Pacific region saw a 2% increase in volumes during the second quarter while Americas brand volumes fell 7.3% mainly due to lower sales of its premium brands, which became more expensive following attempts to pass on rising costs to customers.
The company's second-quarter net sales fell 0.4% to $3.25 billion, compared to analysts' expectations of $3.18 billion, according to LSEG estimates.
Molson Coors' underlying profit came in at $1.92 per share, beating estimates of $1.68 apiece.
The company continues to expect full-year 2024 net sales to rise in the low single-digit percentage range and underlying profit to grow in the mid-single-digit percentage range.
Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Alan Barona
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