Molson Coors Beverage Company ( NYSE: TAP ) shares ticked nearly 7% lower on Tuesday after posting profits that fell short of expectations.
The brewer notched $1.32 in earnings per share for the third quarter, coming up $0.03 short of expectations despite a narrow beat on sales estimates driven by global pricing actions. However, those actions did not exceed analyst expectations as input costs continued to climb. Cost of goods sold per hectoliter increased 20% from the prior year quarter due to commodity, transportation, and energy costs.
“We delivered another quarter of top-line and underlying bottom-line growth on a constant currency basis, while continuing to invest in our business, reduce net debt and return cash to shareholders. While we are proud of our ability to navigate the cost environment, global inflationary pressures continue to be a headwind,” CFO Tracey Joubert explained. “As a result, we are reaffirming our key financial guidance for 2022 but expect underlying constant currency based income before taxes growth to be at the lower end of our high-single digit range."
Net sales for the full year are expected to reflect a mid single-digit increase versus 2021 on a constant currency basis while net income is projected to increase in the high single-digit range. Weakness in Central and Eastern Europe is anticipated to leave growth at the lower end of that guidance.
Shares of the alcoholic beverage giant fell 6.39% shortly after Tuesday’s market open.
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Molson Coors’ mixed quarterly report leads shares lower