Molson Coors ( NYSE: TAP ) shares tumbled on Tuesday after management offered a cloudy outlook for the full-year.
For the second quarter, the brewer posted adjusted EPS of $1.19 alongside $2.92B in revenue. Both figures came essentially in-line with estimates. The company noted that net sales decreased 0.6% from 2021 while the cost of goods sold increased 32% due to costs inflation on materials, transportation and energy costs as well as unrealized mark-to-market commodity positions. On a GAAP basis, income before income taxes of $54.9M reflected an 89.5% decline from the prior year.
Shares fell 3.54% in premarket trading shortly after the print .
“We delivered another quarter of top-line growth on a constant currency basis and achieved income before income tax at the favorable end of our anticipated range, all while continuing to invest in our business, reduce net debt and return cash to shareholders,” CFO Tracey Joubert said, highlighting the positives in the print. “We also did this while navigating global inflationary pressures, a strike at our Montreal/Longueuil, Québec brewery and distribution centers and the cycling of a strong shipment quarter in the prior year period.”
Still, the company indicated these concerns are likely to continue throughout the year, adding to concerns on the significant cost increases already observed in the second quarter.
“The inherent uncertainties that exist in the macroeconomic environment, including continued significant cost inflation and the ongoing coronavirus pandemic could impact our financial performance,” a company statement read.
Net sales are anticipated to mark a mid single-digit increase versus 2021 while a high single-digit increase in underlying income is expected.
Read more on the earnings expectations for the Colorado-based brewer .
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Molson Coors shares slump on mixed earnings, uncertain outlook