Molson Coors Beverage Co.’s stock rallied Tuesday even as the broader market sagged, with the beer maker’s adjusted profit jumping 82.3% and beating Wall Street estimates.
Molson Coors
TAP,
On a call with analysts, Molson Coors executives said they’re aware of the Bud Light controversy but did not factor any potential sales boost into their projections.
Molson Coors’ stock is up 7.6% on Tuesday, while AB InBev is down by 1.5% and the S&P 500
SPX,
Molson Coors said its first-quarter net income dropped to $72.5 million, or 33 cents a share, from $151.5 million, or 70 cents a share, in the year-ago quarter.
Adjusted profit rose 82.3% to $116.3 million, or 54 cents a share, well ahead of the Wall Street analyst estimate of 26 cents a share, according to FactSet data.
Revenue increased by 5.9% to $2.35 billion, ahead of the analyst view of $2.23 billion.
Looking ahead, Molson Coors said it continues to expect 2023 sales to exceed 2022 sales by low single digits, but the company issued a word of caution.
“Inherent uncertainties still exist with beer industry softness and the impacts of continued global inflationary cost pressures,” the company said.
Molson Coors CEO Gavin Hattersley said the company’s outlook does not take into account any of the controversy around Dylan Mulvaney, a transgender influencer whose hiring as a spokesperson by Budweiser prompted calls for a Bud Light boycott.
“We haven’t factored in the current situation into the guidance, holding our guidance where it is,” Hattersley said. “Honestly, we can’t say how long the current situation is going to last. Our focus is going to stay on our brands.”
Also read: Trans activist Dylan Mulvaney’s partnership with Maybelline yields a new round of boycott calls
