Molson Coors Beverage Q3 Results Beat View

(RTTNews) - Molson Coors Beverage Co. (TAP, TPX.TO) reported that its third-quarter net income attributable to the company was $342.8 million or $1.58 per share, compared to a loss of $402.8 million or $1.86 per share in the prior year.

U.S. GAAP pretax income was $450.4 million compared to a loss of $308.6 million in the prior year was driven by lower special charges of about $644 million primarily due to cycling a $668.3 million goodwill impairment charge recognized in North America segment in the third quarter of 2019, partially offset by higher current year asset impairment losses in Europe.

Underlying net income was $350.8 million or $1.62 per share, compared to $321.2 million or $1.48 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.02 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter decreased to $2.75 billion from $2.84 billion last year. Analysts expected revenues of $2.65 billion.

Net sales on a reported basis, decreased 1.0% and 0.8% in constant currency due to financial volume declines of 4.0%, reflecting lower brand volume, partially offset by favorable year-over-year shipment timing in the U.S. reducing a year-to-date under-shipment position attributed to aluminum can supply constraints.

North America brand volumes decreased 5.2% due to on-premise outlet restrictions as well as packaging material constraints contributing to declines in the economy and premium segments. In the U.S., brand volumes decreased 5.3% compared to domestic shipment declines of 3.9%.

The company currently expect U.S. domestic shipment trends to be higher than brand volume trends in the fourth quarter as we build distributor inventories for the balance of the year. Canada and Latin America brand volumes declined 4.2% and 4.6%, respectively, in the quarter.

The company said it currently remain unable to provide an updated detailed financial outlook citing the ongoing coronavirus pandemic.