By Scott Kanowsky
Investing.com -- Molson Coors Brewing Co (NYSE:TAP) reported better-than-expected profit in the fourth quarter, as the brewer was boosted by higher pricing that helped offset a downturn in volumes and input cost inflation.
The Chicago-based maker of Carling and Miller Lite posted a 52.5% uptick in underlying net income for the three months to the end of December to $281.9 million, translating to diluted earnings per share of $1.30. Bloomberg consensus estimates had seen the EPS figure coming in at $1.07.
Undergirding the increase were net sales, which grew by 3.8% in constant currency thanks to positive pricing that countered inflationary pressures and a "favorable sales mix" linked to a refocusing of its brand portfolio on premium products. However, global volumes dropped by 5.2%, with the group's operations in the Americas region particularly impacted by the recent price hikes.
Demand in Europe was also hit by the war in Ukraine, Molson Coors said.
“We are proud of our accomplishments in 2022 particularly given the challenging inflationary and operating environment," said Chief Financial Officer Tracey Joubert in a statement. "While we expect these challenges to continue to impact us and our industry in 2023, we are issuing guidance for the year that anticipates continued growth while investing prudently in the long term health of the business and returning cash to shareholders."
The company projects that current-year net sales and underlying pre-tax income will inch up in the low single digits versus 2022. Meanwhile, capital spending is seen at $700M, while underlying free cash flow is at $1B.
Shares in Molson Coors rose in pre-market trading on Tuesday.