Brewer Molson Coors has reported a 4.0% increase in net sales to $2.9 billion (7.9% in constant currency) in the third quarter of its financial year, driven by positive net pricing and a favourable sales mix.
However, its underlying net income for the quarter declined by 24.6% year-on-year to $286.8 million.
Gavin Hattersley, president and chief executive officer, commented, "Our net sales revenue grew for the sixth consecutive quarter, and through the third quarter of this year, our global net sales revenue outpaced 2019 levels in constant currency.
"What's more, our ability to generate sustained top-line growth translated into strong industry share performance across every one of our major markets globally. Between the strength of our portfolio and the pillars of our Revitalization Plan at work, we have made significant strides in turning around our business and we believe we are well positioned for the road ahead."
Net sales per hectolitre on a brand volume basis increased 9.2% in constant currency, again boosted by positive net pricing and favourable sales mix resulting from portfolio premiumisation.
Chief financial officer, Tracey Joubert, commented, “While we are proud of our ability to navigate the cost environment, global inflationary pressures continue to be a headwind. 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."
In the EMEA and APAC segments, Molson Coors saw net sales decline by 6.4% on a reported basis and increase by 9.6% in constant currency.
Financial volumes increased 2.0% primarily due to higher brand and factored volumes in Western Europe, partially offset by consumer inflationary pressures across Central and Eastern European countries, the company added.
Brand volumes in the EMEA and APAC declined by 3.1% due to volume declines as a result of the Russia-Ukraine conflict and consumer inflationary pressures across Central and Eastern European countries, partially offset by higher brand volumes in Western Europe.
In the Americas unit, net sales increased 6.8% on a reported basis and increased 7.4% in constant currency.
Financial volumes decreased 1.0% primarily due to lower shipments in Canada, including the continued impact of the Québec labour strike, partially offset by a 1.4% increase in US domestic shipments.
Brand volumes in the region decreased by 1.5% and were primarily driven by an 8.6% decline in Canada and a 0.9% decline in the US, partially offset by 3.5% growth in Latin America driven by growth in Mexico, the drinks giant added.