Molson Coors Beverage Company ( TAP/A ) shares are trading higher on Tuesday.

The company reported adjusted earnings per share of $1.92, beating the street view of $1.68. Quarterly net sales of $3.252 billion beat the analyst consensus of $3.181 billion. Net sales decreased 0.4% reported and 0.1% in constant currency.

“In the second quarter of 2024, we essentially held the top line and grew the bottom line 5.2% while cycling the strongest second quarter of U.S. GAAP reported net sales since the 2005 Molson and Coors merger,” CEO and CFO commented.

The company’s results were largely driven by favorable prices and U.S. shipment timing offset by lower contract brewing volumes. 

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Total debt as of June-end was $7.055 billion, and cash and cash equivalents totaled $1.647 billion, resulting in net debt of $5.408 billion and net debt to underlying EBITDA ratio of 2.13x. 

On July 18, 2024, the company declared a dividend of $0.44 per share, payable September 20. The company returned $564 million in cash to shareholders in the first half of the year through both dividends and share repurchase program, which accelerated during the second quarter.

Outlook Reaffirmed: Molson Coors ( TAP/A ) expects a low single-digit increase in sales for 2024 on a constant currency basis.

Underlying income before taxes is anticipated to rise mid-single digits, also on a constant currency basis. Capital expenditures are projected to be around $750 million, with a variance of ±5%.

Price Action: TAP shares are trading higher by 7.21% to $54.82 at last check Tuesday.

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