Molson Coors Beverage Company ( TAP/A ) reported third-quarter adjusted earnings per share of $1.80, beating the street view of $1.67.

Quarterly sales of $3.04 billion missed the analyst consensus of $3.13 billion. Net sales decreased 7.8%, driven by lower financial volumes, partially offset by favorable price and sales mix.

Financial volumes dropped 12.3%, mainly due to lower shipments, including reduced contract brewing volumes in the Americas. Brand volumes fell 4.4%, with a 5.4% decline in the Americas and a 1.8% decrease in EMEA & APAC.

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Net sales benefited from a 4.5% positive price and sales mix impact, driven by higher net pricing and a favorable sales mix, including the impact of reduced contract brewing volumes in the U.S.

Total debt as of September 30 was $6.2 billion, and cash and equivalents totaled $1.02 billion, resulting in a net debt of $5.219 billion.

In a separate release, Molson Coors ( TAP/A ) said it is acquiring a majority stake in ZOA, the energy brand co-founded by Dwayne Johnson, and will now lead its marketing and sales efforts. The company expects this move to drive significant growth for ZOA.

“We’re building a winning portfolio that offers consumers choices across a wide range of occasions, and non-alc is a key part of that strategy,” said Molson Coors Chief Commercial Officer Michelle St. Jacques.

Molson Coors ( TAP/A ) and ZOA first struck a partnership when the brand launched in 2021, and Molson Coors ( TAP/A ) increased its stake in ZOA last September while also assuming a presence on ZOA’s Board of Directors.

Outlook: Molson Coors ( TAP/A ) now expects net sales to decline by about 1% in 2024 compared to 2023 on a constant currency basis. This is a revision from their previous forecast of a low single-digit increase, due to weaker performance in the U.S. beer industry during the peak selling season.

The company now expects its 2024 underlying diluted earnings per share to be at the high end of the prior outlook range of a mid-single-digit increase compared to 2023.

Price Action: TAP shares are trading higher by 0.68% to $56.91 at last check Thursday.

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