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Revitalization Plan Keeps Molson Coors (TAP) on Growth Track
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Molson Coors Beverage Company (TAP - Free Report) has been in a good spot, courtesy of gains from contributions of its revitalization plan, commitment toward innovation and the premiumization of its global portfolio. Strong portfolio performance, strength in both business units and continued momentum in Coors Light and Miller Lite in the United States have been aiding TAP’s performance.
This led to third-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year. The company’s adjusted earnings rose 45.5% year over year. Net sales grew 12.4% year over year and 11% on a constant-currency basis. Sales growth was driven by a favorable price and sales mix, higher financial volume and positive impacts of foreign currency.
Additionally, the company’s business trends and initiatives have been well reflected in its share price. Shares of this Zacks Rank #1 (Strong Buy) company have rallied 17.6% in the past year against the industry’s decline of 7.8%. TAP also fared better than the sector and the S&P 500’s growth of 6.8% and 15.7%, respectively, in the same period.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TAP’s 2023 sales and earnings suggests growth of 9.1% and 28.8%, respectively, from the year-ago numbers.
Molson Coors, one of the largest brewers in the world, is on track with its revitalization plan. The plan is focused on achieving sustainable top and bottom-line growth by streamlining the organization, and reinvesting resources into its brands and capabilities.
The company intends to invest in iconic brands and growth opportunities in the above-premium beer space. It also plans to develop digital competencies for employees, supply-chain-related system capabilities and commercial functions. As part of the plan, it has been expanding in adjacencies and beyond beer without hampering the support for its existing large brands.
To facilitate these investments, Molson Coors plans to generate savings of $150 million by simplifying its structure. It is also building on the strength of its iconic core brands. Additionally, its cost-saving program, announced in 2020, targets delivering cost savings of $600 million over three years.
Other Strategic Efforts
Molson Coors is committed to growing its market shares through innovation and premiumization. The company has been rapidly expanding its above-premium portfolio over the past few years to accelerate portfolio premiumization.
Management has emphasized that it has been working to reshape its product portfolio and grow in emerging markets. Its U.S. above-premium portfolio witnessed sales that outpaced its U.S. economy portfolio driven by rapid growth of its hard seltzers, the successful launch of Simply Spiked Lemonade and continued strength in Blue Moon and Peroni’s.
Driven by positive business trends, management raised its 2023 view. Net sales are projected to grow at the higher end of its earlier view of year-over-year high-single-digit growth on a constant-currency basis. This is mainly due to the recovery in the U.S. beer category, stronger-than-expected brand volume growth and better-than-expected pricing across global markets, particularly Canada.
Underlying EBT is likely to jump 32-36% year over year compared with earlier stated 23-26% growth on a constant-currency basis.
Other Stocks to Consider
We have highlighted three other top-ranked stocks from the Consumer Staple sector, namely Vita Coco Company (COCO - Free Report) , The Duckhorn Portfolio (NAPA - Free Report) and Fomento Economico Mexicano (FMX - Free Report) .
Vita Coco, which develops, markets, and distributes coconut water products in the United States, Canada, Europe, the Middle East, and the Asia Pacific, currently sports a Zacks Rank #1. Shares of COCO have rallied 111% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco’s current financial year’s sales and earnings per share suggests growth of 13.5% and 243.5%, respectively, from the year-ago figures. COCO has a trailing four-quarter earnings surprise of 25.7%, on average.
Duckhorn Portfolio, a premier producer of wines, principally in North America, has a trailing four-quarter earnings surprise of 20.8%, on average. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Duckhorn Portfolio’s current financial-year sales and earnings suggests growth of 7.7% and 3%, respectively, from the prior-year levels. Shares of NAPA have declined 39.9% in the past year.
Fomento Economico Mexicano, alias FEMSA in the beverage industry through Coca-Cola FEMSA, is the world’s largest franchise bottler for Coca-Cola products. It currently carries a Zacks Rank #2. Shares of FMX have surged 64.1% in the past year.
The Zacks Consensus Estimate for FMX’s current financial-year sales and earnings suggests growth of 32.3% and 60.3%, respectively, from the year-earlier figures. FMX has a trailing four-quarter earnings surprise of 23.2%, on average.
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Revitalization Plan Keeps Molson Coors (TAP) on Growth Track
Molson Coors Beverage Company (TAP - Free Report) has been in a good spot, courtesy of gains from contributions of its revitalization plan, commitment toward innovation and the premiumization of its global portfolio. Strong portfolio performance, strength in both business units and continued momentum in Coors Light and Miller Lite in the United States have been aiding TAP’s performance.
This led to third-quarter 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year. The company’s adjusted earnings rose 45.5% year over year. Net sales grew 12.4% year over year and 11% on a constant-currency basis. Sales growth was driven by a favorable price and sales mix, higher financial volume and positive impacts of foreign currency.
Additionally, the company’s business trends and initiatives have been well reflected in its share price. Shares of this Zacks Rank #1 (Strong Buy) company have rallied 17.6% in the past year against the industry’s decline of 7.8%. TAP also fared better than the sector and the S&P 500’s growth of 6.8% and 15.7%, respectively, in the same period.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TAP’s 2023 sales and earnings suggests growth of 9.1% and 28.8%, respectively, from the year-ago numbers.
Molson Coors, one of the largest brewers in the world, is on track with its revitalization plan. The plan is focused on achieving sustainable top and bottom-line growth by streamlining the organization, and reinvesting resources into its brands and capabilities.
The company intends to invest in iconic brands and growth opportunities in the above-premium beer space. It also plans to develop digital competencies for employees, supply-chain-related system capabilities and commercial functions. As part of the plan, it has been expanding in adjacencies and beyond beer without hampering the support for its existing large brands.
To facilitate these investments, Molson Coors plans to generate savings of $150 million by simplifying its structure. It is also building on the strength of its iconic core brands. Additionally, its cost-saving program, announced in 2020, targets delivering cost savings of $600 million over three years.
Other Strategic Efforts
Molson Coors is committed to growing its market shares through innovation and premiumization. The company has been rapidly expanding its above-premium portfolio over the past few years to accelerate portfolio premiumization.
Management has emphasized that it has been working to reshape its product portfolio and grow in emerging markets. Its U.S. above-premium portfolio witnessed sales that outpaced its U.S. economy portfolio driven by rapid growth of its hard seltzers, the successful launch of Simply Spiked Lemonade and continued strength in Blue Moon and Peroni’s.
Driven by positive business trends, management raised its 2023 view. Net sales are projected to grow at the higher end of its earlier view of year-over-year high-single-digit growth on a constant-currency basis. This is mainly due to the recovery in the U.S. beer category, stronger-than-expected brand volume growth and better-than-expected pricing across global markets, particularly Canada.
Underlying EBT is likely to jump 32-36% year over year compared with earlier stated 23-26% growth on a constant-currency basis.
Other Stocks to Consider
We have highlighted three other top-ranked stocks from the Consumer Staple sector, namely Vita Coco Company (COCO - Free Report) , The Duckhorn Portfolio (NAPA - Free Report) and Fomento Economico Mexicano (FMX - Free Report) .
Vita Coco, which develops, markets, and distributes coconut water products in the United States, Canada, Europe, the Middle East, and the Asia Pacific, currently sports a Zacks Rank #1. Shares of COCO have rallied 111% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vita Coco’s current financial year’s sales and earnings per share suggests growth of 13.5% and 243.5%, respectively, from the year-ago figures. COCO has a trailing four-quarter earnings surprise of 25.7%, on average.
Duckhorn Portfolio, a premier producer of wines, principally in North America, has a trailing four-quarter earnings surprise of 20.8%, on average. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Duckhorn Portfolio’s current financial-year sales and earnings suggests growth of 7.7% and 3%, respectively, from the prior-year levels. Shares of NAPA have declined 39.9% in the past year.
Fomento Economico Mexicano, alias FEMSA in the beverage industry through Coca-Cola FEMSA, is the world’s largest franchise bottler for Coca-Cola products. It currently carries a Zacks Rank #2. Shares of FMX have surged 64.1% in the past year.
The Zacks Consensus Estimate for FMX’s current financial-year sales and earnings suggests growth of 32.3% and 60.3%, respectively, from the year-earlier figures. FMX has a trailing four-quarter earnings surprise of 23.2%, on average.