Molson Coors Beverage Co. (TAP) revealed on Tuesday that its board has approved a five-year, $2 billion stock buyback program. The announcement came during the brewer’s 2023 strategy day in New York, where executives also expressed confidence in achieving their second consecutive year of sales and profit growth.
Strong Growth Outlook
Looking ahead, Molson Coors executives anticipate “low-single digit” annual net sales growth, excluding currency fluctuations. They also projected “high-single-digit” annual underlying per-share profit growth. To drive this growth, the company will focus on expanding its portfolio of premium beverages and diversifying beyond beer.
Expansion Beyond Beer
Molson Coors intends to leverage its expertise and resources to venture into new beverage segments. The company’s executives believe that embracing a wider range of premium beverages will significantly contribute to their growth trajectory.
Positive 2023 Projections
While the executives expect high-single digit constant-currency sales growth in 2023, they refrained from providing specific forecasts for 2024.
A Promising Future
Reflecting on the company’s journey, Chief Executive Gavin Hattersley noted that Molson Coors had been proactive in transforming its investments, marketing strategies, and operations even before the recent challenges faced by the U.S. beer industry. Hattersley expressed confidence in the company’s turnaround and its ability to adapt to a changing market landscape.
Despite the positive projections, shares of Molson Coors fell 1.6% on Tuesday.
