Molson Coors Beverage reported second-quarter results showing revenue declined 3.3% to $3.10 billion as the brewer navigates sluggish consumer demand and elevated supply costs. The company behind brands like Miller Lite and Blue Moon posted net income of $231.7 million, or $1.23 per share, down from $428.7 million, or $2.13 per share, a year earlier.

Excluding one-time items, adjusted earnings per share came in at $1.58, surpassing the $1.51 consensus estimate from analysts surveyed by FactSet. Revenue of $3.10 billion also edged past the $3.08 billion forecast. The results reflect ongoing pressure from inflationary cost pressures and shifting drinking habits.

Management emphasized progress on pricing strategies and cost management to offset volume declines. The brewer continues to invest in its above-premium portfolio and expand distribution for key brands. However, the competitive landscape remains challenging as consumers trade down to value options.

Investors will watch whether the company can sustain margin improvement in the second half. The stock reacted modestly to the mixed but slightly better-than-expected performance.