World: Molson Coors posts dismal Q1 results, projects 2025 sales to decrease

Molson Coors Beverage Company posted on May 8 dismal first-quarter 2025 results, wherein the top and bottom lines missed the Zacks Consensus Estimate and declined year over year.

The company’s adjusted earnings of 50 cents per share decreased 47.4% year over year and lagged the consensus estimate of 80 cents.

Net sales dropped 11.3% year over year on a reported basis and 10.4% on a constant-currency basis to $2.30 billion and missed the Zacks Consensus Estimate of $2.44 billion. The decline was due to lower financial volumes and adverse currency, partly offset by an improved price and sales mix.

Shares of Molson Coors have fallen more than 5% in the pre-market trading session today, due to bleak first-quarter 2025 results and trimmed view for 2025. The Zacks Rank #3 (Hold) company has gained 6.7% in the past three months compared with the industry’s 20.5% growth.

Financial volumes dropped 14.3% year over year, mainly led by lower shipments across the Americas and EMEA&APAC segments. Brand volumes fell 8%, with a 7.4% decline in the Americas and a 9.8% fall in EMEA&APAC.

Net sales were positively influenced by the price and sales mix, which increased 3.9% year over year as a result of a favorable sales mix from reduced contract brewing volumes in the Americas segment and higher net pricing.

Gross profit decreased 11.7% year over year to $850.9 million and the gross margin fell 20 basis points (bps) to 36.9% in the quarter.

Marketing, general and administrative (MG&A) expenses dropped 0.2% year over year on a reported basis to $653.2 million due to reduced marketing investment and positive foreign currency impacts, partly offset by increased general and administrative expenses stemming from about $30 million of integration and transition fees from the Fevertree USA, Inc. acquisition. Underlying MG&A inched up 1.2% in constant currency.

Underlying earnings before taxes (EBT) plunged 41.1% year over year to $156.3 million. On a constant-currency basis, underlying income before taxes fell 49.5% owing to lower financial volumes and cost inflation with respect to materials and manufacturing expenses, partly offset by favorable mix, pricing and cost savings.


Americas: Net sales in the segment dropped 12.3% year over year to $1.88 billion on a reported basis and 11.5% on a constant-currency basis. The decline was due to lower financial volumes, offset by a positive price and sales mix. Sales in the segment lagged the Zacks Consensus Estimate of $1.96 billion.

Financial volumes were down 15.6% year over year, resulting from lower brand volumes, the cycling of an increased distributor inventory build in the year-ago period to offset the impact of the Fort Worth brewery strike and about 4% effect from lower contract brewing volume stemming from the exit of contract brewing arrangements across the US and Canada. Americas brand volumes fell 7.4%, with an 8.8% decline in the US, due to the macroeconomic impacts from industry softness, the cycling of double-digit growth in the core power brands in the year-ago period and one less trading day in the reported quarter. Canada brand volumes dipped 2.7%.

Price and sales mix positively impacted net sales by 4.1%, mainly owing to favorable sales mix from lower contract brewing volumes, positive brand mix and higher net pricing. Underlying EBT plunged 36.8% on a constant-currency basis, mainly owing to reduced financial volumes, cost inflation with respect to materials and manufacturing expenses, and increased MG&A expenses, somewhat offset by favorable mix, favorable net pricing and cost savings.


EMEA&APAC: The segment’s net sales (on a reported basis) fell 6% year over year to $427.3 million and 4.9% on a constant-currency basis. Sales were hurt by a decline in financial volumes and adverse foreign currency impacts. The price and sales mix improved 4.8% on higher net pricing, premiumization and increased factored volumes. The Zacks Consensus Estimate was pegged higher at $452 million.

Financial volumes dipped 9.7% year over year and brand volumes fell 9.8% due to reduced volumes in all regions, due to weak market demand and increased competitive backdrop. The segment’s underlying loss before taxes increased 22.5% year over year on a constant-currency basis, owing to lower financial volumes, somewhat offset by reduced MG&A expense and higher net pricing.


Molson Coors ended the first quarter with cash and cash equivalents of $412.7 million. As of March 31, 2025, the company had a total debt of $6.24 billion, resulting in a net debt of $5.83 billion.

Net cash provided by operating activities amounted to $90.7 million in first-quarter 2025. Moreover, it recorded a negative underlying free cash flow of $264.6 million as of March 31, 2025, mainly due to lower operating cash flows and higher capital expenditures.

During first-quarter 2025, TAP paid $59.6 million, including brokerage commissions, for share repurchases and dividends of $99.2 million.

The global macro landscape is evolving fast, leading to uncertainty. Management has revised the 2025 view for some key financial metrics, due to the impacts of the global macroeconomic landscape on the beer industry and consumer trends. The company has reviewed some factors, including the direct cost impacts from tariffs, the indirect impacts of multi-faceted trends and inherent uncertainties. Molson Coors now projects 2025 sales to decrease in low-single-digit year over year on a constant-currency basis compared with an increase in low-single-digit expected earlier.

Molson Coors expects 2025 underlying EPS to grow in the low single-digit range from 2024 compared with the earlier expectation of a high single-digit increase. It now expects underlying EBT to decline low-single-digit year over year at constant currency against mid-single-digit growth projected previously. Underlying depreciation and amortization are projected to be $675 million, plus or minus 5%. The company expects an underlying effective tax rate of 22-24% for 2025. Consolidated net interest expenses are anticipated to be $215 million, plus or minus 5%.

The company estimates a capital expenditure of $650 million (plus or minus 5%) for 2025 compared with $750 million (plus or minus 5%) guided earlier. The underlying free cash flow is expected to be $1.3 billion, plus or minus 10%.

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