Molson Coors Beverage Co. has again cut forecasts for closely-watched sales and earnings metrics as volumes in EMEA and APAC missed Wall Street expectations.
The Madri brewer said today (6 August) it now expects its net sales to fall by 3-4% on a constant-currency basis in 2025.
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In May, when Molson Coors last lowered its guidance, it forecasts a “low single-digit decline”.
The US giant issued new projections for its underlying income before income taxes and underlying diluted earnings per share.
The Staropramen owner sees its underlying income before income taxes decrease 12-15% this year, once exchange rates are removed from calculations. It had forecast a “low single-digit” fall.
Molson Coors expects its underlying diluted EPS to be 7-10% lower in 2025, again compared to a low single-digit decline it had previously projected.
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By GlobalData“As a result of the anticipated ongoing macroeconomic impacts on the industry, our lower-than-expected US share performance, and higher-than-expected indirect tariff impacts on the pricing of aluminum, in particular the Midwest Premium pricing, we have adjusted our 2025 full year top and bottom-line guidance,” president and CEO Gavin Hattersley said.
The new guidance came alongside Molson Coors’ second-quarter results, which included lower net sales, volumes and operating income – although net income grew slightly.
The volumes from Molson Coors’ combined EMEA and APAC division came in below Wall Street expectations, falling 7.8%. The company pointed to “soft market demand and a heightened competitive landscape”.
In the Americas, Molson Coors’ volumes dropped 6.6% in the second quarter amid lower brand volumes in the US and the end of a contract brewing deal. The decline was better than analysts had forecast.
“We continue to view the incremental softness in the industry performance this year as cyclical, and we continue to believe in Molson Coors’ ability to achieve its long-term growth objectives,” Hattersley added.
“That said, our second-quarter financial results were impacted by the macroeconomic environment and its broad effects on the beer industry and consumer, our softer US share performance, as well as the resulting impact of volume deleverage.”
Hattersley plans to leave the US beer major by the end the year, the group said in a statement on 14 April. He has headed the Aspall cider brewer since 2019.
“Collectively, we have held most of the share gains over the last three years for our core US power brands – Coors Light, Miller Lite, and Coors Banquet. We remain committed to our premiumisation plans: in EMEA and APAC behind the strength of Madri, in Canada with continued growth in Miller Lite and our flavour portfolio, and in the US with Peroni and our partnership with Fever-Tree as well as continued focus against Blue Moon,” he said.
In the second quarter to 30 June, Molson Coors’ net sales fell 1.6% to $3.2bn, or by 2.6% on a constant-currency basis.
Financial volume – which represents Molson Coors’ owned or “actively managed” brands – fell 7%.
Operating income decreased 2.7% to $583.6m. Net income attributable to Molson Coors grew 0.2% to $428.7m.
Bernstein analyst Nadine Sarwat said: “Molson Coors’ Q2 print beat estimates, led by the US. Looking through the noise of lost US contract brewing and favourable US shipment timing, one number stands out: US brand volumes growth of ‘just’ -5.3%, better than Nielsen-tracked channels of -7.2% for the same period.
“Yet the rest of the release makes for grim reading. 2025 guidance was cut, which was expected given consensus levels today. Yet the cut has gone below consensus expectations.”
