MW Molson Coors says less beer is being drunk due to worries about tariffs and the economy

By Tomi Kilgore

Stock drops after brewer's biggest earnings miss in four years and a lowered full-year outlook as consumer confidence falls amid a cooling econom

Shares of Molson Coors Beverage Co. were slumping in early Thursday trading after the brewer reported the biggest quarterly earnings miss in four years, as worries about tariffs and a slowing economy sap consumer confidence.

The company also cut its full-year growth outlook and said it was reducing discretionary spending and investments in capital projects as it looks to mitigate challenges created by the uncertainties by the current U.S. administration's trade policy and the economic outlook.

The stock $(TAP)$ sank 5.9% in premarket trading, which put it on track to open at a three-month low.

"Uncertainty around the effects of geopolitical events and global trade policy, including the impacts on economic growth, consumer confidence and expectations around inflation, and currencies has pressured the beer industry and consumption trends," said Chief Executive Gavin Hattersley.

Net income for the first quarter through March 31 dropped 41.8% from a year ago to $121 million. And underlying earnings per share, which excludes nonrecurring items, fell to 50 cents from 95 cents, well below the 78-cents average analyst estimate compiled by FactSet.

The magnitude of the bottom-line miss - results were 36% below expectations - was the biggest since the 46% miss in the quarterly earnings report released in February 2021.

Net sales were down 11.3% to $2.3 billion, below the FactSet consensus of $2.4 billion. That was also the biggest top-line miss since the February 2021 earnings report.

In the Americas, sales sank 12.3% to $1.88 billion, as a 15.6% drop in volume offset a 4.1% increase in price and sales mix.

In overseas markets, sales declined 6% to $427.3 million, with volume down 9.7% and price and sales mix up 4.8%.

For 2025, the Chicago-headquartered company lowered its sales-growth guidance, excluding the impact of currency movements, saying it now expects a low-single-digit percentage decrease after previously projecting a low-single-digit percentage increase.

For underlying EPS, the company cut its growth outlook to a low-single-digit percentage increase from a high-single-digit increase. The current FactSet 2025 earnings-per-share consensus of $6.31 implies 5.9% growth.

Molson Coors's stock has slipped 0.8% in 2025, while the S&P 500 index SPX has lost 4.3%.

-Tomi Kilgore

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May 08, 2025 07:39 ET (11:39 GMT)

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