Molson Coors has cut its full-year sales and profit forecasts after reporting a double-digit decline in net sales in the first quarter of 2025.
The Carling and Coors brewer said it was now expecting annual sales to decrease by low single digits on a constant currency basis. Underlying (non-GAAP) income before taxes were also forecast to fall by low single digits, it added.
Sales had been forecast to grow by low single digits, with income before taxes previously expected to see a mid-single-digit rise.
“We have adjusted our 2025 guidance for certain key financial metrics due to the impacts of the global macroeconomic environment on the beer industry and consumer trends,” said Molson Coors on Thursday (8 May).
The threat posed by tariffs, although not directly referenced in preprepared remarks by management, was heavily implied to be a factor in the downgrade in forecasts.
CEO Gavin Hattersley said: “The macroeconomic environment and its broad effects on the beer industry and consumer, as well as competitive pressures in EMEA & APAC, impacted our financial results in the first quarter.
“The global macroeconomic environment is volatile. 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. Given the uncertainty is ongoing, we have adjusted our 2025 full-year guidance.”
The downbeat forecast came after Molson Coors sales in the three months ended 31 March fell by 11.3% on a reported basis to $2.3bn. Underlying income, meanwhile, crashed by 49.3% to $131.1m.
Hattersley insisted a number of the headwinds – such as tough comparables, the end of contractual brewing agreements in the Americas and transaction fees relating to its deal for an 8.5% stake in UK soft drinks maker Fever-Tree – had been expected.
“We are taking actions to help mitigate the short-term challenges in these uncertain times, like reducing non-business critical discretionary spend and capital projects, while continuing to support the medium and long-term health and growth objectives of the company,” he added.
Shares in Molson Coors fell by more than 7% in early trading on Thursday afternoon.
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