Molson Coors cuts 2025 sales and profit forecasts following weak Q1 results
Molson Coors lowers financial outlook for 2025 as macroeconomic challenges and industry pressures weigh on first-quarter performance.
USA – Molson Coors has revised its 2025 sales and profit outlook downward after a difficult first quarter marked by significant revenue and earnings declines.
The Canadian-American brewer, known for brands like Coors Light and Miller Lite, now expects low single-digit decreases in both net sales on a constant-currency basis and underlying income before income taxes.
This marks a shift from its February forecast, when the company anticipated low single-digit growth in sales and a mid single-digit rise in underlying profit for the year.
The outlook revision follows the company’s first-quarter earnings report, which showed an 11.3% drop in net sales to US$2.3 billion, falling short of analyst expectations of US$2.41 billion, according to data from LSEG.
Underlying income before income taxes also declined sharply by 49.3% to US$131.1 million.
Molson Coors attributed the weak performance primarily to a downturn in its Americas segment and broader macroeconomic challenges.
“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,” the company stated.
CEO Gavin Hattersley said that macroeconomic volatility, competitive pressures in the EMEA & APAC regions, and shifting consumer patterns were key contributors to the decline.
“Uncertainty around the effects of geopolitical events, global trade policy, and inflation expectations continues to pressure the beer industry and consumption trends,” Hattersley explained.
To navigate the challenges, the company announced plans to reduce non-essential spending and delay capital projects.
Despite global tariffs, Molson Coors expects only a minimal direct cost impact, as most of its U.S. production occurs domestically at its Colorado-based breweries.
Additional headwinds in the quarter included cycling prior year U.S. inventory, ending certain brewing contracts in the Americas, and incurring transition fees related to its recent £71 million (US$88.3 million) acquisition of an 8.5% stake in UK-based mixer producer Fevertree Drinks.
Molson Coors also confirmed that Hattersley, who has led the company since 2019, plans to step down by year-end.
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