Molson Coors Beverage Company (NYSE:TAP) posted third-quarter results that came in below Wall Street estimates, as the brewer faced ongoing industry-wide weakness and increased competitive pressures.
Shares of the company slipped 0.93% in premarket trading following the announcement.
The beverage maker reported adjusted earnings of $1.67 per share, missing the analyst consensus of $1.71, while revenue fell 2.3% year-over-year to $2.97 billion, also below expectations of $3.04 billion. On a constant-currency basis, net sales declined 3.3% compared to last year.
“Our third quarter performance was largely aligned with our expectations for the second half of the year for the industry and our share performance in the U.S.,” said Rahul Goyal, President and Chief Executive Officer. “We continue to believe that the incremental softness in the industry this year is cyclical.”
Financial volume dropped 6.0% during the quarter, while brand volume decreased 4.5%, reflecting lower shipments across both the Americas and EMEA & APAC regions. The Americas business saw a 4.4% decline in brand volume, while EMEA & APAC was down 5.0%.
Molson Coors also booked major non-cash impairment charges, including a $3.65 billion partial goodwill write-down and $273.9 million in intangible asset impairments, resulting in a GAAP net loss of $2.93 billion.
Despite these setbacks, the company maintained its full-year outlook, though it now expects to finish at the lower end of prior guidance ranges. Molson Coors projects net sales to decline 3–4% on a constant-currency basis and underlying EPS to drop 7–10% for 2025.
“In recent years, we have greatly enhanced our financial flexibility, and we remain committed to improving total shareholder returns,” said Tracey Joubert, Chief Financial Officer. “With a disciplined approach to capital deployment, we intend to balance investments to enhance our product portfolio, while continuing to return cash to shareholders through our share repurchase program and our dividend.”
The company also confirmed a restructuring initiative announced in October, which will cut approximately 400 salaried positions across its Americas segment by the end of December 2025, with estimated restructuring charges between $35 million and $50 million.