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Canadian-American brewer Molson Coors has cut its sales and profit forecasts for 2025 after a challenging first quarter.
The Cobra, Staropramen and Carling producer is forecasting low single-digit year-on-year decreases in net sales on a constant-currency basis and underlying (non-GAAP) income before income taxes.
In February, Molson Coors had forecast its sales by that metric would rise at a low single-digit rate in 2025. It was also projecting a mid single-digit increase in underlying income before income taxes.
The new forecasts came as the company reported an 11.3% fall in net sales in the first quarter to $2.3bn.
It also posted a 49.3% fall in underlying income before income taxes to $131.1m.
"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 said.
CEO Gavin Hattersley added: "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."
Hattersley noted "expected headwinds" in the first quarter, including cycling the prior year's US inventory, the discontinuation of contractual brewing arrangements in the Americas and transition fees relating to its deal for a stake in 8.5% stake in UK-based tonic and mixer maker Fevertree Drinks.
It acquired the stake in January for £71m ($88.3m), which Fevertree has called a “long-term strategic partnership”.
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.
"Molson Coors cuts sales, profit forecasts after Q1 declines" was originally created and published by Just Drinks, a GlobalData owned brand.
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