In This Article:
Beer company Molson Coors (NYSE:TAP) missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 11.3% year on year to $2.30 billion. Its non-GAAP profit of $0.50 per share was 37.2% below analysts’ consensus estimates.
Is now the time to buy Molson Coors? Find out in our full research report.
Molson Coors (TAP) Q1 CY2025 Highlights:
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Revenue: $2.30 billion vs analyst estimates of $2.43 billion (11.3% year-on-year decline, 5.1% miss)
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Adjusted EPS: $0.50 vs analyst expectations of $0.80 (37.2% miss)
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Adjusted EBITDA: $353.3 million vs analyst estimates of $419.1 million (15.3% margin, 15.7% miss)
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Operating Margin: 8.1%, down from 12.1% in the same quarter last year
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Free Cash Flow was -$264.6 million compared to -$187.6 million in the same quarter last year
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Sales Volumes fell 15.6% year on year (5.7% in the same quarter last year)
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Market Capitalization: $11.53 billion
Company Overview
Sporting an impressive roster of iconic beer brands, Molson Coors (NYSE:TAP) is a global brewing giant with a rich history dating back more than two centuries.
Sales Growth
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years.
With $11.33 billion in revenue over the past 12 months, Molson Coors is one of the larger consumer staples companies and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because there are only a finite number of major retail partners, placing a ceiling on its growth. To expand meaningfully, Molson Coors likely needs to tweak its prices, innovate with new products, or enter new markets.
As you can see below, Molson Coors’s sales grew at a sluggish 2.3% compounded annual growth rate over the last three years as consumers bought less of its products. We’ll explore what this means in the "Volume Growth" section.
This quarter, Molson Coors missed Wall Street’s estimates and reported a rather uninspiring 11.3% year-on-year revenue decline, generating $2.30 billion of revenue.
Looking ahead, sell-side analysts expect revenue to grow 3% over the next 12 months, similar to its three-year rate. This projection is underwhelming and indicates its newer products will not catalyze better top-line performance yet.
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