Molson Coors A 2025 Q2 Earnings Beats Expectations, EPS Up 5.4%

Molson Coors A (TAP.A) reported fiscal 2025 Q2 earnings on August 5, 2025, with non-GAAP and GAAP results exceeding analyst expectations despite declining sales volumes. The company sharply cut its full-year 2025 guidance for net sales and income, reflecting ongoing industry challenges and input cost pressures.

Revenue
Total revenue for Molson Coors A fell by 1.6% to $3.20 billion in 2025 Q2, compared to $3.25 billion in the prior year. This decline was primarily driven by a reduction in contract brewing volume and volume deleverage, partially offset by strong pricing and product mix. The Americas segment reported GAAP revenue of $2.50 billion, down 2.8% year over year, while the EMEA & APAC segment generated $703.9 million in revenue, reflecting a 3.0% increase on a reported basis.

Earnings/Net Income
Earnings per share (EPS) for Molson Coors A rose 5.4% to $2.14 in 2025 Q2, up from $2.03 in the same period of 2024. However, net income declined by 0.2% to $424.30 million, slightly below the prior year's $425.30 million. Despite this, the company managed to exceed non-GAAP profit expectations due to cost discipline and favorable pricing.

Price Action
The stock price of Molson Coors A declined 5.58% during the latest trading day and 3.65% over the past week, though it edged up 1.50% month-to-date.

Post-Earnings Price Action Review
A strategy of buying Molson Coors A shares 30 days after a revenue increase and holding for 30 days showed no returns over the past three years. The strategy’s CAGR was 0.00%, indicating it failed to deliver meaningful returns or risk-adjusted benefits.

CEO Commentary
Gavin Hattersley, President and CEO, attributed the quarter’s results to a challenging macroeconomic environment, lower-than-expected U.S. share performance, and volume deleverage, partially offset by strong price and mix growth. Hattersley noted ongoing challenges from the discontinuation of contract brewing agreements and higher indirect tariff impacts, particularly in the Midwest. The leadership reaffirmed confidence in the company’s long-term growth strategy, including its Acceleration Plan and continued investment in core U.S. brands and premiumization.

Guidance
Molson Coors updated its full-year 2025 guidance, now forecasting a 3% to 4% decline in net sales on a constant currency basis, a 12% to 15% decline in underlying income before taxes, and a 7% to 10% decline in diluted EPS. Free cash flow is expected to remain at $1.3 billion ±10%, and the company reaffirmed its capital expenditure guidance of $650 million ±5%. The effective tax rate is projected to range between 22% and 24%.

Additional News
Molson Coors announced a 6.8% increase in its quarterly dividend to $0.47 per share in Q1 2025, marking the fourth consecutive year of dividend growth. Additionally, the company repurchased $306.8 million in shares during the first half of 2025. The company also continued its premiumization strategy, with new innovations including non-alcoholic Blue Moon beer and expanded distribution of Fever-Tree mixer brand. No major M&A activity or C-level changes were reported within the three weeks following the earnings release.