Molson Coors beats quarterly estimates after beer demand rebounds in Americas

Molson Coors Beverage Co

13/02/2025 12:43

Feb 13 (Reuters) - Molson Coors  TAP.N  beat
fourth-quarter sales and profit estimates on Thursday, helped by
recovering demand for its beer brands including Coors Light and
Miller Lite in the Americas.
    Shares of the company were up about 5% in premarket trading.
    The company saw sales recover in certain regions, as
consumers continued to lean on their favorite beers after
cutting back on expensive wines and spirits.
    Net sales in its Americas segment were down 2.6% in quarter
ended December 31, after falling 11% in the third quarter.
    The improvement in sales in the Americas, a biggest revenue
generating region, was driven by a consecutive rise in brand
volumes in Canada.
    Molson Coors, similar to its peer Constellation Brands
 STZ.N , has been ramping up prices to counter lingering input
costs such as raw materials.
    That, along with Molson Coors' efforts to lower its
marketing expenses, helped it in posting underlying earnings per
share of $1.30, compared with analysts' estimates of $1.13 per
share, as per data compiled by LSEG.
    Its quarterly net sales came in at $2.74 billion, compared
with analysts' estimates of $2.70 billion.
    The company expects annual net sales to be up in low
single-digit, compared with analysts' estimate of a 0.55%
decline.
    The company said that its outlook does not reflect impacts
of any trade policy activities or tariffs by the U.S. and
potential retaliatory actions by other countries.
    President Donald Trump's import tariffs on goods from
Mexico, Canada and China have alcohol firms scrambling to take
up measures to try and mitigate impact from the potential trade
war.
    Last month, Molson Coors bought an 8.5% stake in a $88
million deal to get exclusive rights to market cocktail mixers
and tonic water of British company Fevertree Drinks  FEVR.L , as
the beer maker looks to expand its non-alcoholic drinks.

 (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Maju
Samuel)
 ((AnujaBharat.Mistry@thomsonreuters.com;))