Core Insights - Molson Coors Beverage Company (TAP) reported third-quarter 2025 results that missed both sales and earnings estimates, with adjusted earnings per share declining 7.2% year over year to $1.67, below the Zacks Consensus Estimate of $1.72 [1][6] Financial Performance - Net sales decreased 2.3% year over year to $2.97 billion, missing the Zacks Consensus Estimate of $3.02 billion, with a 3.3% decline on a constant-currency basis [2][6] - Gross profit fell 2.4% year over year to $1.17 billion, with a gross margin decrease of 5 basis points to 39.47% [7] - Underlying earnings before taxes (EBT) declined 11.2% year over year to $426 million, with a constant-currency decline of 11.9% [8] Segment Analysis - In the Americas segment, net sales dropped 3.6% year over year to $2.26 billion, missing the Zacks Consensus Estimate of $2.32 billion, primarily due to lower financial volumes [9] - The EMEA&APAC segment saw net sales rise 2.4% year over year to $721 million, benefiting from an improved price and sales mix, although it fell 2.4% on a constant-currency basis [12] Market Reaction - Following the disappointing results, Molson Coors shares fell 1.7% in pre-market trading, with a 12.2% decline over the past three months compared to the industry’s 4.7% decline [3] Future Outlook - The company anticipates a sales decline of 3-4% and a 7-10% decline in underlying EPS for 2025, projecting underlying EBT to decrease by 12-15% year over year at constant currency [17][18] - Capital expenditure is estimated at $650 million for 2025, with an expected underlying free cash flow of $1.3 billion [18] Financial Position - As of September 30, 2025, Molson Coors had cash and cash equivalents of $950.2 million and total debt of $6.29 billion, resulting in a net debt of $5.34 billion [14] - The company reported negative underlying free cash flow of $782.1 million for the nine months ended September 30, 2025, primarily due to lower operating cash flow [14]

Financial Data and Key Metrics Changes - Third quarter consolidated net sales revenue decreased by 3.3% [19] - Underlying pre-tax income fell by 11.9% [19] - Underlying earnings per share declined by 7.2% [19] - A non-cash partial goodwill impairment charge of $3.6 billion was recorded [21] - Non-cash intangible asset impairment charges amounted to $274 million [21] Business Line Data and Key Metrics Changes - U.S. beer industry volume was down by 4.7% based on internal estimates [19] - U.S. volume share decreased by 40 basis points [19] - Contract brewing negatively impacted Americas financial volume by 450,000 hectoliters, equating to a 3 percentage point headwind [19] - EMEA and APAC volumes continued to be pressured due to soft market demand [19] Market Data and Key Metrics Changes - The macro environment has pressured demand across regions, particularly affecting lower-income and Hispanic consumers in the U.S. [8][9] - The company anticipates lower year-end U.S. distributor inventory levels compared to year-end 2024 [23] - The Midwest premium pricing has remained elevated, with costs expected to exceed the prior year by $40-$55 million [25] Company Strategy and Development Direction - The company aims to focus on building strong and scalable brands in both beer and beyond beer [10] - There is a commitment to premiumization, particularly in the above-premium segment, where the company is underindexed in the U.S. [12] - The company plans to implement structural changes to enhance agility and decision-making at the local level [16] - A corporate restructuring plan is in place to create a leaner organization, reducing salaried headcount by approximately 400 positions [17] Management's Comments on Operating Environment and Future Outlook - Management believes the current industry softness is cyclical rather than structural, with expectations for recovery as macro issues subside [9][44] - The company is committed to returning to growth, supported by a healthy balance sheet and strong free cash flow [9] - Future results are expected to take time, but there is confidence in the brand portfolio and strategic plans [18] Other Important Information - The company remains committed to its dividend and share repurchase program, viewing its stock as a compelling investment [18] - The guidance for 2025 has been reaffirmed, with expectations to come in at the low end of prior ranges for key metrics [22] Q&A Session Summary Question: What are the biggest opportunities and challenges ahead for the new CEO? - The new CEO highlighted the need to strengthen core brands and address share losses in the economy and flavor categories, while also focusing on premiumization opportunities [30] Question: Can you provide insights on the fourth quarter's top-line guidance? - The CFO indicated expectations for better performance in EMEA, APAC, and Canada, along with softer comps from contract brewing in the U.S. [32] Question: What are the pressures facing the beer category, and why is it considered cyclical? - Management noted that while there are structural issues, current pressures are largely due to macroeconomic factors, and they expect recovery as these issues are resolved [44] Question: How does the company plan to balance investments between beer and beyond beer? - The CEO emphasized the importance of supporting core beer brands while also seeking growth in the beyond beer segment, indicating a balanced approach to capital allocation [78] Question: What is the expected impact of the restructuring on the organization? - The restructuring aims to enhance agility and speed in decision-making, allowing for a more localized approach to market execution [76]

Financial Data and Key Metrics Changes - Third quarter consolidated net sales revenue decreased by 3.3% [19] - Underlying pre-tax income fell by 11.9% [19] - Underlying earnings per share declined by 7.2% [19] - The U.S. beer industry volume was down by 4.7% based on internal estimates [19] - A non-cash partial goodwill impairment charge of $3.6 billion was recorded [21] Business Line Data and Key Metrics Changes - U.S. volume share decreased by 40 basis points, with better performance in the on-premise channel compared to off-premise [19] - Contract brewing negatively impacted Americas financial volume by 450,000 hectoliters, equating to a 3 percentage point headwind [19] - EMEA and APAC volumes continued to be pressured due to soft market demand and heightened competition [19] Market Data and Key Metrics Changes - The macro environment has pressured demand across regions, particularly affecting lower-income and Hispanic consumers in the U.S. [8][9] - The company believes the current industry softness is cyclical rather than structural [9][44] Company Strategy and Development Direction - The company aims to focus on building strong and scalable brands in both Beer and Beyond Beer [10] - There is a commitment to premiumization, particularly in the U.S. market where the company is underindexed in above-premium segments [12][44] - The company plans to implement structural changes to enhance agility and decision-making at the local level [16][76] - A corporate restructuring plan is in place to create a leaner organization, reducing salaried headcount by approximately 400 positions or 9% [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by macroeconomic factors but remains confident in the company's ability to return to growth [5][9] - The company expects to reaffirm its 2025 guidance but anticipates results at the low end of prior ranges for key metrics [22] - Management emphasizes the importance of maintaining a healthy balance sheet and strong free cash flow while investing in growth opportunities [18] Other Important Information - The company is committed to its dividend and share repurchase program, viewing its stock as a compelling investment [18] - The company plans to redeploy savings from restructuring to invest in key brands and commercial capabilities [17][70] Q&A Session Questions and Answers Question: What are the biggest opportunities and challenges ahead for the new CEO? - The new CEO highlighted the need to strengthen core brands and address share losses in the economy and flavor categories while capitalizing on opportunities in above-premium segments [30] Question: Can you provide insights on the implied improvement for the fourth quarter? - The company expects better top-line performance in EMEA, APAC, and Canada, along with softer comps from contract brewing in the U.S. [32] Question: What pressures are facing the beer category, and why is it believed to be cyclical? - Management noted that the beer category has faced structural issues but believes current challenges are cyclical due to macroeconomic factors [44] Question: How does the company plan to balance investments between Beer and Beyond Beer? - The company intends to maintain a strong focus on beer while also investing in Beyond Beer to ensure it becomes a significant growth driver [78]

Financial Data and Key Metrics Changes - Third quarter consolidated net sales revenue decreased by 3.3% [23] - Underlying pretax income fell by 11.9% [23] - Underlying earnings per share declined by 7.2% [23] - U.S. beer industry volume was down by 4.7% based on internal estimates [23] - A non-cash partial goodwill impairment charge of $3.6 billion was recorded [26] Business Line Data and Key Metrics Changes - U.S. volume share decreased by 40 basis points, with better performance in the on-premise channel compared to off-premise [24] - Contract brewing was a 450,000 hectoliter headwind to Americas financial volume [24] - EMEA and APAC volumes continued to be pressured by soft market demand [25] Market Data and Key Metrics Changes - The macro environment has pressured demand across regions, particularly affecting lower-income and Hispanic consumers in the U.S. [9] - The Midwest premium pricing remained elevated but within expected ranges [25] Company Strategy and Development Direction - The company aims to focus on building strong and scalable brands in both beer and Beyond Beer [10] - Plans to prioritize investments in core and economy beer portfolios while transforming above-premium and Beyond Beer portfolios [11] - The company intends to increase focus on economy brands and capitalize on the success of brands like Banquet [12][13] - A corporate restructuring plan is being implemented to create a leaner organization and optimize cost structures [20] Management's Comments on Operating Environment and Future Outlook - Management believes the current industry softness is cyclical and expects to return to growth [9] - The company is committed to improving shareholder value and maintaining a disciplined capital allocation approach [21] - Management acknowledges the challenges posed by macroeconomic factors but remains confident in the company's ability to navigate these headwinds [9][21] Other Important Information - The company expects to reaffirm its 2025 guidance, anticipating declines in key metrics [27] - Year-end U.S. distributor inventory levels are expected to be lower compared to year-end 2024 [28] Q&A Session Summary Question: What are the biggest opportunities and challenges ahead for the new CEO? - The new CEO highlighted the importance of listening to employees and customers, focusing on strengthening core brands and addressing gaps in the economy and flavor categories [37][39] Question: Can you provide insights on the implied improvement for Q4? - Management expects better top-line performance in EMEA, APAC, and Canada, along with lower G&A expenses due to reduced incentive compensation [40][41] Question: What are the pressures facing the beer category, and why is it considered cyclical? - Management noted that the beer category has faced structural issues but believes the current challenges are largely cyclical due to macroeconomic factors [52][53] Question: How does the company plan to address the upcoming bond maturity? - The company will review its debt as it approaches maturity, maintaining a focus on its leverage ratio [68] Question: What is the outlook for the economy portfolio? - The management emphasized the need to support the economy portfolio through appropriate marketing, innovation, and regional strategies [96]

Financial Data and Key Metrics Changes - Consolidated net sales revenue decreased by 3.3% in Q3 2025 [18] - Underlying pre-tax income declined by 11.9% [18] - Underlying earnings per share fell by 7.2% [18] - The U.S. beer industry volume was down by 4.7% based on internal estimates [18] - A non-cash partial goodwill impairment charge of $3.6 billion was recorded [19] Business Line Data and Key Metrics Changes - U.S. volume share decreased by 40 basis points, with better performance in the on-premise channel compared to off-premise [18] - Contract brewing was a 450,000 hectoliter headwind to the Americas financial volume [18] - Volume in the Americas and APAC continued to be pressured across all regions due to soft market demand [18] Market Data and Key Metrics Changes - The macro environment in Europe contributed to continued industry softness, impacting demand [7] - The Midwest premium pricing remained elevated, with marketing expenses increasing while G&A decreased due to lower incentive compensation [18] Company Strategy and Development Direction - The company aims to focus on building strong and scalable brands in both beer and beyond beer [8] - There is a commitment to premiumization, particularly in the above-premium segment, where the company is underindexed in the U.S. [10] - The company plans to invest in core and economy beer portfolios while transforming above-premium and beyond beer portfolios [8][10] - A corporate restructuring plan is being implemented to create a leaner organization and reinvest in key brands and capabilities [15][16] Management's Comments on Operating Environment and Future Outlook - Management believes the current industry softness is cyclical and expects a return to growth as macro issues are resolved [7][42] - The company is committed to returning cash to shareholders while also looking for scalable and accretive M&A opportunities [16][48] - Management expressed confidence in the company's ability to navigate near-term challenges and return to top and bottom-line growth [7][17] Other Important Information - The company expects to reaffirm its 2025 guidance but anticipates coming in at the low end of prior ranges for key metrics [20] - Year-end U.S. distributor inventory levels are expected to be lower compared to year-end 2024 [21] Q&A Session Questions and Answers Question: What are the biggest opportunities and challenges ahead for the new CEO? - The new CEO highlighted the need to strengthen core brands and address share losses in the economy and flavor categories while recognizing the strong foundation of the company [28] Question: Can you provide insights on the implied improvement for Q4? - Management expects better top-line performance in the Americas, APAC, and Canada, driven by lapping softer comps from contract brewing [31] Question: How do you view the pressures facing the beer category? - Management believes the current pressures are cyclical, influenced by macroeconomic factors, and expects a return to pre-2025 levels once these issues are resolved [42] Question: What is the company's approach to capital deployment and M&A? - The company aims to be disciplined in capital deployment, focusing on accretive deals that fill portfolio gaps while maintaining a strong balance sheet [48] Question: How will the restructuring improve agility and speed? - The restructuring is designed to bring leadership closer to market execution, enabling quicker decision-making and resource allocation [70]

Financial Performance - Net sales for Q3 2025 were $2,973.5 million, a decrease of 2.3% compared to $3,042.7 million in Q3 2024[19] - Gross profit for Q3 2025 was $1,173.5 million, down from $1,202.5 million in Q3 2024, reflecting a decline of 2.4%[19] - The company reported a net loss of $2,936.9 million in Q3 2025, compared to a net income of $228.8 million in Q3 2024[20] - Net income for the nine months ended September 30, 2025, was a loss of $2,389.5 million, compared to a profit of $864.0 million for the same period in 2024[25] - The net loss for the third quarter of 2025 is reported at $2,922.0 million, compared to a net income of $865.7 million for the same period in 2023[28] - The company reported a basic loss per share of $14.79 for Q3 2025, compared to earnings of $0.96 per share in Q3 2024[19] - The company reported a net loss attributable to MCBC of $2,927.6 million for the three months ended September 30, 2025, compared to a net income of $199.8 million in the same period of 2024[116] - The company reported a net loss of $2,152.3 million for the nine months ended September 30, 2025[214] Goodwill and Impairments - Goodwill impairment of $3,645.7 million was recorded in Q3 2025, significantly impacting overall financial performance[19] - Goodwill impairment recorded was $3,645.7 million, with no impairment reported in the previous year[25] - A partial goodwill impairment charge of $3,645.7 million was recorded in the third quarter of 2025 related to the Americas reporting unit[129] - The carrying value of goodwill decreased to $1,943.5 million as of September 30, 2025, down from $5,582.3 million as of December 31, 2024, due to a partial impairment loss of $3,645.7 million recorded during the third quarter of 2025[63][64] - The Americas segment experienced an accumulated impairment loss of $5,159.0 million as of September 30, 2025, indicating ongoing risk of future impairments[63][66] - A partial impairment charge of $198.6 million was recognized for the Staropramen family of brands intangible asset in the EMEA&APAC segment during the third quarter of 2025[111] Assets and Liabilities - Total assets decreased to $22,873.4 million as of September 30, 2025, down from $26,064.3 million at the end of 2024[23] - Current liabilities increased to $5,344.8 million as of September 30, 2025, compared to $3,045.2 million at the end of 2024[23] - The company’s total equity decreased to $10,523.3 million as of September 30, 2025, down from $13,284.2 million at the end of 2024[23] - Cash and cash equivalents were $950.2 million as of September 30, 2025, slightly down from $969.3 million at the end of 2024[23] - Total current assets increased to $2,042.9 million from $1,859.8 million as of December 31, 2024[214] - Total current liabilities rose significantly to $4,969.6 million from $2,673.9 million as of December 31, 2024[214] - Total noncurrent assets decreased to $20,147.0 million from $23,958.2 million as of December 31, 2024[214] - Long-term debt as of September 30, 2025, was $3,833.8 million, down from $6,063.6 million as of December 31, 2024[214] Cash Flow and Investments - Net cash provided by operating activities decreased to $1,243.7 million from $1,415.8 million year-over-year[25] - Net cash used in investing activities was $(635.1) million, compared to $(530.3) million in the prior year[25] - The balance of cash and cash equivalents at the end of the period was $950.2 million, down from $1,021.7 million at the end of the previous year[25] - The company made a minority investment of $88.1 million in Fevertree Drinks plc, with the investment recorded at a fair value of $127.4 million as of September 30, 2025[61] - The company incurred total capital expenditures of $533.7 million for the nine months ended September 30, 2025, compared to $563.0 million in the same period of 2024, a decrease of approximately 5.2%[118] - Net cash used in investing activities increased by $104.8 million to $635.1 million for the nine months ended September 30, 2025, primarily due to investments in Fevertree Drinks plc and acquisitions[194] Expenses - Marketing, general and administrative expenses were $686.7 million in Q3 2025, compared to $684.7 million in Q3 2024, indicating a slight increase[19] - Depreciation and amortization increased to $530.2 million from $512.1 million year-over-year[25] - Other operating expenses increased by $240.9 million for the nine months ended September 30, 2025, primarily due to intangible asset impairments[157] - The interest expense for the three months ended September 30, 2025, was $62.7 million, compared to $106.4 million in the same period of 2024, indicating a significant reduction of approximately 41.0%[116] Shareholder Returns - Dividends paid increased to $285.7 million from $279.4 million year-over-year[25] - The company declared dividends totaling $93.4 million in the third quarter of 2025, reflecting a significant commitment to returning value to shareholders[28] - During the nine months ended September 30, 2025, dividends declared to eligible shareholders were $1.41 per share, with the CAD equivalent equal to CAD 1.96 per share[37] Restructuring and Strategic Initiatives - The company expects to incur restructuring charges between $35 million to $50 million as part of an Americas restructuring plan, which involves the elimination of approximately 400 salaried positions by the end of December 2025[52] - The Americas restructuring plan will eliminate approximately 400 salaried positions by the end of December 2025, with expected restructuring charges between $35 million and $50 million[126] - The company aims to expand its product portfolio beyond traditional beer offerings, including flavored beverages and spirits, to capture a wider consumer base[119] - The company obtained exclusive rights to produce, market, and sell Fever-Tree products in the U.S., aligning with its strategy to expand beyond the beer aisle[131] Market Conditions and Challenges - Other comprehensive income for the third quarter of 2025 shows a loss of $78.2 million, indicating challenges in market conditions[28] - Financial volume decreased by 6.0% to 19.385 million hectoliters for the three months ended September 30, 2025, compared to 20.629 million hectoliters in the same period of 2024[135] - The company plans to continue evaluating strategies to mitigate the impact of economic and competitive pressures on its business[123] - The company recognized a loss of $41.1 million related to the disposal of certain U.S. craft businesses during the third quarter of 2024[132] Taxation - The effective tax rate for the three months ended September 30, 2025, was 16%, a decrease from 31% in the prior year, primarily due to a $3,645.7 million partial goodwill impairment[99] - The effective tax rate for the nine months ended September 30, 2025, was 14%, down from 25% in the prior year, largely due to the impact of the goodwill impairment[160]

分组1 - Molson Coors Brewing reported quarterly earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.72 per share, and down from $1.80 per share a year ago, representing an earnings surprise of -2.91% [1] - The company posted revenues of $2.97 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.67%, and down from $3.04 billion year-over-year [2] - Molson Coors shares have declined approximately 24.6% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.18 on revenues of $2.73 billion, and for the current fiscal year, it is $5.45 on revenues of $11.26 billion [7] - The Zacks Industry Rank for Beverages - Alcohol is in the bottom 29% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8]

Q3 2025 Financial Performance - Financial volume decreased by 60% to 19385 million hectoliters[7] - Brand volume decreased by 45% to 20366 million hectoliters[7] - Net sales revenue decreased by 33% to $2973 million on a constant currency basis[7] - Underlying income before income taxes decreased by 119% to $426 million on a constant currency basis[7] - Underlying earnings per diluted share decreased by 72% to $167[7] Capital Allocation - Net debt as of September 30 2025 was $5342 million an increase of 24%[7] - Dividend per share increased by 68% to $047[7] - Shares repurchased decreased by 567% to 0502 million shares[7] - Capital expenditures incurred for Q3 YTD 2025 were $405 million[35] 2025 Full Year Outlook - The company expects a net sales revenue decline of 3% to 4% on a constant currency basis[46] - The company expects an underlying income before income taxes decline of 12% to 15% on a constant currency basis[46] - The company expects an underlying diluted earnings per share decline of 7% to 10%[46]

Core Insights - Molson Coors Beverage Co. recorded impairment charges of nearly $4 billion, reflecting ongoing challenges in sales performance and asset valuation [1][3][6] - The company reported a 2.3% decline in net sales for the third quarter, totaling $2.97 billion, with a significant drop in financial volumes [5][6] - CEO Rahul Goyal emphasized the need for rapid transformation within the company, announcing job cuts and structural changes to enhance agility and reinvestment capabilities [4][5] Financial Performance - The third-quarter net sales decreased by over 2%, with a 6% decline in financial volumes for Molson Coors' owned brands [1][6] - The Americas division experienced a 3.6% sales drop, while the combined EMEA and APAC division saw a 2.4% decline [6] - The company reported a third-quarter operating loss of $3.43 billion and a net loss of $2.93 billion, contrasting with an operating income of $451.2 million and net income of $199.8 million in the same period last year [6] Impairment Charges - A "triggering event" led to a partial goodwill impairment loss of $3.65 billion for the Americas reporting unit [3] - Intangible impairment losses of $273.9 million were recorded for the Blue Run Spirits asset group and Staropramen brands [3] Management Commentary - CFO Tracey Joubert noted that underlying financial results were largely as expected, impacted by industry challenges and increased competition [7] - The company reaffirmed its full-year guidance but anticipates results at the lower end of the expected ranges for key metrics [7]

Group 1 - Molson Coors reported a loss in the third quarter, indicating challenges within the beer industry [1] - The company experienced lower sales during this period, reflecting a broader slump affecting the sector [1]