Molson Coors Q2 Earnings & Sales Beat, Stock Dips on Bleak View

Core Viewpoint - Molson Coors Beverage Company (TAP) reported second-quarter 2025 results with earnings per share exceeding expectations, while sales experienced a decline [1][2]. Financial Performance - Adjusted earnings per share increased by 6.8% year over year to $2.05, surpassing the Zacks Consensus Estimate of $1.83 [1]. - Net sales fell by 1.6% year over year to $3.2 billion, beating the Zacks Consensus Estimate of $3.1 billion [2]. - Gross profit decreased by 3.6% year over year to $1.28 billion, with a gross margin decline of 30 basis points to 34.3% [7]. Volume and Sales Mix - Financial volumes dropped by 7% year over year, attributed to lower shipments in the Americas and EMEA&APAC segments [5][6]. - Brand volumes fell by 5.1%, with a 4% decline in the Americas and a 7.8% decline in EMEA&APAC [5]. - The price and sales mix improved by 4.4% year over year, driven by premiumization and higher net pricing across key markets [6][11]. Segment Analysis - In the Americas, net sales decreased by 2.8% year over year to $2.5 billion, influenced by lower financial volumes but offset by a favorable price and sales mix [9]. - EMEA&APAC segment net sales rose by 3% year over year to $703.9 million, benefiting from a favorable price and sales mix despite lower financial volumes [12]. Future Outlook - The company revised its 2025 guidance, projecting a sales decline of 3-4% on a constant-currency basis and a 7-10% decline in underlying EPS [16][17]. - Underlying EBT is expected to decline by 12-15% year over year at constant currency [18]. - Capital expenditure is estimated at $650 million for 2025, with an expected underlying free cash flow of $1.3 billion [19].