Molson Coors (TAP) Q2 EPS Jumps 12%

Core Viewpoint - Molson Coors Beverage reported strong non-GAAP earnings per share (EPS) of $2.05 for Q2 2025, exceeding analyst expectations, but faced challenges with declining net sales and volume trends, prompting a downward revision of its full-year outlook due to weaker industry demand and high input costs [1][11]. Financial Performance - Non-GAAP EPS for Q2 2025 was $2.05, surpassing the consensus estimate of $1.82, marking a year-over-year increase of 6.8% from $1.92 in Q2 2024 [2]. - Reported revenue (GAAP) reached $3,200.8 million, exceeding expectations by $113.1 million, but represented a 1.6% decline from $3,252.3 million in the prior year [2]. - The Americas segment revenue fell by 2.8% to $2,504.8 million, while the EMEA & APAC segment revenue increased by 3.0% to $703.9 million [2]. Strategic Focus - The company is pursuing a "premiumization" strategy, aiming for one-third of its global portfolio to consist of above-premium brands, while diversifying into ready-to-drink cocktails and non-alcoholic beverages [4]. - Investments in innovation and brand support are key components of the strategy to meet changing consumer demands [4][9]. Operational Insights - Consolidated financial volume decreased by 7.0%, with brand volume down 5.1%, despite the company beating profit expectations due to effective pricing and cost controls [5]. - Gross margin faced pressure with a 7.3% increase in cost of goods sold per hectoliter, attributed to inflation and lower production volumes [6]. Future Outlook - The company revised its FY2025 guidance, expecting a decline in net sales and underlying income before income taxes, forecasting a 3-4% decrease in constant currency net sales and a 12-15% decline in underlying income [11]. - Key watch points include industry volume stabilization, progress on premiumization goals, and maintaining pricing discipline amid elevated competition [12].