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Molson Coors shows revenue drop but still exceeds expectations
Molson Coors has beaten analyst predictions in its first quarter results, but is still showing a drop in revenue.
The drinks company reported revenue of US$3.25 billion during the quarter, compared to analysts’ expectations of US$3.18 billion. However, Molson Coors revenue for the quarter was still down 4% compared to the same time last year.
The data showed US$1.92 earnings per share (EPS), topping analysts’ consensus estimates of US$1.68 by US$0.24. Overall, Molson Coors’ data offered up mixed results, with a decline in sales revenue in its most recent quarter.
In 2023, Molson Coors’ global net revenue grew more than 9%, and the company also grew its bottom line by nearly 37%, snashing all expectations. At the tme, it noted how these were the business’s “highest reported dollar results on record ever, on top of the already impressive results in 2022”.
In a recent report via Food Dive, Molson Coors CEO Gavin Hattersley attributed the slide to inventory building, which the brewer has admitted will continue into the second half of the year. Despite this, it is forecast to be offset by price hikes and cost-saving measures being made by the company.
Hattersley highlighted how Coors Banquet had been a positive sign for the brewer after the 150 year old beer grew 13% in volume in the first half of this year.
Earlier this year, Molson Coors was also met with a 14-week strike at its Fort Worth Texas plant, but managed to continue production with the staff who remained present.
At the time, Hattersley revealed: “We didn’t over-ship. We shipped what we wanted to in the first half [of the year] so that we didn’t have any inventory challenges going forward.”
Hattersley explained: “Given the flavor consumer evolves and shifts quickly, flavour innovation is key to keeping pace with their demands,” and added: “We believe we have impactful brands with potential in the space.”
Molson Coors has experienced a generous amount of loyalty from its newly-acquired consumers after gaining a sweep of new fans following boycotts from previous Bud Light drinkers moving across to its portfolio since the AB InBev brand was scrutinised during recent marketing blunders. The company had also hinted plans to begin ‘moving beyond beer’ as young consumers look to different types of drinks, including low- and no-alcohol products.
Other developments for the company include Heineken’s subsidiary in Ireland recently agreed to distribute Molson Coors’ products following its deal on Coors Light in the country.
Signs over the past few years have indicated that the meteroic rise of Madrí Excepcional is also now only just being realised. The brand, which was launched by Molson Coors in October 2020, by 2022 suddenly become the most talked about beer in the UK.
The lager recipe is a collaboration between Molson Coors and La Sagra Brewery, south of the Spanish capital, and claims to capture “the soul of Madrid”. The beer itself is actually brewed at Molson Coors’ brewery more than 900 miles away in Tadcaster, Yorkshire. But the questionable Iberian credentials of the lager have not overshadowed the brand’s marketing success, which industry experts have stressed should be heralded and considered when promoting beer in future.
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