Molson Coors Beverage Co set for full-year dip as Q3 struggles - results data

Third-quarter sales drop back by 7.8% to US$3.04bn
First half’s top-line rise of 4.2% undone, year-to-date flat (-0.2%) at $8.89bn
‘Americas’ sales tumble 10.7%, ‘EMEA & APAC’ rises 3.8%
2024 sales guidance revised from low single-digit sales lift to 1% decline

Molson Coors Beverage Co has seen its 2024 sales drop back to year-on-year parity after a disappointing third quarter.

The three months to the end of September experienced “summer industry softness” in the US, resulting in a near-8% top-line decline for the group. The impressive +10.1% performance in the first quarter of this year helped Molson Coors deliver a flat sales showing for the year to date, although the company’s full-year forecast has been reset to -1%.

While group volumes in Q3 declined by 4.4%, Molson Coors laid the blame for the performance squarely at the door of the US. Shipment timings and the winding down of a contract brewing agreement in the country were exacerbated by what the group described as “summer industry softness”. Despite the market’s “macroeconomic environment”, the liked of Coors Light, Miller Lite and Coors Banquet were all cited as having “retained a substantial portion of their combined volume share gains of industry versus a year ago when we saw strong share increases”.

Evenso, the ‘Americas’ reporting region registered a slump of 10.7% in the quarter and of 1.6% in the year so far.

The smaller ‘EMEA & APAC’, however, enjoyed a fruitful three months, coming in up 3.8% for the three months (+5.7% YTD) on a 1.8% volumes dip. A favourable price mix in the region demonstrated success for Molson Coors’ premiumisation efforts, with the Madrí Excepcional brand highlighted as having been “highly successful” in the UK.

“While the US industry was softer than expected during the summer, our core power brands remain strong,” said CEO Gavin Hattersley. “Our businesses in EMEA & APAC and in Canada are performing strongly. Not only are they supporting our premiumisation goals, but they serve as proven examples to the US where we have targeted plans in both above-premium beer and beyond beer.”

Last month, EMEA & APAC CEO Sergey Yeskov stood down from his role for personal reason.