Molson Coors forecasts annual sales decline as US volumes take a hit
Adds company comment in paragraph 3
Nov 7 (Reuters) -Molson Coors TAP.N on Thursday forecast lower full-year sales and missed Wall Street estimates for quarterly revenue as the Coors Light beer maker grapples with a hit to volumes in the United States amid higher prices.
The company, like its peer Constellation Brands STZ.N, has had to rely on higher pricing to offset an increase in costs faced by the industry against the backdrop of sticky inflation.
"The U.S. was challenged with the macroeconomic environment along with anticipated unfavorable shipment timing and the wind down of a contract brewing agreement," Molson Coors said.
The company now expects 2024 net sales to be down about 1%, compared with its prior forecast of a low single-digit percentage increase.
While customers stretched their budgets to purchase the company's products up until recently, the downbeat sales forecast indicates inflation is still weighing on consumers.
Molson Coors posted a 5.4% fall in Americas brand volumes during the third quarter, primarily driven by a drop in volumes of its higher-priced brands.
The company's quarterly net sales fell 7.8% to $3.04 billion, compared with the average analyst estimate of $3.13 billion, according to data compiled by LSEG.
On an adjusted basis, Molson Coors earned $1.80 per share, beating estimates of $1.67 per share. The company's shares were up 1%.
Separately, the company also said it was buying a majority stake in ZOA Energy - a drinks company co-founded by Hollywood actor Dwayne "The Rock" Johnson - as Molson Coors looks to expand its drinks portfolio beyond alcoholic beverages.
Reporting by Aatrayee Chatterjee and Aishwarya Venugopal in Bengaluru; Editing by Shounak Dasgupta
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