Sometimes you don't need to sell more beer to make more money. You just need to charge a little more for each one. That's the story of Molson Coors (TAP) this quarter.
The brewer's stock rose Thursday after it reported first-quarter results that comfortably beat Wall Street's expectations. Adjusted earnings came in at 62 cents per share, well above the 36 cents analysts had predicted. Revenue hit $2.351 billion, also ahead of the $2.327 billion consensus.
How'd they do it? Pricing power. Net sales per hectoliter jumped 5.1% on a reported basis and 3.1% in constant currency. That more than made up for a 2.9% decline in financial volume, which the company blamed on lower shipments across the Americas, EMEA, and APAC segments. Brand volumes fell 3.1%, including a 3% drop in the Americas.
CEO Rahul Goyal framed the quarter as a sign that the company's long-term strategy is working. "Under Horizon 2030, we said we'd take decisive action to strengthen our business, and we did just that in the first quarter," he said, pointing to the acquisition of Monaco Cocktails, a disciplined approach to portfolio gaps, and an expanded share-repurchase program.
On the balance sheet, total debt stood at $6.271 billion as of March 31, with cash and equivalents of $382.6 million.
Looking ahead, Molson Coors kept its 2026 guidance unchanged. It still expects adjusted earnings of $4.61 to $4.82 per share, compared with the analyst consensus of $4.73. Full-year revenue is projected at $11.029 billion to $11.252 billion, versus the $11.121 billion consensus.
The company also reiterated its expectations for underlying income before taxes to decline 15% to 18% on a constant-currency basis in 2026. Capital expenditures are seen at about $650 million, with free cash flow of roughly $1.1 billion and depreciation of around $720 million. Net interest expense is expected to be about $260 million, and the underlying effective tax rate should land between 22% and 24%.
"We remain disciplined in capital deployment and are committed to driving shareholder value through investing in our business while continuing to return cash to shareholders through a growing dividend and share repurchases," the company said.
Shares of Molson Coors were up 3.02% at $43.68 at the time of publication Thursday.
