Latest news with #ConsumerSentimentIndex
Yahoo
5 hours ago
- Business
- Yahoo
TAP Q1 Earnings Call: Molson Coors Addresses Macroeconomic Pressures and Strategic Adjustments
Beer company Molson Coors (NYSE:TAP) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 11.3% year on year to $2.3 billion. Its non-GAAP EPS of $0.50 per share was 37.2% below analysts' consensus estimates. Is now the time to buy TAP? Find out in our full research report (it's free). Revenue: $2.3 billion (11.3% year-on-year decline) Adjusted EPS: $0.50 vs analyst expectations of $0.80 (37.2% miss) Operating Margin: 8.1%, down from 12.1% in the same quarter last year Sales Volumes fell 15.6% year on year (5.7% in the same quarter last year) Market Capitalization: $10.68 billion Molson Coors' latest quarter was defined by pronounced declines in sales volumes and operating margins amid a challenging macroeconomic environment. Management attributed the year-on-year drop in financial results to softer consumer demand, ongoing macro volatility, and expected headwinds such as the end of contract brewing agreements and one-time integration costs related to the Fever-Tree partnership. CEO Gavin Hattersley highlighted that the U.S. beer market, in particular, faced larger-than-anticipated declines in consumer confidence, which weighed heavily on consumption trends. While operational disruptions like last year's Fort Worth brewery strike and changes in shipment timing also played a role, Hattersley emphasized, "The magnitude of the impacts of the macroeconomic environment and industry has been much greater so far this year than we had expected." Looking ahead, Molson Coors is adjusting its strategy to navigate ongoing uncertainty in consumer demand and external pressures. Management now expects a low single-digit decline in revenue for the year and is taking steps to reduce capital expenditures and discretionary costs. CFO Tracey Joubert explained that the company's updated outlook is shaped by industry softness and continued macro challenges but is supported by ongoing premiumization initiatives, new product launches, and incremental contributions from partnerships like Fever-Tree and ZOA. Hattersley noted, "These are uncertain times, but we believe we have the right strategy and a healthy balance sheet and strong cash generation to continue to execute it, while continuing to return cash to shareholders." Management cited macroeconomic headwinds, planned operational changes, and a focus on premiumization as primary factors influencing the quarter's results and near-term outlook. Macroeconomic pressures dominate: Management repeatedly referenced the impact of volatile consumer confidence and global economic uncertainty, which led to weaker-than-expected demand across key markets. Hattersley noted that the U.S. beer market experienced a larger decline than anticipated, with the University of Michigan Consumer Sentiment Index dropping sharply during the period. Contract brewing exits weigh on volume: The conclusion of contract brewing agreements with Pabst in the U.S. and Labatt in Canada resulted in a temporary volume headwind that pressured reported sales, though management expects mix and margin benefits in subsequent quarters as the portfolio shifts away from lower-margin contract production. Premiumization and brand investment: Molson Coors continued investing in its core "power brands" (Coors Light, Miller Lite, Coors Banquet) and highlighted growth in above-premium offerings, including the expansion of Peroni and the Blue Moon non-alcoholic line. The company stressed ongoing efforts to capture value from premiumization, aiming for more favorable brand and product mix. Fever-Tree integration and non-alcoholic expansion: The company's recent acquisition of U.S. rights to Fever-Tree and increased stake in ZOA energy drinks were described as strategic moves to expand the non-alcoholic business. Fever-Tree's addition was called 'immediately incremental' to Molson Coors' U.S. business, with management citing significant distribution upside. Disciplined cost management: Facing lower volumes and profitability, management prioritized cost savings by curtailing non-critical discretionary spending and reducing planned capital expenditures by $100 million, postponing projects not directly tied to cost savings or critical growth initiatives. Molson Coors' outlook for the coming quarters centers on cautious revenue expectations, a continued push for premiumization, and disciplined capital allocation in a volatile environment. Consumer demand uncertainty: Management expects near-term demand to remain pressured by macroeconomic factors but is not forecasting the steep declines seen in Q1 to persist throughout the year. Hattersley indicated that improvement is anticipated in the back half of the year, provided economic conditions stabilize. Premiumization and innovation focus: The company is prioritizing further premiumization of its portfolio in North America, EMEA, and APAC, with special attention on the rollout of Peroni, Blue Moon innovations, and the continued momentum of non-alcoholic offerings. Management views these initiatives as vital for margin recovery and long-term growth. Cost control and capital discipline: Molson Coors is tightening control over discretionary expenses and reducing capital expenditures, focusing investment on projects linked to productivity, cost savings, and critical brand support. The company reiterated its commitment to maintaining healthy free cash flow and returning capital to shareholders. In the coming quarters, our analysts will monitor (1) volume trends and consumer demand stabilization in North America and Europe; (2) the pace and effectiveness of premiumization strategies, especially for brands like Peroni, Blue Moon, and Fever-Tree; and (3) the execution of cost control measures and capital allocation discipline. Leadership transition progress and the impact of new product launches will also be key areas to watch. Molson Coors currently trades at a forward P/E ratio of 8.2×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Daily Express
2 days ago
- Business
- Daily Express
Ringgit strengthens against greenback as Trump administration pushes disruptive trade policies
Published on: Wednesday, June 04, 2025 Published on: Wed, Jun 04, 2025 By: Bernama Text Size: At 8 am, the local note inched higher to 4.2370/2640 versus the greenback from Tuesday's close of 4.2425/2485. Kuala Lumpur: The ringgit continued to strengthen against the US dollar on Wednesday, as the US economy is perceived as fragile amid the Trump administration's continued push for disruptive trade policies. At 8 am, the local note inched higher to 4.2370/2640 versus the greenback from Tuesday's close of 4.2425/2485. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to remain strong as the US economy is still seen as fragile, according to survey data such as the US Institute for Supply Management (ISM) Index and Consumer Sentiment Index. 'The data indicates business and consumers have become more cautious in their spending going forward as the Trump administration pushes forward their agenda on trade policies that are hostile and disruptive to global supply chains,' he told Bernama. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, said the US dollar index (DXY) climbed to 99.2 from 98.9. 'Improved US labour data is lending support to the greenback. Job openings rose to 7.4 million in April, exceeding forecasts of 7.1 million. 'Wage growth is expected to continue outstripping inflation on average, which should underpin consumer spending and broader economic momentum,' he said. Mohd Sedek said greater clarity on the US labour market will come with Friday's nonfarm payrolls report. At the opening, the ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.9456/9646 from Tuesday's close of 2.9695/9739, climbed vis-à-vis the euro to 4.8234/8541 from 4.8415/8484, and inched up against the British pound to 5.7331/7696 from 5.7337/7418 previously. Against its ASEAN peers, the ringgit rose against the Singapore dollar to 3.2868/3082 from 3.2967/3016 on Tuesday's close and improved vis-à-vis the Thai baht to 12.9786/13.0777 from 13.0334/0603 previously. It was slightly higher versus the Indonesian rupiah, at 259.7/261.5, compared to 260.1/260.6 on yesterday's close, and gained against the Philippine peso to 7.60/7.66 from 7.61/7.63 previously. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
2 days ago
- Business
- The Star
Ringgit strengthens against greenback as Trump administration pushes disruptive trade policies
KUALA LUMPUR: The ringgit continued to strengthen against the US dollar on Wednesday, as the US economy is perceived as fragile amid the Trump administration's continued push for disruptive trade policies. At 8 am, the local note inched higher to 4.2370/2640 versus the greenback from Tuesday's close of 4.2425/2485. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to remain strong as the US economy is still seen as fragile, according to survey data such as the US Institute for Supply Management (ISM) Index and Consumer Sentiment Index. "The data indicates business and consumers have become more cautious in their spending going forward as the Trump administration pushes forward their agenda on trade policies that are hostile and disruptive to global supply chains," he told Bernama. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, said the US dollar index (DXY) climbed to 99.2 from 98.9. "Improved US labour data is lending support to the greenback. Job openings rose to 7.4 million in April, exceeding forecasts of 7.1 million. "Wage growth is expected to continue outstripping inflation on average, which should underpin consumer spending and broader economic momentum," he said. Mohd Sedek said greater clarity on the US labour market will come with Friday's nonfarm payrolls report. At the opening, the ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.9456/9646 from Tuesday's close of 2.9695/9739, climbed vis-à-vis the euro to 4.8234/8541 from 4.8415/8484, and inched up against the British pound to 5.7331/7696 from 5.7337/7418 previously. Against its ASEAN peers, the ringgit rose against the Singapore dollar to 3.2868/3082 from 3.2967/3016 on Tuesday's close and improved vis-à-vis the Thai baht to 12.9786/13.0777 from 13.0334/0603 previously. It was slightly higher versus the Indonesian rupiah, at 259.7/261.5, compared to 260.1/260.6 on yesterday's close, and gained against the Philippine peso to 7.60/7.66 from 7.61/7.63 previously. - Bernama
The Sun
2 days ago
- Business
- The Sun
Ringgit strengthens against greenback as Trump administration pushes disruptive trade policies
KUALA LUMPUR: The ringgit continued to strengthen against the US dollar on Wednesday, as the US economy is perceived as fragile amid the Trump administration's continued push for disruptive trade policies. At 8 am, the local note inched higher to 4.2370/2640 versus the greenback from Tuesday's close of 4.2425/2485. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to remain strong as the US economy is still seen as fragile, according to survey data such as the US Institute for Supply Management (ISM) Index and Consumer Sentiment Index. 'The data indicates business and consumers have become more cautious in their spending going forward as the Trump administration pushes forward their agenda on trade policies that are hostile and disruptive to global supply chains,' he told Bernama. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, said the US dollar index (DXY) climbed to 99.2 from 98.9. 'Improved US labour data is lending support to the greenback. Job openings rose to 7.4 million in April, exceeding forecasts of 7.1 million. 'Wage growth is expected to continue outstripping inflation on average, which should underpin consumer spending and broader economic momentum,' he said. Mohd Sedek said greater clarity on the US labour market will come with Friday's nonfarm payrolls report. At the opening, the ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.9456/9646 from Tuesday's close of 2.9695/9739, climbed vis-à-vis the euro to 4.8234/8541 from 4.8415/8484, and inched up against the British pound to 5.7331/7696 from 5.7337/7418 previously. Against its ASEAN peers, the ringgit rose against the Singapore dollar to 3.2868/3082 from 3.2967/3016 on Tuesday's close and improved vis-à-vis the Thai baht to 12.9786/13.0777 from 13.0334/0603 previously. It was slightly higher versus the Indonesian rupiah, at 259.7/261.5, compared to 260.1/260.6 on yesterday's close, and gained against the Philippine peso to 7.60/7.66 from 7.61/7.63 previously.
The Sun
2 days ago
- Business
- The Sun
Ringgit strengthens against greenback
KUALA LUMPUR: The ringgit continued to strengthen against the US dollar on Wednesday, as the US economy is perceived as fragile amid the Trump administration's continued push for disruptive trade policies. At 8 am, the local note inched higher to 4.2370/2640 versus the greenback from Tuesday's close of 4.2425/2485. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to remain strong as the US economy is still seen as fragile, according to survey data such as the US Institute for Supply Management (ISM) Index and Consumer Sentiment Index. 'The data indicates business and consumers have become more cautious in their spending going forward as the Trump administration pushes forward their agenda on trade policies that are hostile and disruptive to global supply chains,' he told Bernama. Meanwhile, UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, said the US dollar index (DXY) climbed to 99.2 from 98.9. 'Improved US labour data is lending support to the greenback. Job openings rose to 7.4 million in April, exceeding forecasts of 7.1 million. 'Wage growth is expected to continue outstripping inflation on average, which should underpin consumer spending and broader economic momentum,' he said. Mohd Sedek said greater clarity on the US labour market will come with Friday's nonfarm payrolls report. At the opening, the ringgit traded higher against a basket of major currencies. It rose against the Japanese yen to 2.9456/9646 from Tuesday's close of 2.9695/9739, climbed vis-à-vis the euro to 4.8234/8541 from 4.8415/8484, and inched up against the British pound to 5.7331/7696 from 5.7337/7418 previously. Against its ASEAN peers, the ringgit rose against the Singapore dollar to 3.2868/3082 from 3.2967/3016 on Tuesday's close and improved vis-à-vis the Thai baht to 12.9786/13.0777 from 13.0334/0603 previously. It was slightly higher versus the Indonesian rupiah, at 259.7/261.5, compared to 260.1/260.6 on yesterday's close, and gained against the Philippine peso to 7.60/7.66 from 7.61/7.63 previously.
