Molson Coors Beverage CompanyTAP posted impressive first-quarter 2026 results, with both top and bottom lines increasing year over year and surpassing the Zacks Consensus Estimate.
The company’s adjusted earnings of 62 cents per share increased 24.0% year over year and were well ahead of the Zacks Consensus Estimate of 36 cents.
Molson Coors Beverage Company Price, Consensus and EPS Surprise
Molson Coors Beverage Company price-consensus-eps-surprise-chart | Molson Coors Beverage Company Quote
Net sales rose 2.0% from a year ago to $2,351 million, topping the consensus mark of $2,329 million by 0.94%. The growth was driven by favorable price and sales mix and favorable foreign currency, somewhat offset by lower financial volumes. Net sales rose 0.4% in constant currency basis.
TAP’s first-quarter results reflected a solid start to the year as the company advanced its Horizon 2030 strategy amid a volatile macro backdrop and limited near-term visibility. Management highlighted decisive actions to strengthen the business, including the acquisition of Monaco Cocktails to address a portfolio gap and an expanded share-repurchase program to underscore confidence in long-term value.
Molson Coors’ Q1 Details
Financial volumes decreased 2.9% year over year due to lower shipments across the Americas and EMEA&APAC segments. Brand volumes fell 3.1%, with a 3% dip in the Americas and a 3.4% decline in the EMEA&APAC segment.
Net sales were positively influenced by the price and sales mix, which increased 3% year over year, driven by a favorable sales mix and higher net pricing in the Americas segment. Net sales per hectoliter (hl) rose 5.1% on a reported basis and 3.1% on a constant-currency basis.
Gross profit increased 5.4% year over year to $897.2 billion, and the gross margin rose 130 basis points (bps) to 33% in the quarter.
Marketing, general and administrative expenses (MG&A) declined to $610.0 million from $653.2 million a year ago, a 6.6% reduction on a reported basis. On an underlying basis, MG&A decreased 9.1% in constant currency, highlighting a cleaner operating cost base entering the core selling season.
The main benefits came from lapping roughly $30 million of integration and transition costs tied to the prior-year Fevertree USA transaction and lower employee-related costs linked to the Americas restructuring plan. These positives were partly offset by incremental spending on the company’s global modernization ERP implementation.
Underlying earnings before taxes (EBT) increased 16.2% year over year to $147.9 million on a constant-currency basis, led by lower marketing, general and administrative expenses, increased net pricing in the Americas segment and a favorable mix from premiumization across both the Americas and EMEA&APAC. These gains were partly offset by material and manufacturing cost inflation, including an approximate $30 million headwind from Midwest Premium pricing, as well as lower financial volume.
TAP’s Segmental Information
Americas:Net sales in the segment fell 1% year over year to $1.9 billion on a reported basis and also 0.4% on a constant-currency basis. The growth was due to favorable price and sales mix and favorable foreign currency impacts, somewhat offset by lower financial volume. Sales in the segment came ahead of the Zacks Consensus Estimate of $1.88 billion.
Americas financial volume declined 2.7%, mainly reflecting weaker U.S. volumes tied to share losses in the core and value portfolios, partially offset by favorable shipment timing. Americas brand volume fell 3.0%, including a 3.5% drop in the United States, due to softer share performance in core and value segments. Canada brand volume decreased 4.0%, primarily due to broader industry softness.
Price and sales mix lifted net sales by 3.1%, driven mainly by a stronger sales mix from improved brand mix, along with higher net pricing. Net sales per hectoliter rose 3.8% on a reported basis and 3.2% in constant currency.
EMEA & APAC:The segment’s net sales rose 6.7% year over year to $456.1 million on a reported basis and declined 1.2% on a constant-currency basis. Reported sales benefited from an improved price and sales mix, and favorable currency effects, partially offset by lower financial volumes. The price and sales mix improved 2.3%, driven by premiumization. The Zacks Consensus Estimate for the segment’s sales was pegged at $461 million.
Financial and brand volumes slipped 3.5% and 3.4%, respectively, mainly because volumes in the United Kingdom declined amid weaker consumer demand and a more intense competitive environment. The segment’s underlying EBT increased 47.4% year over year on a constant-currency basis, driven by lower financial volume and cost inflation related to materials and manufacturing expenses.
Financial Updates for TAP
Molson Coors ended the first quarter with cash and cash equivalents of $382.6 million. As of March 31, 2026, the company had a total debt of $6.27 billion, resulting in a net debt of $5.89 billion.
Net cash provided by operating activities amounted to $2.5 million in the first quarter of 2026. Moreover, the underlying free cash flow was a cash outflow of $212.9 million for the three months ended March 31, 2026, improving by $51.7 million from the year-ago period. The smaller outflow primarily reflected stronger operating cash flow and reduced capital spending.
During first-quarter 2026, TAP spent $168.5 million on share repurchases (including brokerage commissions), up from $59.6 million in the year-ago quarter.
What to Expect From TAP in 2026?
For 2026, Molson Coors expects net sales to be broadly flat on a constant-currency basis, within a range of plus or minus 1% compared with 2025. Underlying EBT is anticipated to decline in the range of 15-18%, while underlying EPS is anticipated to decrease 11-15%.
It expects underlying depreciation and amortization to be $720 million, plus or minus 5%. The company forecasts an underlying effective tax rate of 22-24% for 2026. Underlying net interest expenses are anticipated to be $260 million (plus or minus 5%).
The company estimates a capital expenditure of $650 million (plus or minus 5%) for 2026. The underlying free cash flow is expected to be $1.1 billion, plus or minus 10%.
Management also flagged quarterly volatility in the U.S., with second-quarter financial volumes expected to be 6-9% lower than 2025 and Midwest Premium inflation anticipated to be most pronounced in second quarter 2026.
Shares of this Zacks Rank #4 (Sell) company have lost 11.7% in the past three months compared with the industry’s 3.8% decline.
TAP Stock's Price Performance
Image Source: Zacks Investment Research
Stocks to Consider
Post Holdings, Inc.POST operates as a consumer-packaged goods holding company in the United States and internationally. At present, POST holds a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago figures. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average.
Tyson Foods, Inc.TSN operates as a food company worldwide. It currently has a Zacks Rank #2. Tyson Foods delivered a trailing four-quarter earnings surprise of 16.5%, on average.
The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales indicates growth of 4.4% from the prior-year’s reported levels.
Ambev S.A.ABEV engages in the production, distribution, and sale of beer, draft beer, soft drinks, malt and food, and other beverages. ABEV currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for ABEV’s current fiscal-year sales and earnings indicates growth of 14.7% and 5.6%, respectively.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
Post Holdings, Inc. (POST) : Free Stock Analysis Report
Ambev S.A. (ABEV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
