Molson Coors net sales increased +10.7% (+10.1% in constant currency) in Q1 2024, as the company continues to record volume growth from its core brands, the company reported today.
Coors Light and Coors Banquet each recorded double-digit volume growth in the quarter, while Miller Lite posted high-single-digit volume growth. Q1 underlying income before income taxes also increased +68.8%, to $265.4 million.
“We remain confident in our business and our strategy, but incrementally more cautious on the outlook for the industry this year given early April industry performance,” the company said in a press release.
Net sales in the Americas increased +10.6%, with income increasing +37.4% and underlying income increasing +37.3%.
Shipments (sales to wholesalers) in the Americas increased +7.5% “primarily due to an increase in U.S. volumes driven by volume growth in our ore brands, partially offset by lower contract brewing volume.” Depletions also increased +5.3% – +5.8% in the U.S. alone – but fell behind shipments by 750,000 hectoliters “driven by the accelerated building of distributor inventory levels to support the peak summer selling seasons and to mitigate the impact of the Fort Worth brewery strike that commenced in mid-February.”
For context, in Q1 2023, shipments outpaced depletions by only 100,000 hectoliters. Molson Coors expects depletions to outpace shipments for the remaining three quarters of 2024.
Molson Coors reiterated its full-year 2024 guidance, with net sales growth in the low-single-digits and underlying income growth in the mid-single-digits.
Molson Coors chief communications and corporate affairs officer Adam Collins offered additional information in a supplemental release, including that Coors Light and Miller Lite shelf space increased +13% across large format grocery and c-stores during spring resets. Molson Coors expects its core brands to also grow distribution this year, with Coors Banquet alone to increase distribution nearly +20%.
Additionally, weekly displays for Molson Coors’ brands in Circana-tracked channels increased in the four-week period ending April 14 – Coors Light +7.5%, Coors Banquet +3.8%, Miller Lite +3.9% – “all adding up to thousands of incremental displays,” Collins said in an email shared last week.
“The gains we saw in 2023 were unprecedented, yet consumer trends have held, and serve as the new foundation for growth,” Collins said in the latest report. “Couple that with our strong plans for 2024, and we are confident that we will grow our business for a third consecutive year. And that’s exactly why we reiterated guidance this morning.”
Q1 share growth was similar to share gains in the second half of 2023, and Molson Coors’ absolute share has “held steady” in the first few weeks of Q2.
“Three weeks into cycling last year’s upheaval we objectively know that consumer trends have held, there has been no reversion and we believe our gains are permanent,” Collins said.
“In 2024, we’re making clear to our distributor partners and retailers that we’re investing in our brands – and the message is landing,” he continued. “Crossed with consumer demand, it’s a recipe for not only increased shelf space, but growing display space, which is some of the most coveted real estate in stores.
“We believe that growth shows not only consumer confidence, but retailer confidence, and it couldn’t come at a better time as we head into peak summer selling season. What’s more, we have reason to believe we can build on this momentum as we have a big systemwide push to get more Coors Light and Miller Lite displays on the floor starting this month.”
Stay tuned for coverage of Molson Coors’ call with investors and analysts.