Molson Coors Beverage Company ( TAP/A ) shares are trading lower on Thursday after the company reported first-quarter results.

The company reported adjusted earnings per share of 50 cents, missing the Street view of 83 cents. Quarterly sales of $2.30 billion missed the analyst consensus of $2.41 billion.

Net sales decreased 11.3% reported and 10.4% in constant currency. Price and sales mix favorably impacted net sales by 4.1%.

Financial volumes dropped 15.6% in the quarter. This was mainly due to lower brand volumes and prior-year inventory build.

Also Read: This Beverage Maker, Tobacco Company And Packaged Food Giant Outshine In A Recession

Exiting U.S. and Canada contract brewing cut volume by around 4%.

Molson Coors ( TAP/A ) said its underlying EBITDA (Non-GAAP) was $353.3 million, compared with $476.2 million in the year-ago period.

CEO Gavin Hattersley said the company’s first-quarter results were affected by macroeconomic challenges, competitive pressures in EMEA & APAC, and anticipated headwinds such as last year’s U.S. inventory build, the end of contract brewing in the Americas, and Fever-Tree transition fees.

“Uncertainty around the effects of geopolitical events and global trade policy, including the impacts on economic growth, consumer confidence and expectations around inflation, and currencies has pressured the beer industry and consumption trends,” Hattersley said.

Total debt as of March 31 was $6.237 billion, and cash and equivalents totaled $412.7 million.

Outlook: For FY25, the company projects a low single-digit decrease of net sales year over year on a constant currency basis (prior view: low single-digit increase)

For adjusted earnings per share, the firm projects a low single-digit increase on a year-over-year basis (prior view: high single-digit increase).

Price Action: TAP shares are trading lower by 4.68% to $54.18 at last check Thursday.

Read Next:

Forget Rate Cuts This Year, Bank Of America Warns After Powell’s Hawkish Tone

Image: Shutterstock