Achieved or Exceeded All Full Year Guidance
Metrics
Fourth Quarter Net Sales Declined 2.0%
Resulting in 0.6% Decline for Full Year, Achieving Revised Full
Year Guidance
Full Year Income before Income Taxes Improved
20.0%; Full Year Underlying Income before Income Taxes Increased
5.6% on a Constant Currency Basis, Achieving Full Year Guidance
Full Year EPS Grew 22.4% to $5.35; Full Year
Underlying EPS Grew 9.8% to $5.96 Exceeding Full Year Guidance
Fiscal 2025 Guidance Aligned with Long-Term
Growth Algorithm for both Top-Line and Bottom-Line
Molson Coors Beverage Company ("MCBC," "Molson Coors" or "the
Company") (NYSE: TAP, TAP.A; TSX: TPX.A, TPX.B) today reported
results for the 2024 fourth quarter and full year.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20250213598142/en/
2024 FOURTH QUARTER FINANCIAL HIGHLIGHTS1
- Net sales decreased 2.0% reported and 1.9% in constant
currency.
- U.S. GAAP income before income taxes increased 109.2% to $346.3
million.
- Underlying (Non-GAAP) income before income taxes decreased 0.9%
in constant currency to $341.0 million.
2024 FULL YEAR FINANCIAL HIGHLIGHTS1
- Net sales decreased 0.6%.
- U.S. GAAP income before income taxes improved 20.0% to $1,503.0
million.
- Underlying (Non-GAAP) income before income taxes increased 5.6%
in constant currency to $1,610.5 million.
- U.S. GAAP net income attributable to MCBC of $1,122.4 million,
$5.35 per share on a diluted basis. Underlying (Non-GAAP) diluted
EPS of $5.96 per share increased 9.8%.
- Net cash provided by operating activities of $1,910.3 million
and Underlying (Non-GAAP) Free Cash Flow of $1,240.6 million.
- Cash paid for share repurchases of $643.4 million compared to
$205.8 million in the prior year.
_____________________ 1 See Appendix for definitions and
reconciliations of non-GAAP financial measures including constant
currency.
CEO AND CFO PERSPECTIVES
2024 marks our third consecutive year of bottom-line growth for
Molson Coors while we continued to advance our strategic
priorities, delivered strong cash generation and returned over $1
billion in cash to shareholders.
Our EMEA&APAC segment performed strongly as did Canada
within our Americas segment, while the U.S. was challenged given
the macroeconomic environment along with the wind down of a
contract brewing agreement that contributed a negative 3% impact on
Americas financial volume for the year.
We continued to support the health of our key brands globally.
Collectively, our core power brands in the U.S. retained a
substantial portion of the step change in share gains achieved in
2023. According to Circana, in the fourth quarter, Coors Light,
Miller Lite and Coors Banquet retained over 80% of their combined
volume share gains of industry versus a year ago which is an
improvement over the second and third quarters. These brands were
up 1.7 share points compared to the fourth quarter of 2022.
In Canada, Coors Light remained the number one light beer in the
industry and again grew share of segment in the fourth quarter of
2024 amid a challenging industry backdrop.
In EMEA&APAC, Ožjusko, the market leader in Croatia, along
with the successful launch of legacy brand Caraiman in Romania
helped to offset some impact of the increasingly competitive
environment for Carling in the U.K.
We continued to premiumize our portfolio in EMEA&APAC with
the continued growth behind Madrí in the U.K. In the Americas,
Canada also continued to premiumize led by Miller Lite, while in
the U.S. we implemented targeted ongoing efforts around the Blue
Moon family and other above premium products to curtail the losses
and change the trajectory to growth.
With strong cash flow, we continued to prudently deploy our
capital in ways that we believe support the achievement of our
long-term growth algorithm in 2025 and beyond.
Gavin Hattersley, President and Chief
Executive Officer Statement:
“2024 was another year of progress for Molson
Coors. We continued to advance our strategy and achieved another
year of bottom-line growth. Amid a challenging macroeconomic
environment, we continued to support the health of our brands
globally and premiumize our business in several markets while
developing plans for premiumization in the U.S. in 2025. We enter
this year confident, issuing 2025 guidance that both reflects our
confidence in our business and that aligns with our long-term
growth algorithm."
Tracey Joubert, Chief Financial Officer
Statement:
“We continued to enhance our profitability
and financial flexibility in 2024. We ended the year with a net
debt to underlying EBITDA ratio of 2.09 times, in alignment with
our long-term target of under 2.5 times. This, along with our
strong cash generation, enabled us to invest in the business in
ways we believe drive sustainable, profitable growth while
returning cash to shareholders through a growing dividend and share
repurchases."
CONSOLIDATED PERFORMANCE - FOURTH QUARTER AND FULL YEAR
2024
For the three months
ended
($ in millions, except per share data)
(Unaudited)
December 31, 2024
December 31, 2023
Reported Increase
(Decrease)
Foreign Exchange
Impact
Constant Currency Increase
(Decrease)(1)
Net sales
$
2,735.6
$
2,790.8
(2.0
)%
$
(3.2
)
(1.9
)%
U.S. GAAP income (loss) before income
taxes
$
346.3
$
165.5
109.2
%
$
(1.9
)
110.4
%
Underlying income (loss) before income
taxes(1)
$
341.0
$
345.8
(1.4
)%
$
(1.6
)
(0.9
)%
U.S. GAAP net income (loss)(2)
$
287.8
$
103.3
178.6
%
Per diluted share
$
1.39
$
0.48
189.6
%
Underlying net income (loss)(1)
$
268.6
$
257.4
4.4
%
Per diluted share
$
1.30
$
1.19
9.2
%
Financial volume(3)
18.585
19.849
(6.4
)%
Brand volume(3)
18.870
19.532
(3.4
)%
For the years ended
($ in millions, except per share data)
(Unaudited)
December 31, 2024
December 31, 2023
Reported Increase
(Decrease)
Foreign Exchange
Impact
Constant Currency Increase
(Decrease)(1)
Net sales
$
11,627.0
$
11,702.1
(0.6
)%
$
(1.6
)
(0.6
)%
U.S. GAAP income (loss) before income
taxes
$
1,503.0
$
1,252.5
20.0
%
$
(7.0
)
20.6
%
Underlying income (loss) before income
taxes(1)
$
1,610.5
$
1,531.2
5.2
%
$
(6.8
)
5.6
%
U.S. GAAP net income (loss)(2)(4)
$
1,122.4
$
948.9
18.3
%
Per diluted share
$
5.35
$
4.37
22.4
%
Underlying net income (loss)(1)
$
1,250.0
$
1,179.4
6.0
%
Per diluted share
$
5.96
$
5.43
9.8
%
Financial volume(3)
79.618
83.772
(5.0
)%
Brand volume(3)
78.816
80.857
(2.5
)%
(1)
Represents income (loss) before
income taxes and net income (loss) attributable to MCBC adjusted
for non-GAAP items. See Appendix for definitions and
reconciliations of non-GAAP financial measures including constant
currency.
(2)
Net income (loss) attributable to
MCBC.
(3)
See Worldwide and Segmented Brand
and Financial Volume in the Appendix for definitions of financial
volume and brand volume as well as the reconciliation from
financial volume to brand volume.
(4)
During the third quarter of 2024,
we identified certain errors in the historical accounting for
noncontrolling interest ("NCI") with redemption features outside of
our control under the terms of our Cobra Beer Partnership, Ltd.
("Cobra U.K." or "CBPL") partnership agreement and within certain
other immaterial investments. Since the inception of these
partnerships dating back to as early as 2002, we had historically
accounted for the NCI within permanent equity with no adjustments
to redemption value. Rather, our partners' shares should have been
presented as redeemable NCI through the date of exercise of the
redemption feature, with adjustments to the redemption value being
recorded each reporting period as necessary. Furthermore, in March
2024, our CBPL partner exercised its put option requiring us to
acquire their 49.9% ownership interest. Since the exercise was
irrevocable, the NCI became mandatorily redeemable at that time and
should have been reclassified to accounts payable and other current
liabilities. These errors resulted in a reclassification of $65
million from noncontrolling interests, of which $49 million was
reclassified to accounts payable and other current liabilities for
CBPL and $16 million was reclassified to redeemable noncontrolling
interests for the other immaterial investments in our consolidated
balance sheets. In addition, the errors resulted in a cumulative
understatement of $34.5 million to net income attributable to NCI
and a corresponding cumulative overstatement to net income
attributable to MCBC in our consolidated statements of operations.
The errors were corrected through an out of period adjustment as of
and for the three months ended September 30, 2024. Management
assessed the impact of the errors and deemed them to not be
material to any prior periods or 2024 results. In October 2024, we
obtained the final redemption value and as a result, during the
third quarter of 2024, we recorded an adjustment of $45.8 million
to increase the mandatorily redeemable NCI liability, with the
adjustment recorded to interest expense.
QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS FOURTH QUARTER 2023
RESULTS)
- Net sales: The following table highlights the drivers of
the change in net sales for the three months ended December 31,
2024, compared to December 31, 2023 (in percentages):
Net Sales Drivers
(unaudited)
Financial volume
(6.4
)%
Price and sales mix
4.5
%
Currency
(0.1
)%
Total consolidated net sales
(2.0
)%
Net sales decreased 2.0%, driven by lower
financial volumes and unfavorable foreign currency impacts,
partially offset by favorable price and sales mix. Net sales
decreased 1.9% in constant currency.
Financial volumes decreased 6.4%, primarily
due to lower shipments in both segments including lower contract
brewing volumes in the Americas. Brand volumes decreased 3.4%,
including a 6.9% decrease in EMEA&APAC as well as a 2.2%
decrease in the Americas.
Price and sales mix favorably impacted net
sales by 4.5%, primarily due to favorable sales mix for both
segments, including as a result of lower contract brewing volumes
in the U.S. as well as increased net pricing.
- Cost of goods sold ("COGS"): decreased 3.4% on a
reported basis, primarily due to lower financial volumes, partially
offset by higher cost of goods sold per hectoliter. Cost of
goods sold per hectoliter: increased 3.2% on a reported basis,
primarily due to cost inflation related to materials and
manufacturing expenses, unfavorable mix in both segments and volume
deleverage in the Americas segment, partially offset by favorable
changes in our unrealized mark-to-market commodity derivative
positions of $23.3 million and cost saving initiatives.
Underlying (Non-GAAP) COGS per hectoliter: increased 5.1% in
constant currency primarily due to cost inflation related to
materials and manufacturing expenses, unfavorable mix in both
segments and volume deleverage in the Americas segment, partially
offset by cost saving initiatives.
- Marketing, general & administrative ("MG&A"):
decreased 4.9% on a reported basis, primarily due to lower
marketing resulting from the cycling of higher investment levels in
the prior year, lower incentive compensation expense and the
favorable impact of foreign currency movements. Underlying
(Non-GAAP) MG&A: decreased 4.4% in constant currency.
- Other operating income (expense), net: Other operating
expense, net improved 96.0% on a reported basis, primarily due to
the cycling of a $160.7 million partial impairment charge to our
indefinite-lived intangible asset related to the Staropramen family
of brands recorded in the prior year as well as the recording of a
$77.9 million gain recognized upon the consolidation of ZOA in the
fourth quarter of 2024, partially offset by costs incurred related
to the exit of certain U.S. craft businesses and related
restructuring costs including accelerated depreciation charges in
excess of normal depreciation of $83.7 million.
- U.S. GAAP income (loss) before income taxes: U.S. GAAP
income before income taxes increased 109.2% on a reported basis,
primarily due to lower other operating expense, net, favorable
sales mix, increased net pricing, lower MG&A expense and
favorable changes in our unrealized mark-to-market commodity
derivative positions of $23.3 million, partially offset by lower
financial volumes and cost inflation related to materials and
manufacturing expenses.
- Underlying (Non-GAAP) income (loss) before income taxes:
Underlying income before income taxes declined 0.9% in constant
currency, primarily due to lower financial volumes and cost
inflation related to materials and manufacturing expenses,
partially offset by favorable sales mix, increased net pricing and
lower MG&A expense.
- Net income (loss) attributable to MCBC per diluted
share: Net income attributable to MCBC per diluted share
improved 189.6% primarily due to an increase in U.S. GAAP income
before income taxes, a decrease in the effective tax rate and a
decrease in the weighted average diluted shares outstanding driven
by share repurchases.
- Underlying (Non-GAAP) net income (loss) attributable to MCBC
per diluted share: Underlying net income attributable to MCBC
per diluted share improved 9.2% primarily due to a decrease in the
underlying effective tax rate and a decrease in the weighted
average diluted shares outstanding driven by share repurchases,
partially offset by a decrease in underlying income before income
taxes.
QUARTERLY SEGMENT HIGHLIGHTS (VERSUS FOURTH QUARTER 2023
RESULTS)
Americas Segment Overview
The following table highlights the Americas segment results for
the three months and year ended December 31, 2024 compared to
December 31, 2023.
For the three months
ended
($ in millions, except per share data)
(Unaudited)
December 31, 2024
December 31, 2023
Reported % Change
FX Impact
Constant Currency % Change
(2)
Net sales(1)
$
2,173.9
$
2,231.1
(2.6
)%
$
(8.4
)
(2.2
)%
Income (loss) before income taxes(1)
$
361.8
$
362.5
(0.2
)%
$
(3.1
)
0.7
%
Underlying income (loss) before income
taxes (1)(2)
$
362.0
$
363.0
(0.3
)%
$
(2.7
)
0.5
%
For the years ended
($ in millions, except per share data)
(Unaudited)
December 31, 2024
December 31, 2023
Reported % Change
FX Impact
Constant Currency % Change
(2)
Net sales(1)
$
9,240.2
$
9,425.2
(2.0
)%
$
(21.9
)
(1.7
)%
Income (loss) before income taxes(1)
$
1,523.3
$
1,566.7
(2.8
)%
$
(7.0
)
(2.3
)%
Underlying income (loss) before income
taxes (1)(2)
$
1,590.3
$
1,578.6
0.7
%
$
(6.6
)
1.2
%
The reported percent change and the constant currency percent
change in the above table are presented as (unfavorable)
favorable.
(1)
Includes gross inter-segment
volumes, sales and purchases, which are eliminated in the
consolidated totals.
(2)
Represents income (loss) before
income taxes adjusted for non-GAAP items. See Appendix for
definitions and reconciliations of non-GAAP financial measures
including constant currency.
Americas Segment Highlights (Versus Fourth Quarter 2023
Results)
- Net sales: The following table highlights the drivers of
the change in net sales for the three months ended December 31,
2024 compared to December 31, 2023 (in percentages):
Net Sales Drivers
(unaudited)
Financial volume
(5.9
)%
Price and sales mix
3.7
%
Currency
(0.4
)%
Total Americas net sales
(2.6
)%
Net sales decreased 2.6%, driven by lower
financial volumes and unfavorable foreign currency impacts,
partially offset by favorable price and sales mix. Net sales
decreased 2.2% in constant currency.
Financial volumes decreased 5.9%, primarily
due to lower contract brewing volumes in the U.S. related to the
wind down of a contract brewing arrangement which terminated at the
end of 2024 and contributed to over 50% of the reduction as well as
lower U.S. brand volumes. Americas brand volumes decreased 2.2%,
including a 3.0% decrease in U.S. brand volumes driven by lower
above premium volumes and the cycling of double-digit growth in our
core power brands in the prior year, partially offset by one
additional trading day in the current quarter. Canada brand volumes
increased 2.6% driven by our above premium portfolio.
Price and sales mix favorably impacted net
sales by 3.7%, primarily due to favorable sales mix as a result of
lower contract brewing volumes and increased net pricing.
- U.S. GAAP income (loss) before income taxes: U.S. GAAP
income before income taxes declined 0.2% on a reported basis,
primarily due to higher other operating expense, net, lower
financial volumes, cost inflation related to materials and
manufacturing expenses, partially offset by favorable sales mix,
increased net pricing, lower MG&A expense and cost saving
initiatives. Higher other operating expense, net was a result of
the wind down and sale of certain U.S. craft businesses and related
restructuring costs, including accelerated depreciation charges in
excess of normal depreciation of $83.7 million, partially offset by
a $77.9 million gain recognized upon the consolidation of ZOA in
the fourth quarter of 2024. Lower MG&A expense was driven by
cycling higher marketing investment in the prior year.
- Underlying (Non-GAAP) income (loss) before income taxes:
Underlying income before income taxes improved 0.5% in constant
currency, primarily due to favorable sales mix, increased net
pricing, lower MG&A expense and cost savings initiatives,
partially offset by lower financial volumes and cost inflation
related to materials and manufacturing expenses.
EMEA&APAC Segment Overview
The following table highlights the EMEA&APAC segment results
for the three months and year ended December 31, 2024 compared to
December 31, 2023.
For the three months
ended
($ in millions, except per share data)
(Unaudited)
December 31, 2024
December 31, 2023
Reported % Change
FX Impact
Constant Currency % Change
(2)
Net Sales(1)
$
568.7
$
566.6
0.4
%
$
5.2
(0.5
)%
Income (loss) before income taxes(1)
$
23.5
$
(147.4
)
N/M
$
0.5
N/M
Underlying income (loss) before income
taxes (1)(2)
$
24.2
$
15.3
58.2
%
$
0.5
54.9
%
For the years ended
($ in millions, except per share data)
(Unaudited)
December 31, 2024
December 31, 2023
Reported % Change
FX Impact
Constant Currency % Change
(2)
Net Sales(1)
$
2,411.1
$
2,296.1
5.0
%
$
20.3
4.1
%
Income (loss) before income taxes(1)
$
145.3
$
(41.1
)
N/M
$
(2.3
)
N/M
Underlying income (loss) before income
taxes (1)(2)
$
185.9
$
126.8
46.6
%
$
(2.1
)
48.3
%
The reported percent change and the constant currency percent
change in the above table are presented as (unfavorable)
favorable.
(1)
Includes gross inter-segment
volumes, sales and purchases, which are eliminated in the
consolidated totals.
(2)
Represents income (loss) before
income taxes adjusted for non-GAAP items. See Appendix for
definitions and reconciliations of non-GAAP financial measures
including constant currency.
EMEA&APAC Segment Highlights (Versus Fourth Quarter 2023
Results)
- Net sales: The following table highlights the drivers of
the change in net sales for the three months ended December 31,
2024 compared to December 31, 2023 (in percentages):
Net Sales Drivers
(unaudited)
Financial volume
(7.8
)%
Price and sales mix
7.3
%
Currency
0.9
%
Total EMEA&APAC net sales
0.4
%
Net sales increased 0.4% driven by favorable
price and sales mix as well as favorable foreign currency impacts,
partially offset by lower financial volumes. Net sales decreased
0.5% in constant currency.
Financial volumes decreased 7.8% while brand
volumes decreased 6.9%, driven by lower volumes in Western Europe
due to soft market demand and high promotional activity from the
competition as well as lower volumes in Central and Eastern Europe
due to soft industry demand.
Price and sales mix favorably impacted net
sales by 7.3%, primarily due to favorable sales mix driven by
premiumization as well as favorable channel mix and increased net
pricing.
- U.S. GAAP income (loss) before income taxes: U.S. GAAP
income before income taxes of $23.5 million improved $170.9 million
on a reported basis from a loss in the prior year primarily due to
the cycling of a $160.7 million partial impairment charge to our
indefinite-lived intangible asset related to the Staropramen family
of brands recorded in the prior year, increased net pricing,
favorable sales mix and lower MG&A expense, partially offset by
lower financial volumes. Lower MG&A expense was driven by the
cycling of increased technology investments and administrative
expenses in the prior year.
- Underlying (Non-GAAP) income (loss) before income taxes:
Underlying income before income taxes improved 54.9% in constant
currency primarily due to increased net pricing, favorable sales
mix and lower MG&A, partially offset by lower financial
volumes.
FULL YEAR CONSOLIDATED HIGHLIGHTS (VERSUS 2023
RESULTS)
- Net sales: The following table highlights the drivers of
the change in net sales for the year ended December 31, 2024
compared to December 31, 2023 (in percentages):
Net Sales Drivers
(unaudited)
Financial volume
(5.0
)%
Price and sales mix
4.4
%
Currency
—
%
Total net sales
(0.6
)%
Net sales decreased 0.6% driven by lower
financial volumes, partially offset by favorable price and sales
mix.
Financial volumes decreased 5.0%, due to
lower shipments in the Americas, including lower contract brewing
volumes representing almost half of the decline as well as the
impact of the macroeconomic environment resulting in industry
softness. EMEA&APAC financial volumes also decreased 2.6%.
Brand volumes decreased 2.5%, driven by a decrease in Americas and
EMEA&APAC brand volumes of 3.0% and 1.3%, respectively.
Price and sales mix favorably impacted net
sales by 4.4%, primarily due to increased net pricing and favorable
sales mix for both segments, including as a result of lower
contract brewing volumes in the Americas as well as premiumization
and favorable channel mix in EMEA&APAC.
- Cost of goods sold (COGS): decreased 3.3% on a reported
basis, primarily due to lower financial volumes, partially offset
by higher cost of goods sold per hectoliter. Cost of goods sold
per hectoliter: increased 1.8% primarily due to cost inflation
related to materials and manufacturing expenses, unfavorable mix
driven by lower contract brewing volumes and volume deleverage in
the Americas segment, partially offset by favorable changes in our
unrealized mark-to-market commodity derivative positions of $133.0
million and cost savings initiatives. Underlying (Non-GAAP) COGS
per hectoliter: increased 3.8% in constant currency primarily
due to cost inflation related to materials and manufacturing
expenses, unfavorable mix driven by lower contract brewing volumes
and volume deleverage in the Americas segment, partially offset by
cost savings initiatives.
- Marketing, general & administrative (MG&A):
decreased 2.2% on a reported basis primarily due to lower incentive
compensation expense and lower marketing resulting from cycling
higher investment levels in the prior year. Underlying
MG&A: decreased 2.0% in constant currency.
- Other operating income (expense), net: Other operating
expense, net improved 59.8% on a reported basis, primarily due to
the cycling of a $160.7 million partial impairment charge to our
indefinite-lived intangible asset related to the Staropramen family
of brands recorded in the prior year as well as a $77.9 million
gain recognized upon the consolidation of ZOA in the fourth quarter
of 2024, partially offset by costs incurred related to the wind
down and sale of certain U.S. craft businesses and related
restructuring costs including accelerated depreciation charges in
excess of normal depreciation of $93.6 million as well as a $41.2
million loss on disposal of the sold businesses.
- U.S. GAAP income (loss) before income taxes: U.S. GAAP
income before income taxes improved 20.0% on a reported basis,
primarily due to increased net pricing, favorable changes in our
unrealized mark-to-market commodity derivative positions of $133.0
million, favorable sales mix, lower other operating expense, net,
cost savings initiatives and lower MG&A expense, partially
offset by lower financial volumes, cost inflation related to
materials and manufacturing expenses and higher net interest
expense. Higher net interest expense was driven by an adjustment of
$45.8 million to increase our mandatorily redeemable NCI liability
to the final redemption value related to the CBPL buyout in the
third quarter of 2024.
- Underlying (Non-GAAP) income (loss) before income taxes:
Underlying income before income taxes improved 5.6% to $1,610.5
million in constant currency, primarily due to increased net
pricing, favorable sales mix, cost savings initiatives and lower
MG&A expense, partially offset by lower financial volumes and
cost inflation related to materials and manufacturing
expenses.
- Effective Tax Rate and Underlying Effective Tax
Rate
(Unaudited)
For the years ended
December 31, 2024
December 31, 2023
U.S. GAAP Effective Tax Rate
23.0%
23.6%
Underlying (Non-GAAP) Effective Tax
Rate(1)
22.5%
22.5%
(1) See Appendix for definitions and
reconciliations of non-GAAP financial measures.
Our U.S. GAAP effective tax rate
decreased when compared to the prior year in part due to the impact
of the $77.9 million gain recognized upon the consolidation of ZOA
in the fourth quarter of 2024, which is non-taxable. This decrease
was partially offset by (i) the $20.0 million increase in valuation
allowance that was recorded on deferred tax assets related to the
sale of certain U.S. craft businesses in the third quarter of 2024,
and (ii) the impact of the $45.8 million increase in the
mandatorily redeemable NCI liability of CBPL in the third quarter
of 2024, which is non-deductible for tax purposes. The effective
tax rate for the year ended December 31, 2024 was further decreased
by the recognition of additional net tax benefit items totaling
$12.8 million, as compared to the recognition of additional net tax
expense items totaling $10.0 million in the year ended December 31,
2023.
CASH FLOW AND LIQUIDITY HIGHLIGHTS
- U.S. GAAP cash from operations: Net cash provided by
operating activities was $1,910.3 million for the year ended
December 31, 2024, which decreased $168.7 million compared to the
prior year primarily due to the unfavorable timing of working
capital, partially offset by higher net income adjusted for
non-cash items. The unfavorable timing of working capital was
primarily driven by the timing of cash paid for our payables as
well as higher payments in the current year for 2023 annual
incentive compensation, partially offset by the timing of cash
receipts.
- Underlying free cash flow: cash generated of $1,240.6
million for the year ended December 31, 2024 which was a decrease
of $179.4 million from the prior year, primarily due to lower net
cash provided by operating activities.
- Debt: Total debt as of December 31, 2024 was $6,146.1
million and cash and cash equivalents totaled $969.3 million,
resulting in net debt of $5,176.8 million and a net debt to
underlying EBITDA ratio of 2.09x. As of December 31, 2023, our net
debt to underlying EBITDA ratio was 2.21x.
- Dividends: A cash dividend of $0.44 per share was
declared and paid to eligible shareholders of record on the
respective quarterly record dates throughout the year ended
December 31, 2024 for a total of $1.76 per share or a CAD
equivalent of CAD 2.39 per share.
- Share Repurchase Program: We paid $643.4 million and
$205.8 million, including brokerage commissions, for share
repurchases during the years ended December 31, 2024 and December
31, 2023, respectively.
2025 OUTLOOK
We expect to achieve the following targets for full year 2025.
However, the global macro environment is rapidly evolving,
resulting in uncertainty around the effects of geopolitical events
and global trade policy including the impacts on consumer trends.
As a result, our outlook does not reflect the impacts of these
activities or any imposition of import tariffs by the U.S. and
potential retaliatory actions by other countries.
- Net sales: low single-digit increase versus 2024 on a
constant currency basis.
- Underlying income (loss) before income taxes: mid
single-digit increase compared to 2024 on a constant currency
basis.
- Underlying earnings per share: high single-digit
increase compared to 2024.
- Capital Expenditures: $750 million incurred, plus or
minus 5%.
- Underlying free cash flow: $1.3 billion, plus or minus
10%.
- Underlying depreciation and amortization: $675 million,
plus or minus 5%.
- Consolidated net interest expense: $215 million, plus or
minus 5%.
- Underlying effective tax rate: in the range of 22% to
24% for 2025.
SUBSEQUENT EVENTS
Effective February 1, 2025, we obtained exclusive rights via a
license agreement to produce, market and sell Fever-Tree products
in the U.S. In connection with this agreement, we acquired the
shares of the Fever-Tree USA, Inc. entity, with the immaterial
acquisition to be accounted for as a business combination and
consideration to be allocated primarily to working capital
balances. Further, we made an investment of approximately $90
million in Fever-Tree Drinks Plc, a listed entity on the London
Stock Exchange (LSE:FEVR). The investment will be accounted for at
fair value under ASC 321. We expect to incur certain one-time
transition and integration fees related to the transactions over
the next several months. The amounts of such fees will be dependent
upon the progression of our integration plans.
On January 29, 2025, the Company paid $60.6 million to Stone
Brewing Company as final resolution of the Keystone litigation case
which had been fully accrued as of December 31, 2024.
On February 12, 2025, the Company's Board of Directors declared
a quarterly dividend of $0.47 per share, to be paid on March 14,
2025, to shareholders of Class A and Class B common stock of record
on February 27, 2025. Shareholders of exchangeable shares will
receive the CAD equivalent of dividends declared on Class A and
Class B common stock.
NOTES
Unless otherwise indicated in this release, all $ amounts are in
U.S. Dollars, and all comparative results are for the Company’s
fourth quarter or full year ended December 31, 2024, compared to
the fourth quarter or full year ended December 31, 2023. Some
numbers may not sum due to rounding.
2024 FOURTH QUARTER INVESTOR CONFERENCE CALL
Molson Coors Beverage Company will conduct an earnings
conference call with financial analysts and investors at 8:30 a.m.
Eastern Time today to discuss the Company’s 2024 fourth quarter
results. The live webcast will be accessible via our website,
ir.molsoncoors.com. An online replay of the webcast is expected to
be posted within two hours following the live webcast. The Company
will post this release and related financial statements on its
website today.
OVERVIEW OF MOLSON COORS BEVERAGE COMPANY
For more than two centuries, we have brewed beverages that unite
people to celebrate all life’s moments. From our core power brands
Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling
and Ožujsko to our above premium brands including Madrí
Excepcional, Staropramen, Blue Moon Belgian White and Leinenkugel’s
Summer Shandy, to our economy and value brands like Miller High
Life and Keystone Light, we produce many beloved and iconic beers.
While our Company's history is rooted in beer, we offer a modern
portfolio that expands beyond the beer aisle as well, including
flavored beverages like Vizzy Hard Seltzer, spirits like Five Trail
whiskey and non-alcoholic beverages. We also have partner brands,
such as Simply Spiked, ZOA Energy, among others, through license,
distribution, partnership and joint venture agreements. As a
business, our ambition is to be the first choice for our people,
our consumers and our customers, and our success depends on our
ability to make our products available to meet a wide range of
consumer segments and occasions.
To learn more about Molson Coors Beverage Company, visit
molsoncoors.com.
ABOUT MOLSON COORS CANADA INC.
Molson Coors Canada Inc. ("MCCI") is a subsidiary of Molson
Coors Beverage Company. MCCI Class A and Class B exchangeable
shares offer substantially the same economic and voting rights as
the respective classes of common shares of MCBC, as described in
MCBC’s annual proxy statement and Form 10-K filings with the U.S.
Securities and Exchange Commission. The trustee holder of the
special Class A voting stock and the special Class B voting stock
has the right to cast a number of votes equal to the number of then
outstanding Class A exchangeable shares and Class B exchangeable
shares, respectively.
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within
the meaning of the U.S. federal securities laws. Generally, the
words "expects," "intend," "goals," "plans," "believes,"
"continues," "may," "anticipate," "seek," "estimate," "outlook,"
"trends," "future benefits," "potential," "projects," "strategies,"
"implies," and variations of such words and similar expressions are
intended to identify forward-looking statements. Statements that
refer to projections of our future financial performance, our
anticipated growth and trends in our businesses, and other
characterizations of future events or circumstances are
forward-looking statements, and include, but are not limited to,
statements under the headings "CEO and CFO Perspectives" and "2025
Outlook," with respect to, among others, expectations of cost
inflation, limited consumer disposable income, consumer
preferences, overall volume and market share trends, our
competitive position, pricing trends, macroeconomic forces,
beverage industry trends, cost reduction strategies, execution of
our Acceleration Plan, shipment levels and profitability, the
sufficiency of capital resources, anticipated results, expectations
for funding future capital expenditures and operations, effective
tax rate, debt service capabilities, timing and amounts of debt and
leverage levels, Preserving the Planet and related initiatives and
expectations regarding future dividends and share repurchases. In
addition, statements that we make in this press release that are
not statements of historical fact may also be forward-looking
statements.
Although the Company believes that the assumptions upon which
its forward-looking statements are based are reasonable, it can
give no assurance that these assumptions will prove to be correct.
Important factors that could cause actual results to differ
materially from the Company’s historical experience, and present
projections and expectations are disclosed in the Company’s filings
with the Securities and Exchange Commission (“SEC”), including the
risks discussed in our filings with the SEC, including our most
recent Annual Report on Form 10-K and our Quarterly Reports on Form
10-Q. All forward-looking statements in this press release are
expressly qualified by such cautionary statements and by reference
to the underlying assumptions. You should not place undue reliance
on forward-looking statements, which speak only as of the date they
are made. We do not undertake to update forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
MARKET AND INDUSTRY DATA
The market and industry data used, if any, in this press release
are based on independent industry publications, customer specific
data, trade or business organizations, reports by market research
firms and other published statistical information from third
parties, including Circana (formerly Information Resources, Inc.)
for U.S. market data and Beer Canada for Canadian market data
(collectively, the “Third Party Information”), as well as
information based on management’s good faith estimates, which we
derive from our review of internal information and independent
sources. Such Third Party Information generally states that the
information contained therein or provided by such sources has been
obtained from sources believed to be reliable.
APPENDIX
STATEMENTS OF OPERATIONS - MOLSON COORS
BEVERAGE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of
Operations
(In millions, except per share data)
(Unaudited)
For the three months
ended
For the years ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Sales
$
3,243.6
$
3,333.1
$
13,734.3
$
13,884.6
Excise taxes
(508.0
)
(542.3
)
(2,107.3
)
(2,182.5
)
Net sales
2,735.6
2,790.8
11,627.0
11,702.1
Cost of goods sold
(1,698.1
)
(1,757.8
)
(7,093.6
)
(7,333.3
)
Gross profit
1,037.5
1,033.0
4,533.4
4,368.8
Marketing, general and administrative
expenses
(649.7
)
(683.2
)
(2,717.5
)
(2,779.9
)
Other operating income (expense), net
(6.0
)
(149.7
)
(65.4
)
(162.7
)
Equity income (loss)
6.3
(0.8
)
2.7
12.0
Operating income (loss)
388.1
199.3
1,753.2
1,438.2
Interest income (expense), net
(54.6
)
(46.1
)
(247.3
)
(208.6
)
Other pension and postretirement benefit
(cost), net
6.9
2.5
(5.0
)
10.2
Other non-operating income (expense),
net
5.9
9.8
2.1
12.7
Income (loss) before income taxes
346.3
165.5
1,503.0
1,252.5
Income tax benefit (expense)
(52.6
)
(60.0
)
(345.3
)
(296.1
)
Net income (loss)
293.7
105.5
1,157.7
956.4
Net (income) loss attributable to
noncontrolling interests
(5.9
)
(2.2
)
(35.3
)
(7.5
)
Net income (loss) attributable to MCBC
$
287.8
$
103.3
$
1,122.4
$
948.9
Basic net income (loss) attributable to
MCBC per share
$
1.40
$
0.48
$
5.38
$
4.39
Diluted net income (loss) attributable to
MCBC per share
$
1.39
$
0.48
$
5.35
$
4.37
Weighted average shares - basic
205.3
215.0
208.8
216.0
Weighted average shares - diluted
206.5
216.6
209.9
217.3
Dividends per share
$
0.44
$
0.41
$
1.76
$
1.64
BALANCE SHEETS - MOLSON COORS BEVERAGE
COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(In millions, except par value)
(Unaudited)
As of
December 31, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalents
$
969.3
$
868.9
Trade receivables, net
693.1
757.8
Other receivables, net
149.8
121.6
Inventories, net
727.8
802.3
Other current assets, net
308.4
297.9
Total current assets
2,848.4
2,848.5
Property, plant and equipment, net
4,460.4
4,444.5
Goodwill
5,582.3
5,325.3
Other intangibles, net
12,195.2
12,614.6
Other assets
978.0
1,142.2
Total assets
$
26,064.3
$
26,375.1
Liabilities and equity
Current liabilities
Accounts payable and other current
liabilities
$
3,013.0
$
3,180.8
Current portion of long-term debt and
short-term borrowings
32.2
911.8
Total current liabilities
3,045.2
4,092.6
Long-term debt
6,113.9
5,312.1
Pension and postretirement benefits
416.7
465.8
Deferred tax liabilities
2,733.4
2,697.2
Other liabilities
302.4
372.3
Total liabilities
12,611.6
12,940.0
Redeemable noncontrolling interest
168.5
27.9
Molson Coors Beverage Company
stockholders' equity
Capital stock
Preferred stock, $0.01 par value
(authorized: 25.0 shares; none issued)
—
—
Class A common stock, $0.01 par value
(authorized: 500.0 shares; issued: 2.6 shares and 2.6 shares,
respectively)
—
—
Class B common stock, $0.01 par value
(authorized: 500.0 shares; issued: 215.5 shares and 212.5 shares,
respectively)
2.1
2.1
Class A exchangeable shares, no par value
(issued: 2.7 shares and 2.7 shares, respectively)
100.8
100.8
Class B exchangeable shares, no par value
(issued: 7.2 shares and 9.4 shares, respectively)
271.1
352.3
Paid-in capital
7,223.6
7,108.4
Retained earnings
8,238.0
7,484.3
Accumulated other comprehensive income
(loss)
(1,362.4
)
(1,116.3
)
Class B common stock held in treasury at
cost (24.8 shares and 13.9 shares, respectively)
(1,380.8
)
(735.6
)
Total Molson Coors Beverage Company
stockholders' equity
13,092.4
13,196.0
Noncontrolling interests
191.8
211.2
Total equity
13,284.2
13,407.2
Total liabilities and equity
$
26,064.3
$
26,375.1
CASH FLOW STATEMENTS - MOLSON COORS
BEVERAGE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of
Cash Flows
(In millions) (Unaudited)
For the years ended
December 31, 2024
December 31, 2023
Cash flows from operating
activities
Net income (loss) including noncontrolling
interests
$
1,157.7
$
956.4
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities
Depreciation and amortization
759.4
682.8
Amortization of debt issuance costs and
discounts
5.3
5.7
Interest expense related to mandatorily
redeemable noncontrolling interest
46.5
—
Share-based compensation
43.1
44.9
(Gain) loss on sale or impairment of
property, plant, equipment and other assets, net
51.8
181.9
Unrealized (gain) loss on foreign currency
fluctuations and derivative instruments, net
(28.7
)
88.3
Equity (income) loss
(2.7
)
(12.0
)
Income tax (benefit) expense
345.3
296.1
Income tax (paid) received
(227.1
)
(244.8
)
Interest expense, excluding amortization
of debt issuance costs and discounts and mandatorily redeemable
noncontrolling interest
230.9
228.3
Interest paid
(216.0
)
(229.0
)
Other non-cash items, net
(77.1
)
—
Change in current assets and liabilities
(net of impact of business combinations) and other
(178.1
)
80.4
Net cash provided by (used in) operating
activities
1,910.3
2,079.0
Cash flows from investing
activities
Additions to property, plant and
equipment
(674.1
)
(671.5
)
Proceeds from sales of property, plant,
equipment and other assets
24.5
10.9
Acquisition of business, net of cash
acquired
(8.6
)
(63.7
)
Other
10.2
(117.4
)
Net cash provided by (used in) investing
activities
(648.0
)
(841.7
)
Cash flows from financing
activities
Dividends paid
(369.2
)
(354.7
)
Payments for purchases of treasury
stock
(643.4
)
(205.8
)
Payments on debt and borrowings
(883.8
)
(404.8
)
Proceeds on debt and borrowings
863.7
7.0
Other
(105.7
)
(23.1
)
Net cash provided by (used in) financing
activities
(1,138.4
)
(981.4
)
Effect of foreign exchange rate changes on
cash and cash equivalents
(23.5
)
13.0
Net increase (decrease) in cash and cash
equivalents
100.4
268.9
Balance at beginning of year
868.9
600.0
Balance at end of year
$
969.3
$
868.9
SUMMARIZED SEGMENT RESULTS (volume and
$ in millions) (Unaudited)
Americas
Q4 2024
Q4 2023
Reported % Change
FX Impact
Constant Currency %
Change
Full year 2024
Full year 2023
Reported % Change
FX Impact
Constant Currency %
Change
Net sales(1)
$
2,173.9
$
2,231.1
(2.6
)
$
(8.4
)
(2.2
)
$
9,240.2
$
9,425.2
(2.0
)
$
(21.9
)
(1.7
)
COGS(1)(2)
$
(1,317.5
)
$
(1,351.5
)
2.5
$
6.0
2.1
$
(5,561.8
)
$
(5,684.0
)
2.1
$
14.3
1.9
MG&A
$
(500.5
)
$
(528.2
)
5.2
$
3.4
4.6
$
(2,089.6
)
$
(2,186.3
)
4.4
$
6.5
4.1
Income (loss) before income taxes
$
361.8
$
362.5
(0.2
)
$
(3.1
)
0.7
$
1,523.3
$
1,566.7
(2.8
)
$
(7.0
)
(2.3
)
Underlying income (loss) before income
taxes(3)
$
362.0
$
363.0
(0.3
)
$
(2.7
)
0.5
$
1,590.3
$
1,578.6
0.7
$
(6.6
)
1.2
Financial volume(1)(4)
13.904
14.773
(5.9
)
58.905
62.491
(5.7
)
Brand volume
14.215
14.531
(2.2
)
58.143
59.917
(3.0
)
EMEA&APAC
Q4 2024
Q4 2023
Reported % Change
FX Impact
Constant Currency %
Change
Full year 2024
Full year 2023
Reported % Change
FX Impact
Constant Currency %
Change
Net sales(1)
$
568.7
$
566.6
0.4
$
5.2
(0.5
)
$
2,411.1
$
2,296.1
5.0
$
20.3
4.1
COGS(1)(2)
$
(393.5
)
(396.8
)
0.8
$
(3.7
)
1.8
$
(1,588.9
)
$
(1,575.0
)
(0.9
)
$
(14.1
)
—
MG&A
$
(149.2
)
(155.0
)
3.7
$
0.1
3.7
$
(627.9
)
$
(593.6
)
(5.8
)
$
(3.7
)
(5.2
)
Income (loss) before income taxes
$
23.5
$
(147.4
)
N/M
$
0.5
N/M
$
145.3
$
(41.1
)
N/M
$
(2.3
)
N/M
Underlying income (loss) before income
taxes(3)
$
24.2
$
15.3
58.2
$
0.5
54.9
$
185.9
$
126.8
46.6
$
(2.1
)
48.3
Financial volume(1)(4)
4.683
5.077
(7.8
)
20.722
21.286
(2.6
)
Brand volume
4.655
5.001
(6.9
)
20.673
20.940
(1.3
)
Unallocated & Eliminations
Q4 2024
Q4 2023
Reported % Change
FX Impact
Constant Currency %
Change
Full year 2024
Full year 2023
Reported % Change
FX Impact
Constant Currency %
Change
Net sales
$
(7.0
)
$
(6.9
)
(1.4
)
$
—
(1.4
)
$
(24.3
)
$
(19.2
)
(26.6
)
$
—
(26.6
)
COGS(2)
$
12.9
$
(9.5
)
N/M
$
—
N/M
$
57.1
$
(74.3
)
N/M
$
0.4
N/M
Income (loss) before income taxes
$
(39.0
)
$
(49.6
)
21.4
$
0.7
20.0
$
(165.6
)
$
(273.1
)
39.4
$
2.3
38.5
Underlying income (loss) before income
taxes(3)
$
(45.2
)
$
(32.5
)
(39.1
)
$
0.6
(40.9
)
$
(165.7
)
$
(174.2
)
4.9
$
1.9
3.8
Financial volume
(0.002
)
(0.001
)
N/M
(0.009
)
(0.005
)
N/M
Consolidated
Q4 2024
Q4 2023
Reported % Change
FX Impact
Constant Currency %
Change
Full year 2024
Full year 2023
Reported % Change
FX Impact
Constant Currency %
Change
Net sales
$
2,735.6
$
2,790.8
(2.0
)
$
(3.2
)
(1.9
)
$
11,627.0
$
11,702.1
(0.6
)
$
(1.6
)
(0.6
)
COGS
$
(1,698.1
)
$
(1,757.8
)
3.4
$
2.3
3.3
$
(7,093.6
)
$
(7,333.3
)
3.3
$
0.6
3.3
MG&A
$
(649.7
)
$
(683.2
)
4.9
$
3.5
4.4
$
(2,717.5
)
$
(2,779.9
)
2.2
$
2.8
2.1
Income (loss) before income taxes
$
346.3
$
165.5
109.2
$
(1.9
)
110.4
$
1,503.0
$
1,252.5
20.0
$
(7.0
)
20.6
Underlying income (loss) before income
taxes(3)
$
341.0
$
345.8
(1.4
)
$
(1.6
)
(0.9
)
$
1,610.5
$
1,531.2
5.2
$
(6.8
)
5.6
Financial volume(4)
18.585
19.849
(6.4
)
79.618
83.772
(5.0
)
Brand volume
18.870
19.532
(3.4
)
78.816
80.857
(2.5
)
N/M = Not meaningful
The reported percent change and the constant currency percent
change in the above table are presented as (unfavorable)
favorable.
(1)
Includes gross inter-segment
volumes, sales and purchases, which are eliminated in the
consolidated totals.
(2)
The unrealized changes in fair
value on our commodity swaps, which are economic hedges, are
recorded as cost of goods sold within Unallocated. As the exposure
we are managing is realized, we reclassify the gain or loss to the
segment in which the underlying exposure resides, allowing our
segments to realize the economic effects of the derivative without
the resulting unrealized mark-to-market volatility.
(3)
Represents income (loss) before
income taxes adjusted for non-GAAP items. See Appendix for
definitions and reconciliations of non-GAAP financial measures
including constant currency.
(4)
Financial volume in hectoliters
for the Americas and EMEA&APAC segments excludes royalty volume
of 0.755 million hectoliters and 0.286 million hectoliters for the
three months ended December 31, 2024, respectively, and excludes
royalty volume of 0.728 million hectoliters and 0.238 million
hectoliters for three months ended December 31, 2023, respectively.
Financial volume in hectoliters for the Americas and EMEA&APAC
excludes royalty volume of 2.550 million hectoliters and 1.185
million hectoliters for the year ended December 31, 2024,
respectively, and excludes royalty volume of 2.683 million
hectoliters and 0.935 million hectoliters for the year ended
December 31, 2023, respectively.
WORLDWIDE BRAND AND FINANCIAL
VOLUME
(In millions of hectoliters)
(Unaudited)
For the three months
ended
Americas
December 31, 2024
December 31, 2023
Change
Financial Volume
13.904
14.773
(5.9
)%
Contract brewing and wholesale/factored
volume
(0.589
)
(1.160
)
(49.2
)%
Royalty volume
0.755
0.728
3.7
%
Sales-To-Wholesaler to Sales-To-Retail
adjustment and other(1)
0.145
0.190
(23.7
)%
Total Worldwide Brand Volume
14.215
14.531
(2.2
)%
EMEA&APAC
December 31, 2024
December 31, 2023
Change
Financial Volume
4.683
5.077
(7.8
)%
Contract brewing and wholesale/factored
volume
(0.314
)
(0.314
)
—
%
Royalty volume
0.286
0.238
20.2
%
Total Worldwide Brand Volume
4.655
5.001
(6.9
)%
Consolidated
December 31, 2024
December 31, 2023
Change
Financial Volume
18.585
19.849
(6.4
)%
Contract brewing and wholesale/factored
volume
(0.903
)
(1.474
)
(38.7
)%
Royalty volume
1.041
0.966
7.8
%
Sales-To-Wholesaler to Sales-To-Retail
adjustment and other
0.147
0.191
(23.0
)%
Total Worldwide Brand Volume
18.870
19.532
(3.4
)%
(In millions of hectoliters)
(Unaudited)
For the years ended
Americas
December 31, 2024
December 31, 2023
Change
Financial Volume
58.905
62.491
(5.7
)%
Contract brewing and wholesale/factored
volume
(3.193
)
(5.476
)
(41.7
)%
Royalty volume
2.550
2.683
(5.0
)%
Sales-To-Wholesaler to Sales-To-Retail
adjustment and other(1)
(0.119
)
0.219
N/M
Total Worldwide Brand Volume
58.143
59.917
(3.0
)%
EMEA&APAC
December 31, 2024
December 31, 2023
Change
Financial Volume
20.722
21.286
(2.6
)%
Contract brewing and wholesale/factored
volume
(1.234
)
(1.280
)
(3.6
)%
Royalty volume
1.185
0.935
26.7
%
Sales-To-Wholesaler to Sales-To-Retail
adjustment and other (1)
—
(0.001
)
N/M
Total Worldwide Brand Volume
20.673
20.940
(1.3
)%
Consolidated
December 31, 2024
December 31, 2023
Change
Financial Volume
79.618
83.772
(5.0
)%
Contract brewing and wholesale/factored
volume
(4.427
)
(6.756
)
(34.5
)%
Royalty volume
3.735
3.618
3.2
%
Sales-To-Wholesaler to Sales-To-Retail
adjustment
(0.110
)
0.223
N/M
Total Worldwide Brand Volume
78.816
80.857
(2.5
)%
N/M = Not meaningful
(1)
Includes gross inter-segment volumes which
are eliminated in the consolidated totals.
Worldwide brand volume (or "brand volume" when discussed by
segment) reflects owned or actively managed brands sold to
unrelated external customers within our geographic markets (net of
returns and allowances), royalty volume and our proportionate share
of equity investment worldwide brand volume calculated consistently
with MCBC owned volume. Financial volume represents owned or
actively managed brands sold to unrelated external customers within
our geographical markets, net of returns and allowances as well as
contract brewing, wholesale non-owned brand volume and
company-owned distribution volume. Contract brewing and
wholesale/factored volume is included within financial volume, but
is removed from worldwide brand volume, as this is non-owned volume
for which we do not directly control performance. Factored volume
in our EMEA&APAC segment is the distribution of beer, wine,
spirits and other products owned and produced by other companies to
the on-premise channel, which is a common arrangement in the U.K.
Royalty volume consists of our brands produced and sold by third
parties under various license and contract brewing agreements and,
because this is owned volume, it is included in worldwide brand
volume. Our worldwide brand volume definition also includes an
adjustment from Sales-to-Wholesaler ("STW") volume to
Sales-to-Retailer ("STR") volume. We believe the brand volume
metric is important because, unlike financial volume and STWs, it
provides the closest indication of the performance of our brands in
relation to market and competitor sales trends.
We also utilize COGS per hectoliter, as well as the year over
year changes in this metric, as a key metric for analyzing our
results. This metric is calculated as COGS per our condensed
consolidated statements of operations divided by financial volume
for the respective period. We believe this metric is important and
useful for investors and management because it provides an
indication of the trends of sales mix and other cost impacts on our
COGS.
NON-GAAP MEASURES AND RECONCILIATIONS
Use of Non-GAAP Measures
In addition to financial measures presented on the basis of
accounting principles generally accepted in the U.S. (“U.S. GAAP”),
we also use non-GAAP financial measures, as listed and defined
below, for operational and financial decision making and to assess
Company and segment business performance. These non-GAAP measures
should be viewed as supplements to (not substitutes for) our
results of operations presented under U.S. GAAP. We have provided
reconciliations of all historical non-GAAP measures to their
nearest U.S. GAAP measure and have consistently applied the
adjustments within our reconciliations in arriving at each non-GAAP
measure.
Our management uses these metrics to assist in comparing
performance from period to period on a consistent basis; as a
measure for planning and forecasting overall expectations and for
evaluating actual results against such expectations; in
communications with the Board of Directors, stockholders, analysts
and investors concerning our financial performance; as useful
comparisons to the performance of our competitors; and as metrics
of certain management incentive compensation calculations. We
believe these measures are used by, and are useful to, investors
and other users of our financial statements in evaluating our
operating performance.
- Underlying Income (Loss) before Income Taxes (Closest GAAP
Metric: Income (Loss) Before Income Taxes) –Measure of the
Company’s or segment's income (loss) before income taxes excluding
the impact of certain non-GAAP adjustment items from our U.S. GAAP
financial statements. Non-GAAP adjustment items include goodwill
and other intangible and tangible asset impairments, restructuring
and integration related costs, unrealized mark-to-market gains and
losses, adjustments to the redemption value of mandatorily
redeemable noncontrolling interests, potential or incurred losses
related to certain litigation accruals and settlements, impacts of
settlement charges related to annuity purchases and gains and
losses on sales of non-operating assets, among other items included
in our U.S. GAAP results that warrant adjustment to arrive at
non-GAAP results. We consider these items to be necessary
adjustments for purposes of evaluating our ongoing business
performance and are often considered non-recurring. Such
adjustments are subjective, involve significant management judgment
and can vary substantially from company to company.
- Underlying COGS (Closest GAAP Metric: COGS) – Measure of
the Company’s COGS adjusted to exclude non-GAAP adjustment items
(as defined above). Non-GAAP adjustment items include, among other
items, unrealized mark-to-market gains and losses on our commodity
derivative instruments, which are economic hedges, and are recorded
through COGS within Unallocated. As the exposure we are managing is
realized, we reclassify the gain or loss to the segment in which
the underlying exposure resides, allowing our segments to realize
the economic effects of the derivatives without the resulting
unrealized mark-to-market volatility. We also use underlying COGS
per hectoliter, as well as the year over year change in such
metric, as a key metric for analyzing our results. This metric is
calculated as underlying COGS divided by financial volume for the
respective period.
- Underlying MG&A (Closest GAAP Metric:
MG&A) – Measure of the Company’s MG&A expense excluding
the impact of certain non-GAAP adjustment items (as defined
above).
- Underlying net interest income (expense), net (Closest GAAP
Metric: Interest income (expense), net) – Measure of the
Company's net interest expense adjusted to exclude adjustments to
the redemption value of mandatorily redeemable noncontrolling
interests.
- Underlying net income (loss) attributable to MCBC (Closest
GAAP Metric: Net income (loss) attributable to MCBC) – Measure
of net income (loss) attributable to MCBC excluding the impact of
income (loss) before income tax non-GAAP adjustment items (as
defined above), adjustments to the carrying value of redeemable
noncontrolling interests resulting from subsequent changes in the
redemption value of such interests, the related tax effects of
non-GAAP adjustment items and certain other discrete tax
items.
- Underlying net income (loss) attributable to MCBC per
diluted share (also referred to as Underlying Diluted Earnings per
Share) (Closest GAAP Metric: Net Income (loss) attributable to MCBC
per diluted share) – Measure of underlying net income (loss)
attributable to MCBC (as defined above) per diluted share. If
applicable, a reported net loss attributable to MCBC per diluted
share is calculated using the basic share count due to dilutive
shares being antidilutive. If underlying net income (loss)
attributable to MCBC becomes income excluding the impact of our
non-GAAP adjustment items, we include the incremental dilutive
shares, using the treasury stock method, into the dilutive shares
outstanding.
- Underlying effective tax rate (Closest GAAP Metric:
Effective Tax Rate) – Measure of the Company’s effective tax
rate excluding the related tax impact of pre-tax non-GAAP
adjustment items (as defined above) and certain other discrete tax
items. Discrete tax items include certain significant tax audit and
prior year reserve adjustments, impact of significant tax
legislation and tax rate changes and significant non-recurring and
period specific tax items.
- Underlying free cash flow (Closest GAAP Metric: Net Cash
Provided by (Used in) Operating Activities) – Measure of the
Company’s operating cash flow calculated as Net Cash Provided by
(Used In) Operating Activities less Additions to property, plant
and equipment, net and excluding the pre-tax cash flow impact of
certain non-GAAP adjustment items (as defined above). We consider
underlying free cash flow an important measure of our ability to
generate cash, grow our business and enhance shareholder value,
driven by core operations and after adjusting for non-GAAP
adjustment items, which can vary substantially from company to
company depending upon accounting methods, book value of assets and
capital structure.
- Underlying depreciation and amortization (Closest GAAP
Metric: Depreciation & Amortization) – Measure of the
Company’s depreciation and amortization excluding the impact of
non-GAAP adjustment items (as defined above). These adjustments
primarily consist of accelerated depreciation or amortization taken
related to the Company’s strategic exit or restructuring
activities.
- Net debt and net debt to underlying earnings before
interest, taxes, depreciation, and amortization ("underlying
EBITDA") (Closest GAAP Metrics: Cash, Debt, & Net Income
(Loss)) – Measure of the Company’s leverage calculated as net
debt (defined as current portion of long-term debt and short-term
borrowings plus long-term debt less cash and cash equivalents)
divided by the trailing twelve month underlying EBITDA. Underlying
EBITDA is calculated as Net income (loss) excluding Interest
expense (income), net, Income tax expense (benefit), depreciation
and amortization, and the impact of non-GAAP adjustment items (as
defined above). This measure is not the same as the Company’s
maximum leverage ratio as defined under its revolving credit
facility, which allows for other adjustments in the calculation of
net debt to EBITDA.
- Constant currency - Constant currency is a non-GAAP
measure utilized to measure performance, excluding the impact of
translational and certain transactional foreign currency movements,
and is intended to be indicative of results in local currency. As
we operate in various foreign countries where the local currency
may strengthen or weaken significantly versus the U.S. dollar or
other currencies used in operations, we utilize a constant currency
measure as an additional metric to evaluate the underlying
performance of each business without consideration of foreign
currency movements. We present all percentage changes for net
sales, underlying COGS, underlying MG&A and underlying income
(loss) before income taxes in constant currency and calculate the
impact of foreign exchange by translating our current period local
currency results (that also include the impact of the comparable
prior period currency hedging activities) at the average exchange
rates during the respective period throughout the year used to
translate the financial statements in the comparable prior year
period. The result is the current period results in U.S. dollars,
as if foreign exchange rates had not changed from the prior year
period. Additionally, we exclude any transactional foreign currency
impacts, reported within the other non-operating income (expense),
net line item, from our current period results.
Our guidance or long-term targets for any of the measures noted
above are also non-GAAP financial measures that exclude or
otherwise have been adjusted for non-GAAP adjustment items from our
U.S. GAAP financial statements. When we provide guidance for any of
the various non-GAAP metrics described above, we do not provide
reconciliations of the U.S. GAAP measures as we are unable to
predict with a reasonable degree of certainty the actual impact of
the non-GAAP adjustment items. By their very nature, non-GAAP
adjustment items are difficult to anticipate with precision because
they are generally associated with unexpected and unplanned events
that impact our Company and its financial results. Therefore, we
are unable to provide a reconciliation of these measures without
unreasonable efforts.
RECONCILIATION TO NEAREST U.S. GAAP
MEASURES
Reconciliation by Line Item
(In millions, except per share data)
(Unaudited)
For the three months ended
December 31, 2024
Cost of goods sold
Marketing, general and
administrative expenses
Income (loss) before income
taxes
Net income (loss) attributable
to MCBC
Diluted earnings per
share
Reported (U.S. GAAP)
$
(1,698.1
)
$
(649.7
)
$
346.3
$
287.8
$
1.39
Non-GAAP adjustments (pre-tax)
Restructuring(1)
—
—
83.8
83.8
0.41
(Gains) and losses on disposals
—
—
0.1
0.1
—
Unrealized mark-to-market (gains)
losses
(6.2
)
—
(6.2
)
(6.2
)
(0.03
)
Other items(2)
(6.3
)
0.5
(83.0
)
(83.0
)
(0.40
)
Tax effects of income before income tax
non-GAAP adjustments and discrete tax items
—
—
—
(13.9
)
(0.07
)
Underlying (Non-GAAP)
$
(1,710.6
)
$
(649.2
)
$
341.0
$
268.6
$
1.30
(In millions, except per share data)
(Unaudited)
For the three months ended
December 31, 2023
Cost of goods sold
Marketing, general and
administrative expenses
Income (loss) before income
taxes
Net income (loss) attributable
to MCBC
Diluted earnings per
share
Reported (U.S. GAAP)
$
(1,757.8
)
$
(683.2
)
$
165.5
$
103.3
$
0.48
Non-GAAP adjustments (pre-tax)
Restructuring
—
—
2.3
2.3
0.01
Intangible and tangible asset impairments,
excluding goodwill(3)
—
—
160.7
160.7
0.74
(Gains) and losses on disposals
—
—
(0.3
)
(0.3
)
—
Unrealized mark-to-market (gains)
losses
17.1
—
17.1
17.1
0.08
Other items
—
0.4
0.5
0.5
—
Tax effects of income before income tax
non-GAAP adjustments and discrete tax items
—
—
—
(26.2
)
(0.12
)
Underlying (Non-GAAP)
$
(1,740.7
)
$
(682.8
)
$
345.8
$
257.4
$
1.19
(In millions, except per share data)
(Unaudited)
For the year ended December
31, 2024
Cost of goods sold
Marketing, general and
administrative expenses
Income (loss) before income
taxes
Net income (loss) attributable
to MCBC
Net income (loss) attributable
to MCBC per diluted share
Reported (U.S. GAAP)
$
(7,093.6
)
$
(2,717.5
)
$
1,503.0
$
1,122.4
$
5.35
Non-GAAP adjustments (pre-tax)
Restructuring(1)
—
—
106.8
106.8
0.51
(Gains) and losses on disposals(4)
—
—
36.5
36.5
0.17
Unrealized mark-to-market (gains)
losses
(34.1
)
—
(34.1
)
(34.1
)
(0.16
)
Other items(2)
(6.3
)
2.2
(1.7
)
(1.7
)
(0.01
)
Tax effects of income before income tax
non-GAAP adjustments and discrete tax items
—
—
—
(16.4
)
(0.08
)
Adjustment for redeemable noncontrolling
interest recorded to the redemption value(5)
—
—
—
36.6
0.17
Underlying (Non-GAAP)
$
(7,134.0
)
$
(2,715.3
)
$
1,610.5
$
1,250.1
$
5.96
(In millions, except per share data)
(Unaudited)
For the year ended December
31, 2023
Cost of goods sold
Marketing, general and
administrative expenses
Income (loss) before income
taxes
Net income (loss) attributable
to MCBC
Net income (loss) attributable
to MCBC per diluted share
Reported (U.S. GAAP)
$
(7,333.3
)
$
(2,779.9
)
$
1,252.5
$
948.9
$
4.37
Non-GAAP adjustments (pre-tax)
Restructuring
—
—
4.1
4.1
0.02
Intangible and tangible asset impairments,
excluding goodwill(3)
—
—
160.8
160.8
0.74
(Gains) and losses on disposals(4)
—
—
10.8
10.8
0.05
Unrealized mark-to-market (gains)
losses
98.9
—
98.9
98.9
0.46
Other items
—
5.4
4.1
4.1
0.02
Tax effects of income before income tax
non-GAAP adjustments and discrete tax items
—
—
—
(48.2
)
(0.22
)
Underlying (Non-GAAP)
$
(7,234.4
)
$
(2,774.5
)
$
1,531.2
$
1,179.4
$
5.43
(1)
During the third quarter of 2024,
we made the decision to wind down or sell certain U.S. craft
businesses and related facilities within the Americas segment. As a
result, we recorded employee-related and asset abandonment charges,
including accelerated depreciation in excess of normal depreciation
of $83.7 million and $93.6 million for the three months ended and
year ended December 31, 2024, respectively
(2)
During the three months ended
December 31, 2024, we further increased our investment in ZOA
resulting in consolidation and recognized a gain of $77.9 million
in other operating (expense), net, within the Americas segment
representing the difference between the fair value and the carrying
value of our previously held equity interest on the acquisition
date.
During the third quarter of 2024,
we recorded a non-cash pension settlement loss of $34.0 million
within other pension and postretirement benefits (costs), net in
Unallocated as a result of annuity purchases for two of our
Canadian pension plans.
During the third quarter of 2024,
we increased our mandatorily redeemable NCI liability to the final
redemption value related to the buyout of the remaining ownership
interest in CBPL. As a result, we recorded an increase in interest
expense within our EMEA&APAC segment of $45.8 million.
(3)
During the fourth quarter of
2023, we recorded a $160.7 million partial impairment charge to our
indefinite-lived intangible asset related to the Staropramen family
of brands in our EMEA&APAC segment within other operating
income (expense), net in the consolidated statements of
operations.
(4)
We recognized a loss of $41.2
million on the disposal of certain U.S. craft businesses for the
year ended December 31, 2024.
During the third quarter of 2023,
we sold our controlling interest in the Truss joint venture within
our Americas segment and recognized a loss of $11.1 million.
(5)
During the third quarter of 2024,
we recorded a $36.6 million adjustment to net (income) loss
attributable to noncontrolling interests related to the change in
redemption value of CBPL. See the Consolidated Performance table
earlier in this document for further information on this
adjustment.
Reconciliation to Underlying Income
(Loss) Before Income Taxes by Segment
(In millions) (Unaudited)
For the three months ended
December 31, 2024
Americas
EMEA&APAC
Unallocated
Consolidated
U.S. GAAP Income (loss) before income
taxes
$
361.8
$
23.5
$
(39.0
)
$
346.3
Cost of goods sold(1)
(6.3
)
—
(6.2
)
(12.5
)
Marketing, general &
administrative
0.5
—
—
0.5
Other non-GAAP adjustment items(2)
6.0
0.7
—
6.7
Total non-GAAP adjustment items
$
0.2
$
0.7
$
(6.2
)
$
(5.3
)
Underlying income (loss) before income
taxes (Non-GAAP)
$
362.0
$
24.2
$
(45.2
)
$
341.0
(In millions) (Unaudited)
For the three months ended
December 31, 2023
Americas
EMEA&APAC
Unallocated
Consolidated
U.S. GAAP Income (loss) before income
taxes
$
362.5
$
(147.4
)
$
(49.6
)
$
165.5
Cost of goods sold(1)
—
—
17.1
17.1
Marketing, general &
administrative
0.4
—
—
0.4
Other non-GAAP adjustment items(2)
0.1
162.7
—
162.8
Total non-GAAP adjustment items
$
0.5
$
162.7
$
17.1
$
180.3
Underlying income (loss) before income
taxes (Non-GAAP)
$
363.0
$
15.3
$
(32.5
)
$
345.8
(In millions) (Unaudited)
For the year ended December
31, 2024
Americas
EMEA&APAC
Unallocated
Consolidated
U.S. GAAP Income (loss) before income
taxes
$
1,523.3
$
145.3
$
(165.6
)
$
1,503.0
Cost of goods sold(1)
(6.3
)
—
(34.1
)
(40.4
)
Marketing, general &
administrative
2.2
—
—
2.2
Other non-GAAP adjustment items(2)
71.1
40.6
34.0
145.7
Total non-GAAP adjustment items
$
67.0
$
40.6
$
(0.1
)
$
107.5
Underlying income (loss) before income
taxes (Non-GAAP)
$
1,590.3
$
185.9
$
(165.7
)
$
1,610.5
(In millions) (Unaudited)
For the year ended December
31, 2023
Americas
EMEA&APAC
Unallocated
Consolidated
U.S. GAAP Income (loss) before income
taxes
$
1,566.7
$
(41.1
)
$
(273.1
)
$
1,252.5
Cost of goods sold(1)
—
—
98.9
98.9
Marketing, general &
administrative
2.1
3.3
—
5.4
Other non-GAAP adjustment items(2)
9.8
164.6
—
174.4
Total non-GAAP adjustment items
$
11.9
$
167.9
$
98.9
$
278.7
Underlying income (loss) before income
taxes (Non-GAAP)
$
1,578.6
$
126.8
$
(174.2
)
$
1,531.2
(1)
Primarily reflects changes in our
mark-to-market positions on our commodity hedges recorded as cost
of goods sold within Unallocated. As the exposure we are managing
is realized, we reclassify the gain or loss to the segment in which
the underlying exposure resides, allowing our segments to realize
the economic effects of the derivative without the resulting
unrealized mark-to-market volatility.
(2)
See the Reconciliations by Line
Item table for further information on our non-GAAP adjustments.
Underlying Depreciation and
Amortization Reconciliation
(In millions) (Unaudited)
For the three months
ended
For the years ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
U.S. GAAP depreciation and
amortization
$
247.3
$
174.2
$
759.4
$
682.8
Accelerated depreciation(1)
(83.7
)
—
(93.6
)
—
Non-GAAP Underlying depreciation and
amortization
$
163.6
$
174.2
$
665.8
$
682.8
$
—
(1)
During the third quarter of 2024,
we made the decision to wind down or sell certain U.S. craft
businesses and related facilities within our Americas segment and
recorded accelerated depreciation in excess of normal depreciation
of $83.7 million and $93.6 million for the three months and year
ended December 31, 2024, respectively.
Underlying Net Interest Income
(Expense), net Reconciliation
(In millions) (Unaudited)
For the three months
ended
For the years ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
U.S. GAAP Interest income (expense),
net
$
(54.6
)
$
(46.1
)
$
(247.3
)
$
(208.6
)
Adjustment to the redemption value of
mandatorily redeemable noncontrolling interest(1)
0.7
—
46.5
—
Non-GAAP Underlying net interest income
(expense), net
$
(53.9
)
$
(46.1
)
$
(200.8
)
$
(208.6
)
(1)
During the three months and year
ended December 31, 2024 we recorded an increase in interest expense
driven by an adjustment to increase our mandatorily redeemable NCI
liability related to CBPL to its final redemption value. See the
Consolidated Performance table earlier in this document for further
information on this adjustment.
Effective Tax Rate
Reconciliation
(Unaudited)
For the years ended
December 31, 2024
December 31, 2023
U.S. GAAP Effective Tax Rate
23.0
%
23.6
%
Tax effect of non-GAAP adjustment
items(1)
(0.5
%)
(1.1
%)
Underlying (Non-GAAP) Effective Tax
Rate
22.5
%
22.5
%
(1)
Adjustments related to the tax
effect of non-GAAP adjustment items, as well as certain discrete
tax items excluded from our underlying effective tax rate. Discrete
tax items include significant tax audit and prior year reserve
adjustments, impact of significant tax legislation and tax rate
changes and significant non-recurring and period specific tax
items.
The change in tax effect of
non-GAAP adjustment items for the year ended December 31, 2024
included the impacts from (i) the $45.8 million adjustment recorded
to interest expense to increase the mandatorily redeemable NCI
liability related to CBPL recorded in the third quarter of 2024,
which is non-deductible for tax purposes, and (ii) the valuation
allowance on deferred tax assets resulting from the sale of certain
U.S. craft businesses recorded in the third quarter of 2024. The
tax effect of those adjustments was partially offset by the
non-taxable gain of $77.9 million recognized upon the consolidation
of ZOA in the fourth quarter of 2024. The change in tax effect of
non-GAAP adjustment items for the year ended December 31, 2023,
included the impacts from recognition of approximately $9.0 million
of discrete tax expense recorded in U.S. GAAP in the fourth
quarter.
Underlying Free Cash Flow
(In millions) (Unaudited)
For the years ended
December 31, 2024
December 31, 2023
U.S. GAAP Net Cash Provided by (Used
In) Operating Activities
$
1,910.3
$
2,079.0
Additions to property, plant and
equipment, net(1)
(674.1
)
(671.5
)
Cash impact of non-GAAP adjustment
items(2)
4.4
12.5
Non-GAAP Underlying Free Cash
Flow
$
1,240.6
$
1,420.0
(1)
Included in net cash provided by
(used in) investing activities.
(2)
Included in net cash provided by
(used in) operating activities and primarily reflects costs paid
for restructuring activities for the years ended December 31, 2024
and December 31, 2023.
Net Debt and Net Debt to Underlying
EBITDA Ratio
(In millions except net debt to underlying
EBITDA ratio) (Unaudited)
As of
December 31, 2024
December 31, 2023
U.S. GAAP Current portion of long-term
debt and short-term borrowings
$
32.2
$
911.8
Add/Less:
Long-term debt
6,113.9
5,312.1
Cash and cash equivalents
969.3
868.9
Net debt
5,176.8
5,355.0
Q4 Underlying EBITDA
558.5
566.1
Q3 Underlying EBITDA
692.3
742.9
Q2 Underlying EBITDA
750.1
725.2
Q1 Underlying EBITDA
476.2
388.4
Non-GAAP Underlying EBITDA(1)
$
2,477.1
$
2,422.6
Net debt to underlying EBITDA
ratio
2.09
2.21
(1)
Represents underlying EBITDA on a trailing twelve month
basis.
Underlying EBITDA
Reconciliation
($ in millions) (Unaudited)
For the three months
ended
December 31, 2024
December 31, 2023
U.S. GAAP Net income (loss)
$
293.7
$
105.5
Add/Less:
Interest expense (income), net
54.6
46.1
Income tax expense (benefit)
52.6
60.0
Depreciation and amortization
247.3
174.2
Non-GAAP adjustments to arrive at
underlying EBITDA(1)
(89.7
)
180.3
Non-GAAP Underlying EBITDA
$
558.5
$
566.1
(1)
Includes pre-tax adjustments to
Net income (loss) related to non-GAAP adjustment items as described
in other non-GAAP reconciliation tables above excluding non-GAAP
adjustments to interest expense (income), net, and depreciation and
amortization. See the above tables (i) Reconciliations to Nearest
U.S. GAAP Measures by Line Item, (ii) Underlying Depreciation and
Amortization Reconciliation and (iii) Underlying Net Interest
Income (Expense), net Reconciliation tables for further information
on our non-GAAP adjustments.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250213598142/en/
Investor Relations Traci Mangini, (415) 308-0151
News Media Rachel Gellman Johnson, (314) 452-9673
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