Molson Coors Beverage Company Reports 2023 Fourth Quarter and Full Year Results
- Strong fourth-quarter and full-year financial performance with net sales growth of 9.4% reported and 9.3% in constant currency.
- Underlying income before income taxes increased by 36.9% in constant currency, exceeding guidance.
- Molson Coors experienced growth in the U.S. premium segment, with annual U.S. brand volumes for Coors Light and Miller Lite showing significant growth.
- The company achieved volume, share, and net sales growth in its three largest global markets in 2023.
- Molson Coors' successes over the past years have set a foundation for future growth, supported by investments in breweries, commercial capabilities, and global workforce.
- CEO and CFO express confidence in the company's ability to continue growing and building on the momentum of 2023.
- Reduction in net debt, strong cash flow, and investments in business expansion highlight the company's financial stability and growth potential.
- The company's strategic investments in its brands and commercial efforts have supported its continued momentum and market presence.
- None.
Insights
The reported financial results for Molson Coors Beverage Company demonstrate a robust performance, with a 9.4% increase in net sales and a $1.3 billion improvement in income before income taxes. This growth is particularly notable as it exceeds the company's own guidance and indicates a strong command over cost management and pricing strategies. The reduction in net debt and the increase in share repurchases reflect a confident capital allocation strategy that may appeal to investors seeking companies with a strong balance sheet and a shareholder-friendly approach.
From a financial perspective, the significant decrease in non-cash impairment charges suggests that previous write-downs of the company's assets may have been overly conservative or that there has been a recovery in the value of those assets. The underlying income increase of 36.9% on a constant currency basis further underscores operational efficiency and the company's ability to navigate inflationary pressures and currency fluctuations.
Looking ahead, the fiscal 2024 guidance projecting continued growth aligns with the company's long-term strategy. However, investors will need to monitor how the company manages potential headwinds such as commodity price volatility and changes in consumer spending patterns, especially given the current macroeconomic environment.
The positive performance in Molson Coors' core brands, particularly in the U.S. premium segment, reflects successful adaptation to shifting consumer preferences. The double-digit growth of Coors Light, Miller Lite and Coors Banquet indicates strong brand equity and effective marketing strategies. Additionally, the company's innovation with above premium products like Simply Spiked and Madri aligns with the trend of consumers trading up to more premium offerings.
The company's ability to achieve volume, share and net sales growth across its three largest global markets is a testament to its robust distribution network and commercial capabilities. However, it is crucial to note the challenges in EMEA&APAC, where economic pressures have led to decreased consumption. The partial impairment charge related to the Staropramen family of brands suggests that there may be obstacles to growth in certain international markets.
The emphasis on increased marketing investment and the mention of higher incentive compensation expense reflect a strategic focus on brand promotion and employee performance. These investments are likely to support long-term brand strength but may impact short-term margins.
The reported financials of Molson Coors provide insight into broader economic trends. The company's performance, particularly the ability to pass on increased costs to consumers through pricing strategies, may indicate a degree of pricing power in the market, which is often a sign of a strong competitive position. However, this ability also reflects the current inflationary environment where businesses face increased costs for materials and manufacturing.
The impact of foreign exchange on the company's financials is also noteworthy, as it highlights the importance of currency risk management in multinational operations. The constant currency basis adjustments made in the report help isolate operational performance from currency volatility, offering a clearer view of the company's true economic health.
The mention of macroeconomic factors, such as increased optionality for consumers and reduced demand in Central and Eastern Europe, points to potential vulnerabilities. These factors, combined with the rising interest rate environment, may pose challenges to the company's growth trajectory, especially in international markets.
Continued Fourth Quarter Top-Line Strength Delivers
Full Year Income before Income Taxes Improves
Fiscal 2024 Guidance Indicating Continued Net Sales and Underlying Income before Income Taxes Growth in Line with Long-Term Growth Algorithm
2023 FOURTH QUARTER FINANCIAL HIGHLIGHTS1
-
Net sales increased
6.1% reported and5.0% in constant currency. -
U.S. GAAP income before income taxes of$165.5 million $729.6 million $692.0 million -
Underlying (Non-GAAP) income before income taxes of
$345.8 million 2.1% in constant currency.
2023 FULL YEAR FINANCIAL HIGHLIGHTS1
-
Net sales increased
9.4% reported and9.3% in constant currency. -
U.S. GAAP income before income taxes of$1,252.5 million $1,315.0 million $720.5 million $126.9 million -
Underlying (Non-GAAP) income before income taxes of
$1,531.2 million 36.9% in constant currency. -
U.S. GAAP net income attributable to MCBC of$948.9 million $4.37 $5.43 32.4% . -
Net cash provided by operating activities of
$2,079.0 million $1,420.0 million -
Reduction in net debt of
$607.3 million -
Cash paid for share repurchases of
$205.8 million $51.5 million
_____________________
1 See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency.
CEO AND CFO PERSPECTIVES
The fourth quarter of 2023 was a strong finish to an incredible year for Molson Coors. Full year net sales grew
This is the Company's second consecutive year of delivering both top and bottom-line growth. Molson Coors was well positioned to benefit from the significant shifts in consumer purchasing habits, largely in the
Expanding on this success, Molson Coors achieved volume, share and net sales growth in each of the Company's three largest global markets in 2023. While its core brands were a strong driver, Molson Coors' above premium innovations like Simply Spiked and Madri also contributed to these results.
Molson Coors' successes over the last several years have established a new foundation from which to grow. Supported by its investments in its breweries, its commercial capabilities and its people worldwide, Molson Coors is confident in its ability to achieve its long-term growth algorithm in the future.
Gavin Hattersley, President and Chief Executive Officer Statement:
“2023 marked the second straight year in which Molson Coors did exactly what we set out to do - grow our business. But more than that, last year we achieved the highest reported top and bottom-line figures in the history of our Company. We plan to build on this momentum in 2024, with strong commercial plans, a powerful and supportive distributor network and the financial flexibility to reinvest in our business."
Tracey Joubert, Chief Financial Officer Statement:
“We are incredibly proud of our accomplishments in 2023. We achieved strong top and bottom-line growth driven in both our business units while we continued to strategically invest in our business, further strengthen our balance sheet and return cash to shareholders through a higher dividend and a larger new share repurchase program. We enter 2024 in a position of strength and are confident in our ability to continue to grow our business."
CONSOLIDATED PERFORMANCE - FOURTH QUARTER AND FULL YEAR 2023 |
||||||||||||||||
|
For the three months ended |
|||||||||||||||
($ in millions, except per share data) (Unaudited) |
December 31,
|
|
December 31,
|
|
Reported
|
|
Foreign
|
|
Constant
|
|||||||
Net sales |
$ |
2,790.8 |
|
$ |
2,629.5 |
|
|
6.1 |
% |
|
$ |
29.4 |
|
|
5.0 |
% |
|
$ |
165.5 |
|
$ |
(564.1 |
) |
|
N/M |
|
|
$ |
(2.8 |
) |
|
N/M |
|
Underlying income (loss) before income taxes(1) |
$ |
345.8 |
|
$ |
328.6 |
|
|
5.2 |
% |
|
$ |
10.2 |
|
|
2.1 |
% |
|
$ |
103.3 |
|
$ |
(590.5 |
) |
|
N/M |
|
|
|
|
|
|||
Per diluted share |
$ |
0.48 |
|
$ |
(2.73 |
) |
|
N/M |
|
|
|
|
|
|||
Underlying net income (loss)(1) |
$ |
257.4 |
|
$ |
281.9 |
|
|
(8.7 |
)% |
|
|
|
|
|||
Per diluted share(3) |
$ |
1.19 |
|
$ |
1.30 |
|
|
(8.5 |
)% |
|
|
|
|
|||
N/M = Not meaningful |
||||||||||||||||
|
For the years ended |
|||||||||||||||
($ in millions, except per share data) (Unaudited) |
December 31,
|
|
December 31,
|
|
Reported
|
|
Foreign
|
|
|
Constant
|
||||||
Net sales |
$ |
11,702.1 |
|
$ |
10,701.0 |
|
|
9.4 |
% |
|
$ |
9.5 |
|
9.3 |
% |
|
|
$ |
1,252.5 |
|
$ |
(62.5 |
) |
|
N/M |
|
|
$ |
9.1 |
|
N/M |
|
|
Underlying income (loss) before income taxes(1) |
$ |
1,531.2 |
|
$ |
1,104.8 |
|
|
38.6 |
% |
|
$ |
19.1 |
|
36.9 |
% |
|
|
$ |
948.9 |
|
$ |
(175.3 |
) |
|
N/M |
|
|
|
|
|
|||
Per diluted share |
$ |
4.37 |
|
$ |
(0.81 |
) |
|
N/M |
|
|
|
|
|
|||
Underlying net income (loss)(1) |
$ |
1,179.4 |
|
$ |
892.6 |
|
|
32.1 |
% |
|
|
|
|
|||
Per diluted share(3) |
$ |
5.43 |
|
$ |
4.10 |
|
|
32.4 |
% |
|
|
|
|
|||
N/M = Not meaningful |
||||||||||||||||
(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) |
Underlying net income (loss) attributable to MCBC per diluted share for the three months and year ended December 31, 2022 were based on diluted shares of 217.4 million and 217.7 million, respectively. The underlying diluted share count includes incremental dilutive shares, using the treasury stock method, which are added to average shares outstanding. |
QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS FOURTH QUARTER 2022 RESULTS)
- Net sales: The following table highlights the drivers of the change in net sales and net sales per hectoliter for the three months ended December 31, 2023 compared to December 31, 2022 (in percentages):
(unaudited) |
For the three months ended December 31, 2023 |
||||||
|
Financial
|
|
Price and
|
|
Currency |
|
Net Sales |
Consolidated - Net sales |
|
|
|
|
|
|
|
Consolidated - Net sales per hectoliter |
N/A |
|
|
|
|
|
|
Net sales increased
Financial volumes increased
Price and sales mix favorably impacted net sales and net sales per hectoliter by
-
Cost of goods sold (COGS): increased
3.0% on a reported basis, primarily due to unfavorable foreign currency impacts, higher cost of goods sold per hectoliter and higher financial volumes. Cost of goods sold per hectoliter: increased2.2% on a reported basis, including the unfavorable currency impact of1.2% , primarily due to cost inflation related to materials and manufacturing expenses, and unfavorable mix driven by lower contract volumes in theAmericas segment as well as higher factored volumes in the EMEA&APAC segment, partially offset by cost savings. Underlying COGS per hectoliter: increased1.4% in constant currency primarily due to cost inflation related to materials and manufacturing expenses and unfavorable mix driven by lower contract volumes in theAmericas segment as well as higher factored volumes in the EMEA&APAC segment, partially offset by cost savings.
-
Marketing, general & administrative (MG&A): increased
18.7% on a reported basis due to increased marketing investment, higher incentive compensation expense and the unfavorable impact of foreign currency movements. Underlying MG&A: increased17.4% in constant currency.
-
U.S. GAAP income (loss) before income taxes:U.S. GAAP income before income taxes of$165.5 million $729.6 million $692 million
We recorded a non-cash$845 million Americas segment in the fourth quarter of 2022. In the fourth quarter of 2023, we recorded a non-cash$160.7 million Eastern Europe due to cost inflation pressures on consumers as well as macroeconomic factors including an increase in the discount rate as a result of the recent rising interest rate environment.
-
Underlying income (loss) before income taxes: Underlying income before income taxes of
$345.8 million 2.1% in constant currency primarily due to increased net pricing to customers, favorable sales mix, cost savings and higher financial volumes, partially offset by higher MG&A and cost inflation related to materials and manufacturing expenses.
QUARTERLY SEGMENT HIGHLIGHTS (VERSUS FOURTH QUARTER 2022 RESULTS)
Americas Segment
- Net sales: The following table highlights the drivers of the change in net sales and net sales per hectoliter for the three months ended December 31, 2023 compared to December 31, 2022 (in percentages):
(unaudited) |
For the three months ended December 31, 2023 |
||||||
|
Financial
|
|
Price and
|
|
Currency |
|
Net Sales |
|
|
|
|
|
|
|
|
|
N/A |
|
|
|
(0.1)% |
|
|
Net sales increased
Financial volumes increased
Price and sales mix favorably impacted net sales and net sales per hectoliter by
-
U.S. GAAP income (loss) before income taxes:U.S. GAAP income before income taxes of$362.5 million $861.7 million $845 million
-
Underlying income (loss) before income taxes: Underlying income before income taxes of
$363.0 million 5.0% in constant currency primarily due to higher financial volumes, increased net pricing, lower logistics expenses and cost savings, partially offset by higher MG&A expense and cost inflation related to materials and manufacturing expenses.
EMEA&APAC Segment
- Net sales: The following table highlights the drivers of the change in net sales and net sales per hectoliter for the three months ended December 31, 2023 compared to December 31, 2022 (in percentages):
(unaudited) |
For the three months ended December 31, 2023 |
||||||
|
Financial
|
|
Price and
|
|
Currency |
|
Net Sales |
EMEA&APAC - Net sales |
(3.0)% |
|
|
|
|
|
|
EMEA&APAC - Net sales per hectoliter |
N/A |
|
|
|
|
|
|
Net sales increased
Financial volumes decreased
Price and sales mix favorably impacted net sales and net sales per hectoliter by
-
U.S. GAAP income (loss) before income taxes:U.S. GAAP loss before income taxes of$147.4 million $159.8 million $160.7 million
-
Underlying income (loss) before income taxes: Underlying income before income taxes of
$15.3 million 52.7% in constant currency primarily due to cost inflation on materials and logistics expenses, higher MG&A, as well as lower financial volumes, partially offset by increased net pricing to customers and favorable sales mix.
FULL YEAR CONSOLIDATED HIGHLIGHTS (VERSUS 2022 RESULTS)
- Net sales: The following table highlights the drivers of the change in net sales and net sales per hectoliter for the year ended December 31, 2023 compared to December 31, 2022 (in percentages):
(unaudited) |
For the year ended December 31, 2023 |
||||||
|
Financial
|
|
Price and
|
|
Currency |
|
Net Sales |
Consolidated - Net sales |
|
|
|
|
|
|
|
Consolidated - Net sales per hectoliter |
N/A |
|
|
|
|
|
|
Net sales increased
Financial volumes increased
Price and sales mix favorably impacted net sales and net sales per hectoliter by
-
Cost of goods sold (COGS): increased
4.1% on a reported basis, primarily due to higher cost of goods sold per hectoliter and higher financial volumes. Cost of goods sold per hectoliter: increased2.2% , primarily due to cost inflation related to materials and manufacturing expenses and unfavorable mix, partially offset by changes in our unrealized mark-to-market commodity derivative positions of$126.9 million 4.2% in constant currency primarily due to cost inflation related to materials and manufacturing expenses and unfavorable mix, partially offset by cost savings and volume leverage.
-
Marketing, general & administrative (MG&A): increased
6.2% on a reported basis primarily due to higher incentive compensation expense and increased marketing investment on core and innovation brands, partially offset by cycling the recording of a$56.0 million 8.3% in constant currency.
-
U.S. GAAP income (loss) before income taxes:U.S. GAAP income before income taxes of$1,252.5 million $1,315.0 million $720.5 million $126.9 million
-
Underlying income (loss) before income taxes: Underlying income before income taxes of
$1,531.2 million 36.9% in constant currency primarily due to increased net pricing to customers, higher financial volumes, favorable sales mix, cost savings and lower net interest expense, partially offset by cost inflation related to materials and manufacturing expenses and higher MG&A spend.
CASH FLOW AND LIQUIDITY HIGHLIGHTS
-
U.S. GAAP cash from operations: net cash provided by operating activities was$2,079.0 million $577.0 million Americas across all categories, partially offset by higher income taxes paid.
-
Underlying free cash flow: cash generated of
$1,420.0 million $567.1 million
-
Debt: Total debt as of December 31, 2023 was
$6,223.9 million $868.9 million $5,355.0 million
-
Dividends: A cash dividend of
$0.41 $1.64 CAD 2.19 per share.
-
Share Repurchase Program: On September 29, 2023 our Company's Board of Directors approved a new share repurchase program authorizing the repurchase of up to an aggregate of
$2.0 billion $61.06 $211.0 million
OTHER RESULTS |
|||||
Tax Rates Table |
|||||
(Unaudited) |
For the year ended |
||||
|
December 31, 2023 |
|
December 31, 2022 |
||
|
23.6 |
% |
|
(198.4 |
%) |
Underlying effective tax rate(1) |
22.5 |
% |
|
19.1 |
% |
| (1) | See Appendix for definitions and reconciliations of non-GAAP financial measures. |
-
The increase in our full year
U.S. GAAP effective tax rate was primarily due to the impact of a non-cash$845 million Americas segment in the fourth quarter of 2022, which related to goodwill not deductible for tax purposes.
- The increase in our full year Underlying effective tax rate was primarily due to the impact of geographic mix with higher income before income taxes in higher tax rate jurisdictions.
2024 OUTLOOK
Building off of the growth we achieved in 2023, we expect to achieve the following targets for full year 2024:
- Net sales: low single-digit increase versus 2023 on a constant currency basis.
- Underlying income (loss) before income taxes: mid single-digit increase compared to 2023 on a constant currency basis.
- Underlying earnings per share: mid single-digit increase compared to 2023.
-
Capital Expenditures:
$750 million 5% .
-
Underlying free cash flow:
$1.2 billion 10% .
-
Underlying depreciation and amortization:
$700 million 5% .
-
Consolidated net interest expense:
$210 million 5% .
-
Underlying effective tax rate: in the range of
23% to25% for 2024.
On February 13, 2024, the Company's Board of Directors declared a quarterly dividend of
NOTES
Unless otherwise indicated in this release, all $ amounts are in
2023 FOURTH QUARTER INVESTOR CONFERENCE CALL
Molson Coors Beverage Company will conduct an earnings conference call with financial analysts and investors at 11:00 a.m. Eastern Time today to discuss the Company’s 2023 fourth quarter and full year results. The live webcast will be accessible via our website, ir.molsoncoors.com. An online replay of the webcast will be available until 11:59 p.m. Eastern Time on April 29, 2024. The Company will post this release on its website today.
OVERVIEW OF MOLSON COORS BEVERAGE COMPANY
For more than two centuries, Molson Coors Beverage Company has been brewing beverages that unite people to celebrate all life’s moments. From our core power brands Coors Light, Miller Lite, Coors Banquet, Molson Canadian,
Our reporting segments include:
Our Environmental, Social and Governance ("ESG") strategy is focused on People and Planet with a strong commitment to raising industry standards and leaving a positive imprint on our employees, consumers, communities, and the environment. To learn more about Molson Coors Beverage Company, visit molsoncoors.com, MolsonCoorsOurImprint.com or on X (formerly Twitter) through @MolsonCoors.
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
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the
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”). These factors include, among other things, the deterioration of general economic, political, credit and/or capital market conditions, including those caused by the ongoing conflict between
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,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
||||||||
Sales |
$ |
3,333.1 |
|
|
$ |
3,145.4 |
|
|
$ |
13,884.6 |
|
|
$ |
12,807.5 |
|
Excise taxes |
|
(542.3 |
) |
|
|
(515.9 |
) |
|
|
(2,182.5 |
) |
|
|
(2,106.5 |
) |
Net sales |
|
2,790.8 |
|
|
|
2,629.5 |
|
|
|
11,702.1 |
|
|
|
10,701.0 |
|
Cost of goods sold |
|
(1,757.8 |
) |
|
|
(1,705.8 |
) |
|
|
(7,333.3 |
) |
|
|
(7,045.8 |
) |
Gross profit |
|
1,033.0 |
|
|
|
923.7 |
|
|
|
4,368.8 |
|
|
|
3,655.2 |
|
Marketing, general and administrative expenses |
|
(683.2 |
) |
|
|
(575.5 |
) |
|
|
(2,779.9 |
) |
|
|
(2,618.8 |
) |
Goodwill impairment |
|
— |
|
|
|
(845.0 |
) |
|
|
— |
|
|
|
(845.0 |
) |
Other operating income (expense), net |
|
(149.7 |
) |
|
|
(15.7 |
) |
|
|
(162.7 |
) |
|
|
(38.6 |
) |
Equity income (loss) |
|
(0.8 |
) |
|
|
1.0 |
|
|
|
12.0 |
|
|
|
4.7 |
|
Operating income (loss) |
|
199.3 |
|
|
|
(511.5 |
) |
|
|
1,438.2 |
|
|
|
157.5 |
|
Interest income (expense), net |
|
(46.1 |
) |
|
|
(57.7 |
) |
|
|
(208.6 |
) |
|
|
(246.3 |
) |
Other pension and postretirement benefits (costs), net |
|
2.5 |
|
|
|
0.9 |
|
|
|
10.2 |
|
|
|
36.6 |
|
Other non-operating income (expense), net |
|
9.8 |
|
|
|
4.2 |
|
|
|
12.7 |
|
|
|
(10.3 |
) |
Income (loss) before income taxes |
|
165.5 |
|
|
|
(564.1 |
) |
|
|
1,252.5 |
|
|
|
(62.5 |
) |
Income tax benefit (expense) |
|
(60.0 |
) |
|
|
(25.7 |
) |
|
|
(296.1 |
) |
|
|
(124.0 |
) |
Net income (loss) |
|
105.5 |
|
|
|
(589.8 |
) |
|
|
956.4 |
|
|
|
(186.5 |
) |
Net (income) loss attributable to noncontrolling interests |
|
(2.2 |
) |
|
|
(0.7 |
) |
|
|
(7.5 |
) |
|
|
11.2 |
|
Net income (loss) attributable to MCBC |
$ |
103.3 |
|
|
$ |
(590.5 |
) |
|
$ |
948.9 |
|
|
$ |
(175.3 |
) |
|
|
|
|
|
|
|
|
||||||||
Basic net income (loss) attributable to MCBC per share |
$ |
0.48 |
|
|
$ |
(2.73 |
) |
|
$ |
4.39 |
|
|
$ |
(0.81 |
) |
Diluted net income (loss) attributable to MCBC per share |
$ |
0.48 |
|
|
$ |
(2.73 |
) |
|
$ |
4.37 |
|
|
$ |
(0.81 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares - basic |
|
215.0 |
|
|
|
216.6 |
|
|
|
216.0 |
|
|
|
216.9 |
|
Weighted average shares - diluted |
|
216.6 |
|
|
|
216.6 |
|
|
|
217.3 |
|
|
|
216.9 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends per share |
$ |
0.41 |
|
|
$ |
0.38 |
|
|
$ |
1.64 |
|
|
$ |
1.52 |
|
|
|
|
|
|
|
|
|
||||||||
| BALANCE SHEETS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Balance Sheets |
|||||||
(In millions, except par value) (Unaudited) |
As of |
||||||
|
December 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
868.9 |
|
|
$ |
600.0 |
|
Trade receivables, net |
|
757.8 |
|
|
|
739.8 |
|
Other receivables, net |
|
121.6 |
|
|
|
126.4 |
|
Inventories, net |
|
802.3 |
|
|
|
792.9 |
|
Other current assets, net |
|
297.9 |
|
|
|
378.9 |
|
Total current assets |
|
2,848.5 |
|
|
|
2,638.0 |
|
Property, plant and equipment, net |
|
4,444.5 |
|
|
|
4,222.8 |
|
Goodwill |
|
5,325.3 |
|
|
|
5,291.9 |
|
Other intangibles, net |
|
12,614.6 |
|
|
|
12,800.1 |
|
Other assets |
|
1,142.2 |
|
|
|
915.5 |
|
Total assets |
$ |
26,375.1 |
|
|
$ |
25,868.3 |
|
Liabilities and equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and other current liabilities |
$ |
3,180.8 |
|
|
$ |
2,978.3 |
|
Current portion of long-term debt and short-term borrowings |
|
911.8 |
|
|
|
397.1 |
|
Total current liabilities |
|
4,092.6 |
|
|
|
3,375.4 |
|
Long-term debt |
|
5,312.1 |
|
|
|
6,165.2 |
|
Pension and postretirement benefits |
|
465.8 |
|
|
|
473.3 |
|
Deferred tax liabilities |
|
2,697.2 |
|
|
|
2,646.4 |
|
Other liabilities |
|
372.3 |
|
|
|
292.8 |
|
Total liabilities |
|
12,940.0 |
|
|
|
12,953.1 |
|
Redeemable noncontrolling interest |
|
27.9 |
|
|
|
— |
|
Molson Coors Beverage Company stockholders' equity |
|
|
|
||||
Capital stock |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Class A common stock, |
|
— |
|
|
|
— |
|
Class B common stock, |
|
2.1 |
|
|
|
2.1 |
|
Class A exchangeable shares, no par value (issued: 2.7 shares and 2.7 shares, respectively) |
|
100.8 |
|
|
|
102.2 |
|
Class B exchangeable shares, no par value (issued: 9.4 shares and 11.0 shares, respectively) |
|
352.3 |
|
|
|
413.3 |
|
Paid-in capital |
|
7,108.4 |
|
|
|
7,006.4 |
|
Retained earnings |
|
7,484.3 |
|
|
|
6,894.1 |
|
Accumulated other comprehensive income (loss) |
|
(1,116.3 |
) |
|
|
(1,205.5 |
) |
Class B common stock held in treasury at cost (13.9 shares and 10.5 shares, respectively) |
|
(735.6 |
) |
|
|
(522.9 |
) |
Total Molson Coors Beverage Company stockholders' equity |
|
13,196.0 |
|
|
|
12,689.7 |
|
Noncontrolling interests |
|
211.2 |
|
|
|
225.5 |
|
Total equity |
|
13,407.2 |
|
|
|
12,915.2 |
|
Total liabilities and equity |
$ |
26,375.1 |
|
|
$ |
25,868.3 |
|
|
|
|
|
||||
| CASH FLOW STATEMENTS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(In millions) (Unaudited) |
For the years ended |
||||||
|
December 31,
|
|
December 31,
|
||||
Cash flows from operating activities |
|
|
|
||||
Net income (loss) including noncontrolling interests |
$ |
956.4 |
|
|
$ |
(186.5 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
||||
Depreciation and amortization |
|
682.8 |
|
|
|
684.8 |
|
Amortization of debt issuance costs and discounts |
|
5.7 |
|
|
|
7.7 |
|
Share-based compensation |
|
44.9 |
|
|
|
33.6 |
|
Goodwill impairment |
|
— |
|
|
|
845.0 |
|
(Gain) loss on sale or impairment of property, plant, equipment and other assets, net |
|
181.9 |
|
|
|
18.6 |
|
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net |
|
88.3 |
|
|
|
236.4 |
|
Equity (income) loss |
|
(12.0 |
) |
|
|
(4.7 |
) |
Income tax (benefit) expense |
|
296.1 |
|
|
|
124.0 |
|
Income tax (paid) received |
|
(244.8 |
) |
|
|
(76.6 |
) |
Interest expense, excluding amortization of debt issuance costs and discounts |
|
228.3 |
|
|
|
242.9 |
|
Interest paid |
|
(229.0 |
) |
|
|
(240.0 |
) |
Change in current assets and liabilities (net of impact of business combinations) and other |
|
80.4 |
|
|
|
(183.2 |
) |
Net cash provided by (used in) operating activities |
|
2,079.0 |
|
|
|
1,502.0 |
|
Cash flows from investing activities |
|
|
|
||||
Additions to property, plant and equipment |
|
(671.5 |
) |
|
|
(661.4 |
) |
Proceeds from sales of property, plant, equipment and other assets |
|
10.9 |
|
|
|
32.2 |
|
Acquisition of business, net of cash acquired |
|
(63.7 |
) |
|
|
— |
|
Other |
|
(117.4 |
) |
|
|
4.1 |
|
Net cash provided by (used in) investing activities |
|
(841.7 |
) |
|
|
(625.1 |
) |
Cash flows from financing activities |
|
|
|
||||
Exercise of stock options under equity compensation plans |
|
7.9 |
|
|
|
3.1 |
|
Dividends paid |
|
(354.7 |
) |
|
|
(329.3 |
) |
Payments for purchases of treasury stock |
|
(205.8 |
) |
|
|
(51.5 |
) |
Payments on debt and borrowings |
|
(404.8 |
) |
|
|
(509.1 |
) |
Proceeds on debt and borrowings |
|
7.0 |
|
|
|
7.0 |
|
Net proceeds from (payments on) revolving credit facilities and commercial paper |
|
— |
|
|
|
(3.7 |
) |
Other |
|
(31.0 |
) |
|
|
(6.0 |
) |
Net cash provided by (used in) financing activities |
|
(981.4 |
) |
|
|
(889.5 |
) |
Effect of foreign exchange rate changes on cash and cash equivalents |
|
13.0 |
|
|
|
(24.8 |
) |
Net increase (decrease) in cash and cash equivalents |
|
268.9 |
|
|
|
(37.4 |
) |
Balance at beginning of year |
|
600.0 |
|
|
|
637.4 |
|
Balance at end of year |
$ |
868.9 |
|
|
$ |
600.0 |
|
|
|
|
|
||||
| SUMMARIZED SEGMENT RESULTS (volume and $ in millions) (Unaudited) | ||||||||||||||||||||||||||
|
Q4 2023 |
Q4 2022 |
Reported
|
FX
|
Constant
|
|
Full year
|
Full year
|
Reported
|
FX
|
Constant
|
|||||||||||||||
Net sales(1) |
$ |
2,231.1 |
|
$ |
2,131.3 |
|
4.7 |
|
$ |
(0.7 |
) |
4.7 |
|
|
$ |
9,425.2 |
|
$ |
8,711.5 |
|
8.2 |
|
$ |
(46.5 |
) |
8.7 |
COGS(2) |
|
(1,351.5 |
) |
|
(1,332.4 |
) |
(1.4 |
) |
|
|
|
|
(5,684.0 |
) |
|
(5,445.2 |
) |
(4.4 |
) |
|
|
|||||
MG&A |
|
(528.2 |
) |
|
(455.3 |
) |
(16.0 |
) |
|
|
|
|
(2,186.3 |
) |
|
(2,079.1 |
) |
(5.2 |
) |
|
|
|||||
Income (loss) before income taxes |
$ |
362.5 |
|
$ |
(499.2 |
) |
N/M |
|
$ |
(0.9 |
) |
N/M |
|
|
$ |
1,566.7 |
|
$ |
312.9 |
|
400.7 |
|
$ |
(1.5 |
) |
401.2 |
Underlying income (loss) before income taxes(3) |
$ |
363.0 |
|
$ |
346.5 |
|
4.8 |
|
$ |
(0.9 |
) |
5.0 |
|
|
$ |
1,578.6 |
|
$ |
1,239.4 |
|
27.4 |
|
$ |
(2.0 |
) |
27.5 |
Financial volume(1)(4) |
|
14.773 |
|
|
14.456 |
|
2.2 |
|
|
|
|
|
62.491 |
|
|
60.323 |
|
3.6 |
|
|
|
|||||
Brand volume |
|
14.531 |
|
|
13.624 |
|
6.7 |
|
|
|
|
|
59.917 |
|
|
57.382 |
|
4.4 |
|
|
|
|||||
EMEA&APAC |
Q4 2023 |
Q4 2022 |
Reported
|
FX
|
Constant
|
|
Full year
|
Full year
|
Reported
|
FX
|
Constant
|
|||||||||||||||
Net sales(1) |
$ |
566.6 |
|
$ |
503.2 |
|
12.6 |
|
$ |
30.1 |
|
6.6 |
|
|
$ |
2,296.1 |
|
$ |
2,005.2 |
|
14.5 |
|
$ |
56.0 |
|
11.7 |
COGS(2) |
|
(396.8 |
) |
|
(356.1 |
) |
(11.4 |
) |
|
|
|
|
(1,575.0 |
) |
|
(1,386.4 |
) |
(13.6 |
) |
|
|
|||||
MG&A |
|
(155.0 |
) |
|
(120.2 |
) |
(29.0 |
) |
|
|
|
|
(593.6 |
) |
|
(539.7 |
) |
(10.0 |
) |
|
|
|||||
Income (loss) before income taxes |
$ |
(147.4 |
) |
$ |
12.4 |
|
N/M |
|
$ |
(10.7 |
) |
N/M |
|
|
$ |
(41.1 |
) |
$ |
61.0 |
|
N/M |
|
$ |
(5.3 |
) |
N.M |
Underlying income (loss) before income taxes(3) |
$ |
15.3 |
|
$ |
28.1 |
|
(45.6 |
) |
$ |
2.0 |
|
(52.7 |
) |
|
$ |
126.8 |
|
$ |
73.1 |
|
73.5 |
|
$ |
7.1 |
|
63.7 |
Financial volume(1)(4) |
|
5.077 |
|
|
5.232 |
|
(3.0 |
) |
|
|
|
|
21.286 |
|
|
21.955 |
|
(3.0 |
) |
|
|
|||||
Brand volume |
|
5.001 |
|
|
5.111 |
|
(2.2 |
) |
|
|
|
|
20.940 |
|
|
21.714 |
|
(3.6 |
) |
|
|
|||||
Unallocated & Eliminations |
Q4 2023 |
Q4 2022 |
Reported
|
FX
|
Constant
|
|
Full year
|
Full year
|
Reported
|
FX
|
Constant
|
|||||||||||||||
Net sales |
$ |
(6.9 |
) |
$ |
(5.0 |
) |
(38.0 |
) |
|
|
|
$ |
(19.2 |
) |
$ |
(15.7 |
) |
(22.3 |
) |
|
|
|||||
COGS(2) |
|
(9.5 |
) |
|
(17.3 |
) |
45.1 |
|
|
|
|
|
(74.3 |
) |
|
(214.2 |
) |
65.3 |
|
|
|
|||||
Income (loss) before income taxes |
$ |
(49.6 |
) |
$ |
(77.3 |
) |
35.8 |
|
$ |
8.8 |
|
24.5 |
|
|
$ |
(273.1 |
) |
$ |
(436.4 |
) |
37.4 |
|
$ |
15.9 |
|
33.8 |
Underlying income (loss) before income taxes(3) |
$ |
(32.5 |
) |
$ |
(46.0 |
) |
29.3 |
|
$ |
9.1 |
|
9.6 |
|
|
$ |
(174.2 |
) |
$ |
(207.7 |
) |
16.1 |
|
$ |
14.0 |
|
9.4 |
Financial volume |
|
(0.001 |
) |
|
(0.001 |
) |
— |
|
|
|
|
|
(0.005 |
) |
|
(0.006 |
) |
16.7 |
|
|
|
|||||
Consolidated |
Q4 2023 |
Q4 2022 |
Reported
|
FX
|
Constant
|
|
Full year
|
Full year
|
Reported
|
FX
|
Constant
|
|||||||||||||||
Net sales |
$ |
2,790.8 |
|
$ |
2,629.5 |
|
6.1 |
|
$ |
29.4 |
|
5.0 |
|
|
$ |
11,702.1 |
|
$ |
10,701.0 |
|
9.4 |
|
$ |
9.5 |
|
9.3 |
COGS |
|
(1,757.8 |
) |
|
(1,705.8 |
) |
(3.0 |
) |
|
|
|
|
(7,333.3 |
) |
|
(7,045.8 |
) |
(4.1 |
) |
|
|
|||||
MG&A |
|
(683.2 |
) |
|
(575.5 |
) |
(18.7 |
) |
|
|
|
|
(2,779.9 |
) |
|
(2,618.8 |
) |
(6.2 |
) |
|
|
|||||
Income (loss) before income taxes |
$ |
165.5 |
|
$ |
(564.1 |
) |
N/M |
|
$ |
(2.8 |
) |
N/M |
|
|
$ |
1,252.5 |
|
$ |
(62.5 |
) |
N/M |
|
$ |
9.1 |
|
N/M |
Underlying income (loss) before income taxes(3) |
$ |
345.8 |
|
$ |
328.6 |
|
5.2 |
|
$ |
10.2 |
|
2.1 |
|
|
$ |
1,531.2 |
|
$ |
1,104.8 |
|
38.6 |
|
$ |
19.1 |
|
36.9 |
Financial volume(4) |
|
19.849 |
|
|
19.687 |
|
0.8 |
|
|
|
|
|
83.772 |
|
|
82.272 |
|
1.8 |
|
|
|
|||||
Brand volume |
|
19.532 |
|
|
18.735 |
|
4.3 |
|
|
|
|
|
80.857 |
|
|
79.096 |
|
2.2 |
|
|
|
|||||
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 |
| WORLDWIDE BRAND AND FINANCIAL VOLUME | |||||||||||||||||
(In millions of hectoliters) (Unaudited) |
For the three months ended |
|
For the years ended |
||||||||||||||
|
December 31,
|
|
December 31,
|
|
Change |
|
December 31,
|
|
December 31,
|
|
Change |
||||||
Financial Volume |
19.849 |
|
|
19.687 |
|
|
0.8 |
% |
|
83.772 |
|
|
82.272 |
|
|
1.8 |
% |
Contract brewing and wholesale/factored volume |
(1.474 |
) |
|
(1.663 |
) |
|
(11.4 |
)% |
|
(6.756 |
) |
|
(6.793 |
) |
|
(0.5 |
)% |
Royalty volume |
0.966 |
|
|
0.963 |
|
|
0.3 |
% |
|
3.618 |
|
|
3.731 |
|
|
(3.0 |
)% |
Sales-To-Wholesaler to Sales-To-Retail adjustment |
0.191 |
|
|
(0.252 |
) |
|
N/M |
|
|
0.223 |
|
|
(0.114 |
) |
|
N/M |
|
Total Worldwide Brand Volume |
19.532 |
|
|
18.735 |
|
|
4.3 |
% |
|
80.857 |
|
|
79.096 |
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
N/M = Not meaningful |
|||||||||||||||||
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
We also utilize net sales per hectoliter and cost of goods sold per hectoliter, as well as the year over year changes in such metrics, as key metrics for analyzing our results. These metrics are calculated as net sales and cost of goods sold, respectively, per our consolidated statement of operations divided by financial volume for the respective period. We believe these metrics are important and useful for investors and management because it provides an indication of the trends in pricing and sales mix on our net sales and the trends of sales mix and other cost impacts such as inflation on our cost of goods sold.
USE OF NON-GAAP MEASURES
In addition to financial measures presented on the basis of accounting principles generally accepted in the
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, potential or incurred losses related to certain litigation accruals and settlements and gains and losses on sales of non-operating assets, among other items included in ourU.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 the impact of 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 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 non-GAAP adjustment items (as defined above), 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 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 Properties 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, & Income (Loss) Before Income Taxes) – 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), 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 inU.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 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
RECONCILIATION TO NEAREST |
|||||||||||||||
Reconciliation by Line Item |
|||||||||||||||
(In millions, except per share data) (Unaudited) |
For the three months ended December 31, 2023 |
||||||||||||||
|
Cost of goods
|
Marketing,
|
Income (loss)
|
Net income
|
Net income (loss)
|
||||||||||
Reported ( |
$ |
(1,757.8 |
) |
$ |
(683.2 |
) |
$ |
165.5 |
|
$ |
103.3 |
|
$ |
0.48 |
|
Adjustments to arrive at underlying |
|
|
|
|
|
||||||||||
Restructuring |
|
— |
|
|
— |
|
|
2.3 |
|
|
2.3 |
|
|
0.01 |
|
Intangible and tangible asset impairments, excluding goodwill(1) |
|
— |
|
|
— |
|
|
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 |
|
|
— |
|
Total |
$ |
17.1 |
|
$ |
0.4 |
|
$ |
180.3 |
|
$ |
180.3 |
|
$ |
0.83 |
|
Tax effects on non-GAAP adjustments |
|
— |
|
|
— |
|
|
— |
|
|
(37.4 |
) |
|
(0.17 |
) |
Discrete tax items |
|
— |
|
|
— |
|
|
— |
|
|
11.2 |
|
|
0.05 |
|
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, 2023 |
||||||||||||||
|
Cost of goods
|
Marketing,
|
Income (loss)
|
Net income
|
Net income (loss)
|
||||||||||
Reported ( |
$ |
(7,333.3 |
) |
$ |
(2,779.9 |
) |
$ |
1,252.5 |
$ |
948.9 |
|
$ |
4.37 |
|
|
Adjustments to arrive at underlying |
|
|
|
|
|
||||||||||
Restructuring |
|
— |
|
|
— |
|
|
4.1 |
|
4.1 |
|
|
0.02 |
|
|
Intangible and tangible asset impairments, excluding goodwill(1) |
|
— |
|
|
— |
|
|
160.8 |
|
160.8 |
|
|
0.74 |
|
|
Gains and (losses) on disposals(2) |
|
— |
|
|
— |
|
|
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 |
|
|
Total |
$ |
98.9 |
|
$ |
5.4 |
|
$ |
278.7 |
$ |
278.7 |
|
|
1.28 |
|
|
Tax effects on non-GAAP adjustments |
|
— |
|
|
— |
|
|
— |
|
(57.4 |
) |
|
(0.26 |
) |
|
Discrete tax items |
|
— |
|
|
— |
|
|
— |
|
9.2 |
|
|
0.04 |
|
|
Underlying (Non-GAAP) |
$ |
(7,234.4 |
) |
$ |
(2,774.5 |
) |
$ |
1,531.2 |
$ |
1,179.4 |
|
$ |
5.43 |
|
|
|
|
|
|
|
|
||||||||||
(1) |
During the three months ended December 31, 2023, we recorded a |
(2) |
During the third quarter of 2023, we sold our controlling interest in the Truss joint venture within our |
| Reconciliation to Underlying Income (Loss) Before Income Taxes by Segment | |||||||||||||
(In millions) (Unaudited) |
For the three months ended December 31, 2023 |
||||||||||||
|
|
|
EMEA&APAC |
|
Unallocated |
|
Consolidated |
||||||
Income (loss) before income taxes |
$ |
362.5 |
|
$ |
(147.4 |
) |
|
$ |
(49.6 |
) |
|
$ |
165.5 |
Add/(less): |
|
|
|
|
|
|
|
||||||
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 |
$ |
363.0 |
|
$ |
15.3 |
|
|
$ |
(32.5 |
) |
|
$ |
345.8 |
|
|
|
|
|
|
|
|
||||||
(In millions) (Unaudited) |
For the year ended December 31, 2023 |
||||||||||||
|
|
|
EMEA&APAC |
|
Unallocated |
|
Consolidated |
||||||
Income (loss) before income taxes |
$ |
1,566.7 |
|
$ |
(41.1 |
) |
|
$ |
(273.1 |
) |
|
$ |
1,252.5 |
Add/(less): |
|
|
|
|
|
|
|
||||||
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 |
$ |
1,578.6 |
|
$ |
126.8 |
|
|
$ |
(174.2 |
) |
|
$ |
1,531.2 |
|
|
|
|
|
|
|
|
||||||
(1) |
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) |
Reflects a |
Effective Tax Rate Reconciliation |
|||||
(Unaudited) |
For the year ended |
||||
|
December 31,
|
|
December 31,
|
||
|
23.6 |
% |
|
(198.4 |
%) |
Add/(less): |
|
|
|
||
Tax effect of non-GAAP adjustment items(1) |
(0.4 |
%) |
|
217.7 |
% |
Discrete tax items(1)(2) |
(0.7 |
%) |
|
(0.2 |
%) |
Underlying (Non-GAAP) Effective Tax Rate |
22.5 |
% |
|
19.1 |
% |
|
|
|
|
||
(1) |
Adjustments related to the tax effect of non-GAAP adjustment items, which includes the non-cash |
(2) |
The change in tax effect of discrete tax items for the year ended December 31, 2023 was primarily due to the recognition of approximately |
| Underlying Free Cash Flow | ||||||||
(In millions) (Unaudited) |
For the years ended |
|||||||
|
|
December 31,
|
|
December 31,
|
||||
|
Net Cash Provided by (Used In) Operating Activities |
$ |
2,079.0 |
|
|
$ |
1,502.0 |
|
Less: |
Additions to properties(1) |
|
(671.5 |
) |
|
|
(661.4 |
) |
Add/Less: |
Cash impact of non-GAAP adjustment items(2) |
|
12.5 |
|
|
|
12.3 |
|
Non-GAAP: |
Underlying Free Cash Flow |
$ |
1,420.0 |
|
|
$ |
852.9 |
|
|
|
|
|
|
||||
| (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, 2023 and December 31, 2022. |
Net Debt and Net Debt to Underlying EBITDA Ratio |
|||||||
(In millions except net debt to underlying EBITDA ratio) (Unaudited) |
As of |
||||||
|
|
December 31,
|
December 31,
|
||||
|
Current portion of long-term debt and short-term borrowings |
$ |
911.8 |
$ |
397.1 |
||
Add: |
Long-term debt |
|
5,312.1 |
|
6,165.2 |
||
Less: |
Cash and cash equivalents |
|
868.9 |
|
600.0 |
||
|
Net debt |
$ |
5,355.0 |
$ |
5,962.3 |
||
|
Q4 Underlying EBITDA |
$ |
566.1 |
$ |
555.5 |
||
|
Q3 Underlying EBITDA |
$ |
742.9 |
$ |
593.5 |
||
|
Q2 Underlying EBITDA |
$ |
725.2 |
$ |
566.4 |
||
|
Q1 Underlying EBITDA |
$ |
388.4 |
$ |
320.5 |
||
Non-GAAP: |
Underlying EBITDA(1) |
$ |
2,422.6 |
$ |
2,035.9 |
||
|
Net debt to underlying EBITDA ratio |
|
2.21 |
|
2.93 |
||
|
|
|
|
||||
| (1) | Represents underlying EBITDA on a trailing twelve month basis. |
Underlying EBITDA Reconciliation |
|||||||||
($ in millions) (Unaudited) |
For the three months ended |
||||||||
|
December 31,
|
|
December 31,
|
|
Change |
||||
|
$ |
103.3 |
|
$ |
(590.5 |
) |
|
N/M |
|
Add: Net income (loss) attributable to noncontrolling interests |
|
2.2 |
|
|
0.7 |
|
|
214.3 |
% |
|
|
105.5 |
|
|
(589.8 |
) |
|
N/M |
|
Add: Interest expense (income), net |
|
46.1 |
|
|
57.7 |
|
|
(20.1 |
)% |
Add: Income tax expense (benefit) |
|
60.0 |
|
|
25.7 |
|
|
133.5 |
% |
Add: Depreciation and amortization |
|
174.2 |
|
|
169.2 |
|
|
3.0 |
% |
Adjustments included in underlying income(1) |
|
180.3 |
|
|
892.7 |
|
|
(79.8 |
)% |
Underlying EBITDA |
$ |
566.1 |
|
$ |
555.5 |
|
|
1.9 |
% |
|
|
|
|
|
|
||||
N/M = Not meaningful |
|||||||||
(1) |
Includes adjustments to income (loss) before income taxes related to non-GAAP adjustment items. See Reconciliations to Nearest |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213388649/en/
Investor Relations
Greg Tierney, (414) 931-3303
Traci Mangini, (415) 308-0151
News Media
Rachel Dickens, (314) 452-9673
Source: Molson Coors
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