Molson Coors Beverage Company Reports 2024 Third Quarter Results
Molson Coors reported Q3 2024 results with net sales declining 7.8% to $3.04 billion and income before taxes decreasing 39.1% to $331.4 million. The company's U.S. financial volume declined 17.9%, impacted by macroeconomic challenges and contract brewing wind-down. Despite challenges, EMEA&APAC and Canada segments showed strong performance. The company adjusted its 2024 top-line guidance downward to approximately -1% but reaffirmed bottom-line guidance, narrowing to the higher end of mid-single-digit growth for underlying EPS. Molson Coors returned $717 million to shareholders through dividends and share repurchases in the first nine months.
Molson Coors ha riportato i risultati del terzo trimestre 2024, con un calo delle vendite nette del 7,8% a 3,04 miliardi di dollari e un reddito prima delle tasse in diminuzione del 39,1% a 331,4 milioni di dollari. Il volumi finanziari negli Stati Uniti dell'azienda sono diminuiti del 17,9%, influenzati da sfide macroeconomiche e dalla chiusura delle contrattazioni di birra. Nonostante queste difficoltà, i segmenti EMEA&APAC e Canada hanno mostrato prestazioni solide. L'azienda ha rivisto al ribasso le previsioni di fatturato per il 2024 a circa -1%, ma ha confermato le previsioni sul profitto, restringendole all'estremità superiore della crescita a cifra singola medio-bassa per l'EPS sottostante. Molson Coors ha restituito 717 milioni di dollari agli azionisti attraverso dividendi e riacquisti di azioni nei primi nove mesi.
Molson Coors informó los resultados del tercer trimestre de 2024, con ventas netas que disminuyeron un 7.8% a 3.04 mil millones de dólares y un ingreso antes de impuestos que bajó un 39.1% a 331.4 millones de dólares. El volumen financiero en EE. UU. de la compañía cayó un 17.9%, afectado por desafíos macroeconómicos y la liquidación de la elaboración contratada. A pesar de los retos, los segmentos de EMEA&APAC y Canadá mostraron un rendimiento sólido. La empresa ajustó a la baja su pronóstico de ingresos para 2024 a aproximadamente -1%, pero reafirmó su pronóstico de ganancias, acotándolo al extremo superior del crecimiento de un solo dígito medio para el EPS subyacente. Molson Coors devolvió 717 millones de dólares a los accionistas a través de dividendos y recompra de acciones en los primeros nueve meses.
몰슨 쿠어스는 2024년 3분기 실적을 발표하며, 순매출이 7.8% 감소한 30억 4천만 달러, 세전 수익이 39.1% 줄어든 3억 3천 1백 40만 달러라고 보고했습니다. 회사의 미국 금융 규모는 17.9% 감소했으며, 이는 거시경제적 문제와 계약 양조 종료의 영향을 받았습니다. 어려움에도 불구하고, EMEA&APAC 및 캐나다 부문은 강력한 성과를 보였습니다. 회사는 2024년 매출 전망을 약 -1%로 하향 조정했지만, 기본 EPS에 대한 중간 단일 디지털 성장의 상위 범위로 좁힌 순이익 가이던스를 재확인했습니다. 몰슨 쿠어스는 처음 아홉 달 동안 배당금과 주식 매입을 통해 주주에게 7억 1천7백만 달러를 반환했습니다.
Molson Coors a annoncé les résultats du troisième trimestre 2024, avec des ventes nettes en baisse de 7,8 % à 3,04 milliards de dollars et un revenu avant impôts diminué de 39,1 % à 331,4 millions de dollars. Le volume financier aux États-Unis de l'entreprise a chuté de 17,9 %, touché par des défis macroéconomiques et l'arrêt de la production sous contrat. Malgré ces difficultés, les segments EMEA&APAC et Canada ont affiché de solides performances. L'entreprise a révisé à la baisse ses prévisions de chiffre d'affaires pour 2024 à environ -1 %, mais a réaffirmé ses prévisions de bénéfice, les resserrant à la fourchette haute de la croissance à un chiffre pour l'EPS sous-jacent. Molson Coors a retourné 717 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions au cours des neuf premiers mois.
Molson Coors hat die Ergebnisse für das dritte Quartal 2024 veröffentlicht, mit einem Rückgang des Nettoumsatzes um 7,8% auf 3,04 Milliarden Dollar und einem Rückgang des Einkommens vor Steuern um 39,1% auf 331,4 Millionen Dollar. Das finanzielle Volumen in den USA des Unternehmens sank um 17,9%, was auf makroökonomische Herausforderungen und das Ende des Vertragsbrauens zurückzuführen ist. Trotz dieser Herausforderungen zeigten die Segmente EMEA&APAC und Kanada eine starke Leistung. Das Unternehmen hat seine Umsatzprognose für 2024 auf etwa -1% nach unten angepasst, die Gewinnprognose jedoch bekräftigt und auf den höheren Bereich des mittleren einstelligen Wachstums für das zugrunde liegende EPS eingeschränkt. Molson Coors gab in den ersten neun Monaten 717 Millionen Dollar an Aktionäre durch Dividenden und Aktienrückkäufe zurück.
- Strong performance in EMEA&APAC and Canada segments
- Returned $717 million to shareholders through dividends and share repurchases
- Reaffirmed bottom-line guidance with EPS growth expected at higher end of mid-single-digit range
- Core power brands retained substantial market share in U.S.
- Net sales declined 7.8% to $3.04 billion
- Income before taxes decreased 39.1% to $331.4 million
- U.S. financial volume declined 17.9%
- Downward revision of 2024 top-line guidance to -1%
Insights
Molson Coors reported concerning Q3 results with net sales declining
Key concerns include:
- Reduced 2024 top-line guidance to down
1% from previous low single-digit growth forecast - Macroeconomic headwinds impacting U.S. beer industry during peak season
- Significant decline in underlying EPS to
$1.80 vs$1.92 last year
Positive factors include strong cash flow with
The divergence between international and domestic performance is noteworthy. While the U.S. market struggles with macroeconomic pressures, EMEA&APAC shows strength through premium innovations like Madri in the UK and Ožujsko in Croatia. This geographic diversification provides some buffer against U.S. weakness.
The company's premiumization strategy faces challenges in the current economic environment, particularly in the U.S. where consumers may be trading down. However, successful premium brand performance in international markets suggests the strategy remains viable long-term, though execution timing may need adjustment for market conditions.
Third Quarter Net Sales Declined
Continues to Return Cash to Shareholders Through Dividend and Share Repurchases of
Reaffirms 2024 Full Year Guidance for Bottom-Line Growth including Narrowing to the High End for Underlying Diluted Earnings per Share While Reducing Top-Line Guidance Reflecting Macroeconomic Challenges in the
2024 THIRD QUARTER FINANCIAL HIGHLIGHTS1
-
Net sales decreased
7.8% reported. -
U.S. GAAP income before income taxes of decreased$331.4 million 39.1% reported. -
Underlying (Non-GAAP) income before income taxes of
decreased$479.5 million 8.7% in constant currency. -
U.S. GAAP net income attributable to MCBC of ,$199.8 million per share on a diluted basis. Underlying (Non-GAAP) diluted earnings per share of$0.96 per share decreased$1.80 6.2% .
____________________ | ||
1 |
See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency. |
CEO AND CFO PERSPECTIVES
In the third quarter of 2024, net sales declined
Given the impacts the macroeconomic environment has had on the
Despite the
In
In EMEA&APAC, continued growth of our highly successful above premium innovation Madri in the
With strong cash flow, we continued to invest in our business, supporting our brands globally and building capabilities that help drive long-term, sustainable and profitable growth. We did this while returning
Gavin Hattersley, President and Chief Executive Officer Statement:
"We have continued to advance our Acceleration Plan and remain confident in our long-term growth potential. While the
Tracey Joubert, Chief Financial Officer Statement:
"We are reaffirming our bottom-line growth and Underlying Free Cash Flow guidance for this year, while continuing to invest in our business to achieve our long-term financial and strategic goals and return cash to shareholders. While the
CONSOLIDATED PERFORMANCE - THIRD QUARTER 2024 |
||||||||||||||||
|
For the Three Months Ended |
|||||||||||||||
($ in millions, except per share data) (Unaudited) |
September 30,
|
|
September 30,
|
|
Reported
|
|
Foreign
|
|
Constant
|
|||||||
Net sales |
$ |
3,042.7 |
|
$ |
3,298.4 |
|
(7.8 |
)% |
|
$ |
1.2 |
|
|
(7.8 |
)% |
|
|
$ |
331.4 |
|
$ |
544.0 |
|
(39.1 |
)% |
|
$ |
(0.1 |
) |
|
(39.1 |
)% |
|
Underlying income (loss) before income taxes(1) |
$ |
479.5 |
|
$ |
525.4 |
|
(8.7 |
)% |
|
$ |
(0.4 |
) |
|
(8.7 |
)% |
|
|
$ |
199.8 |
|
$ |
430.7 |
|
(53.6 |
)% |
|
|
|
|
||||
Per diluted share |
$ |
0.96 |
|
$ |
1.98 |
|
(51.5 |
)% |
|
|
|
|
||||
Underlying net income (loss)(1) |
$ |
374.4 |
|
$ |
418.5 |
|
(10.5 |
)% |
|
|
|
|
||||
Per diluted share |
$ |
1.80 |
|
$ |
1.92 |
|
(6.2 |
)% |
|
|
|
|
||||
Financial volume(4) |
|
20.629 |
|
|
23.532 |
|
(12.3 |
)% |
|
|
|
|
||||
Brand volume(4) |
|
21.332 |
|
|
22.322 |
|
(4.4 |
)% |
|
|
|
|
|
For the Nine Months Ended |
|||||||||||||||
($ in millions, except per share data) (Unaudited) |
September 30,
|
|
September 30,
|
|
Reported
|
|
Foreign
|
|
Constant
|
|||||||
Net sales |
$ |
8,891.4 |
|
$ |
8,911.3 |
|
(0.2 |
)% |
|
$ |
1.6 |
|
|
(0.2 |
)% |
|
|
$ |
1,156.7 |
|
$ |
1,087.0 |
|
6.4 |
% |
|
$ |
(5.1 |
) |
|
6.9 |
% |
|
Underlying income (loss) before income taxes(1) |
$ |
1,269.5 |
|
$ |
1,185.4 |
|
7.1 |
% |
|
$ |
(5.2 |
) |
|
7.5 |
% |
|
|
$ |
834.6 |
|
$ |
845.6 |
|
(1.3 |
)% |
|
|
|
|
||||
Per diluted share |
$ |
3.96 |
|
$ |
3.89 |
|
1.8 |
% |
|
|
|
|
||||
Underlying net income (loss)(1) |
$ |
981.4 |
|
$ |
922.0 |
|
6.4 |
% |
|
|
|
|
||||
Per diluted share |
$ |
4.65 |
|
$ |
4.24 |
|
9.7 |
% |
|
|
|
|
||||
Financial volume(4) |
|
61.033 |
|
|
63.923 |
|
(4.5 |
)% |
|
|
|
|
||||
Brand volume(4) |
|
59.946 |
|
|
61.325 |
|
(2.2 |
)% |
|
|
|
|
(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) |
During the three months ended September 30, 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 |
|
|
The CBPL buyout was finalized on October 21, 2024, resulting in a cash payment of |
|
(4) |
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. |
QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS THIRD QUARTER 2023 RESULTS)
- Net sales: The following table highlights the drivers of the change in net sales for the three months ended September 30, 2024 compared to September 30, 2023 (in percentages):
Net Sales Drivers (unaudited) |
|||
Financial volume |
(12.3 |
%) |
|
Price and sales mix |
4.5 |
% |
|
Currency |
— |
% |
|
Total consolidated net sales |
(7.8 |
%) |
|
|
|
Net sales decreased
Financial volumes decreased
Price and sales mix favorably impacted net sales by
-
Cost of goods sold ("COGS"): decreased
5.7% on a reported basis, primarily due to lower financial volumes, partially offset by higher cost of goods sold per hectoliter. COGS per hectoliter: increased7.5% on a reported basis, primarily due to volume deleverage in theAmericas segment, unfavorable mix driven by lower contract brewing volumes in theAmericas segment, unfavorable changes in our unrealized mark-to-market commodity derivative positions of and cost inflation related to materials and manufacturing expenses, partially offset by cost savings initiatives. Underlying COGS per hectoliter: increased$34.4 million 5.6% in constant currency, primarily due to volume deleverage in theAmericas segment, unfavorable mix driven by lower contract brewing volumes in theAmericas segment and cost inflation related to materials and manufacturing expenses, partially offset by cost savings initiatives.
-
Marketing, general & administrative ("MG&A"): decreased
8.3% on a reported basis, primarily due to lower marketing investment resulting from cycling higher spend levels in the prior year and lower incentive compensation expense. Underlying MG&A: decreased8.4% in constant currency.
-
U.S. GAAP income (loss) before income taxes:U.S. GAAP income before income taxes decreased39.1% on a reported basis, primarily due to lower financial volumes, higher other operating expense as a result of the exit of ourU.S. craft businesses and related restructuring costs, higher interest expense driven by a adjustment to increase our mandatorily redeemable NCI liability to the final redemption value for CBPL, unfavorable changes in our unrealized mark-to-market commodity derivative positions of$45.8 million , a settlement loss of$34.4 million recorded as a result of Canadian pension plan annuity purchases and cost inflation related to materials and manufacturing expenses, partially offset by increased net pricing, lower MG&A expense and favorable sales mix.$34.0 million
-
Underlying income (loss) before income taxes: Underlying income before income taxes decreased
8.7% in constant currency, primarily due to lower financial volumes and cost inflation related to materials and manufacturing expenses, partially offset by increased net pricing, lower MG&A expenses and favorable sales mix.
- Effective Tax Rate and Underlying Effective Tax Rate
(Unaudited) |
For the Three Months Ended |
|||||
|
September 30,
|
|
September 30,
|
|||
|
31 |
% |
|
21 |
% |
|
Underlying effective tax rate(1) |
24 |
% |
|
20 |
% |
|
(1) See Appendix for definitions and reconciliations of non-GAAP financial measures. |
The increase in our third quarter
The increase in our third quarter Underlying effective tax rate was primarily due to a decrease in discrete tax benefit.
-
Net income (loss) attributable to MCBC per diluted share: Net income attributable to MCBC per diluted share declined
51.5% primarily due to a decrease inU.S. GAAP income before income taxes, a out of period adjustment to net income (loss) attributable to noncontrolling interests described above and an increase in the effective tax rate, partially offset by a decrease in the weighted average of diluted shares outstanding driven by share repurchases.$34.5 million
-
Underlying net income (loss) attributable to MCBC per diluted share: Underlying net income attributable to MCBC per diluted share declined
6.2% primarily due to a decrease in underlying income before income taxes as well as an increase in the underlying effective tax rate, partially offset by a decrease in the weighted average of diluted shares outstanding driven by share repurchases.
QUARTERLY SEGMENT HIGHLIGHTS (VERSUS THIRD QUARTER 2023 RESULTS)
Americas Segment Overview
The following table highlights the
|
For the Three Months Ended |
||||||||||||||
($ in millions, except per share data) (Unaudited) |
September 30,
|
|
September 30,
|
|
Reported
|
|
FX
|
|
Constant
|
||||||
Net sales(1) |
$ |
2,345.0 |
|
$ |
2,633.4 |
|
(11.0 |
) |
|
$ |
(7.4 |
) |
|
(10.7 |
) |
Income (loss) before income taxes(1) |
$ |
353.8 |
|
$ |
483.5 |
|
(26.8 |
) |
|
$ |
(1.5 |
) |
|
(26.5 |
) |
Underlying income (loss) before income taxes(1)(2) |
$ |
419.8 |
|
$ |
494.1 |
|
(15.0 |
) |
|
$ |
(1.5 |
) |
|
(14.7 |
) |
|
For the Nine Months Ended |
||||||||||||||
($ in millions, except per share data) (Unaudited) |
September 30,
|
|
September 30,
|
|
Reported
|
|
FX
|
|
Constant
|
||||||
Net sales(1) |
$ |
7,066.3 |
|
$ |
7,194.1 |
|
(1.8 |
) |
|
$ |
(13.5 |
) |
|
(1.6 |
) |
Income (loss) before income taxes(1) |
$ |
1,161.5 |
|
$ |
1,204.2 |
|
(3.5 |
) |
|
$ |
(3.9 |
) |
|
(3.2 |
) |
Underlying income (loss) before income taxes(1)(2) |
$ |
1,228.3 |
|
$ |
1,215.6 |
|
1.0 |
|
|
$ |
(3.9 |
) |
|
1.4 |
|
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 Third Quarter 2023 Results)
- Net sales: The following table highlights the drivers of the change in net sales for the three months ended September 30, 2024 compared to September 30, 2023 (in percentages):
Net Sales Drivers (unaudited) |
|||
Financial volume |
(15.6 |
%) |
|
Price and sales mix |
4.9 |
% |
|
Currency |
(0.3 |
%) |
|
Total |
(11.0 |
%) |
|
|
|
Net sales decreased
Financial volumes decreased
Price and sales mix favorably impacted net sales by
-
U.S. GAAP income (loss) before income taxes:U.S. GAAP income before income taxes declined26.8% on a reported basis primarily due to lower financial volumes, higher other operating expense as a result of the exit of ourU.S. craft businesses and related restructuring costs and cost inflation related to materials and manufacturing expenses, partially offset by lower MG&A expense, increased net pricing, favorable sales mix and cost savings initiatives. Lower MG&A expense was driven by lower marketing spend resulting from the cycling of higher spend levels in the prior year and lower incentive compensation expense.
-
Underlying income (loss) before income taxes: Underlying income before income taxes declined
14.7% in constant currency, primarily due to lower financial volumes and cost inflation related to materials and manufacturing expenses, partially offset by lower MG&A expense, increased net pricing, favorable sales mix and cost savings initiatives.
EMEA&APAC Segment Overview
The following table highlights the EMEA&APAC segment results for the three and nine months ended September 30, 2024 compared to September 30, 2023.
|
For the Three Months Ended |
||||||||||||||
($ in millions, except per share data) (Unaudited) |
September 30,
|
|
September 30,
|
|
Reported
|
|
FX
|
|
Constant
|
||||||
Net sales(1) |
$ |
704.4 |
|
$ |
670.4 |
|
5.1 |
|
|
$ |
8.6 |
|
3.8 |
|
|
Income (loss) before income taxes(1) |
$ |
51.6 |
|
$ |
67.5 |
|
(23.6 |
) |
|
$ |
1.0 |
|
|
(25.0 |
) |
Underlying income (loss) before income taxes(1)(2) |
$ |
98.0 |
|
$ |
69.1 |
|
41.8 |
|
|
$ |
0.9 |
|
|
40.5 |
|
|
For the Nine Months Ended |
||||||||||||||
($ in millions, except per share data) (Unaudited) |
September 30,
|
|
September 30,
|
|
Reported
|
|
FX
|
|
Constant
|
||||||
Net sales(1) |
$ |
1,842.4 |
|
$ |
1,729.5 |
|
6.5 |
|
$ |
15.1 |
|
|
5.7 |
||
Income (loss) before income taxes(1) |
$ |
121.8 |
|
$ |
106.3 |
|
14.6 |
|
|
$ |
(2.8 |
) |
|
17.2 |
|
Underlying income (loss) before income taxes(1)(2) |
$ |
161.7 |
|
$ |
111.5 |
|
45.0 |
|
|
$ |
(2.6 |
) |
|
47.4 |
|
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 Third Quarter 2023 Results)
- Net sales: The following table highlights the drivers of the change in net sales for the three months ended September 30, 2024 compared to September 30, 2023 (in percentages):
Net Sales Drivers (unaudited) |
|||
Financial volume |
(3.0 |
%) |
|
Price and sales mix |
6.8 |
% |
|
Currency |
1.3 |
% |
|
Total EMEA&APAC net sales |
5.1 |
% |
|
|
|
Net sales increased
Financial volumes decreased
Price and sales mix favorably impacted net sales by
-
U.S. GAAP income (loss) before income taxes:U.S. GAAP income before income taxes declined23.6% on a reported basis, primarily due to higher interest expense as a result of the adjustment of to increase our mandatorily redeemable NCI liability to the final redemption value related to the CBPL buyout, lower financial volumes and higher MG&A expense, partially offset by increased net pricing and favorable sales mix.$45.8 million
-
Underlying income (loss) before income taxes: Underlying income before income taxes improved
40.5% in constant currency, primarily due to increased net pricing and favorable sales mix, partially offset by lower financial volumes and higher MG&A expense.
CASH FLOW AND LIQUIDITY HIGHLIGHTS
-
U.S. GAAP cash from operations: Net cash provided by operating activities was for the nine months ended September 30, 2024 which decreased$1,415.8 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 addbacks and the timing of income taxes paid. The unfavorable timing of working capital was primarily driven by the timing of cash paid for our payables as well as higher payments for 2023 annual incentive compensation, partially offset by the timing of cash receipts.$188.7 million
-
Underlying free cash flow: Cash generated of
for the nine months ended September 30, 2024 represents a decrease in cash provided of$856.0 million from the prior year, which was primarily due to lower net cash provided by operating activities and an increase in capital expenditures driven by the timing of capital projects.$265.6 million
-
Debt: Upon maturity on July 15, 2024, we repaid our
EUR 800 million 1.25% senior notes using the proceeds from ourEUR 800 million 3.8% senior notes issued on May 29, 2024 and cash on hand. Total debt as of September 30, 2024 was and cash and cash equivalents totaled$6,240.7 million , resulting in net debt of$1,021.7 million and a net debt to underlying EBITDA ratio of 2.10x. As of September 30, 2023, our net debt to underlying EBITDA ratio was 2.23x.$5,219.0 million
-
Dividends: We paid cash dividends of
and$279.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.$266.7 million
-
Share Repurchase Program: We paid
and$437.4 million , including brokerage commissions, for share repurchases during the nine months ended September 30, 2024 and September 30, 2023, respectively. The current year share repurchases were made under the share repurchase program approved on September 29, 2023 and the prior year share repurchases were made under the share repurchase program approved on February 17, 2022.$60.9 million
2024 OUTLOOK
As a result of the impact of the macroeconomic environment on the
-
Net Sales: Approximate
1% decline versus 2023 on a constant currency basis from our previous guidance of low single-digit increase versus 2023 on a constant currency basis. The adjustment is due to the softness in theU.S. beer industry over the peak selling season.
- Underlying income (loss) before income taxes: mid single-digit increase compared to 2023 on a constant currency basis.
- Underlying diluted earnings per share: mid single-digit increase compared to 2023 but narrowing to the high end of the range.
-
Capital expenditures:
incurred, plus or minus$750 million 5% .
-
Underlying free cash flow:
, plus or minus$1.2 billion 10% .
-
Underlying depreciation and amortization:
, plus or minus$700 million 5% .
-
Underlying net interest income (expense), net:
expense, plus or minus$210 million 5% .
-
Underlying effective tax rate: in the range of
23% to25% for 2024.
These targets are based on the following key considerations:
-
In the
U.S. , our sales to wholesalers were deliberately ahead of sales to retailers by about 1.1 million hectoliters in the first half of the year as compared to sales to wholesalers being behind sales to retailers by about 0.4 million in the first half of 2023. Of the 1.1 million hectoliters, 0.9 million hectoliters reversed in the third quarter. As such, we expect sales to retailers to outpace sales to wholesalers by about 0.2 million hectoliters in the fourth quarter.
-
We expect a remaining headwind of about 0.5 million hectoliters to
Americas financial volume related to the termination of the Pabst contract brewing agreement at year end.
-
Underlying COGS per hectoliter are expected to be higher in full year 2024 as compared to full year 2023. This is due to expected continued, albeit moderating inflation, mix impacts from the wind down of contract brewing volume and volume deleverage related to the
U.S. shipment drivers previously mentioned.
-
MG&A expense is expected to be lower than 2023 as we cycle both higher marketing investment which was up approximately
in the fourth quarter last year to support the momentum in our brands, as well as higher incentive compensation in the prior year.$50 million
SUBSEQUENT EVENTS
The CBPL buyout was finalized on October 21, 2024, resulting in a cash payment of
In October 2024, we increased our investment in ZOA Energy, LLC ("ZOA") for cash consideration of
NOTES
Unless otherwise indicated in this release, all $ amounts are in
2024 THIRD 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 third 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, Molson Coors Beverage Company has brewed beverages that unite people to celebrate all life’s moments. From our core power brands Coors Light, Miller Lite, Coors Banquet, Molson Canadian,
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
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”), 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 Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
Sales |
$ |
3,603.3 |
|
|
$ |
3,905.6 |
|
|
$ |
10,490.7 |
|
|
$ |
10,551.5 |
|
Excise taxes |
|
(560.6 |
) |
|
|
(607.2 |
) |
|
|
(1,599.3 |
) |
|
|
(1,640.2 |
) |
Net sales |
|
3,042.7 |
|
|
|
3,298.4 |
|
|
|
8,891.4 |
|
|
|
8,911.3 |
|
Cost of goods sold |
|
(1,840.2 |
) |
|
|
(1,952.2 |
) |
|
|
(5,395.5 |
) |
|
|
(5,575.5 |
) |
Gross profit |
|
1,202.5 |
|
|
|
1,346.2 |
|
|
|
3,495.9 |
|
|
|
3,335.8 |
|
Marketing, general and administrative expenses |
|
(684.7 |
) |
|
|
(746.8 |
) |
|
|
(2,067.8 |
) |
|
|
(2,096.7 |
) |
Other operating income (expense), net |
|
(65.8 |
) |
|
|
(12.7 |
) |
|
|
(59.4 |
) |
|
|
(13.0 |
) |
Equity income (loss) |
|
(0.8 |
) |
|
|
5.5 |
|
|
|
(3.6 |
) |
|
|
12.8 |
|
Operating income (loss) |
|
451.2 |
|
|
|
592.2 |
|
|
|
1,365.1 |
|
|
|
1,238.9 |
|
Interest income (expense), net |
|
(93.1 |
) |
|
|
(48.8 |
) |
|
|
(192.7 |
) |
|
|
(162.5 |
) |
Other pension and postretirement benefits (costs), net |
|
(26.6 |
) |
|
|
2.5 |
|
|
|
(11.9 |
) |
|
|
7.7 |
|
Other non-operating income (expense), net |
|
(0.1 |
) |
|
|
(1.9 |
) |
|
|
(3.8 |
) |
|
|
2.9 |
|
Income (loss) before income taxes |
|
331.4 |
|
|
|
544.0 |
|
|
|
1,156.7 |
|
|
|
1,087.0 |
|
Income tax benefit (expense) |
|
(102.6 |
) |
|
|
(112.4 |
) |
|
|
(292.7 |
) |
|
|
(236.1 |
) |
Net income (loss) |
|
228.8 |
|
|
|
431.6 |
|
|
|
864.0 |
|
|
|
850.9 |
|
Net (income) loss attributable to noncontrolling interests |
|
(29.0 |
) |
|
|
(0.9 |
) |
|
|
(29.4 |
) |
|
|
(5.3 |
) |
Net income (loss) attributable to MCBC |
$ |
199.8 |
|
|
$ |
430.7 |
|
|
$ |
834.6 |
|
|
$ |
845.6 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net income (loss) attributable to MCBC per share |
$ |
0.96 |
|
|
$ |
1.99 |
|
|
$ |
3.98 |
|
|
$ |
3.91 |
|
Diluted net income (loss) attributable to MCBC per share |
$ |
0.96 |
|
|
$ |
1.98 |
|
|
$ |
3.96 |
|
|
$ |
3.89 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - basic |
|
207.2 |
|
|
|
216.1 |
|
|
|
209.9 |
|
|
|
216.3 |
|
Weighted average shares outstanding - diluted |
|
208.0 |
|
|
|
217.6 |
|
|
|
211.0 |
|
|
|
217.6 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends per share |
$ |
0.44 |
|
|
$ |
0.41 |
|
|
$ |
1.32 |
|
|
$ |
1.23 |
|
|
|
|
|
|
|
|
|
||||||||
BALANCE SHEETS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(In millions, except par value) (Unaudited) |
As of |
||||||
|
September 30,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
1,021.7 |
|
|
$ |
868.9 |
|
Trade receivables, net |
|
873.5 |
|
|
|
757.8 |
|
Other receivables, net |
|
144.6 |
|
|
|
121.6 |
|
Inventories, net |
|
833.3 |
|
|
|
802.3 |
|
Other current assets, net |
|
356.4 |
|
|
|
297.9 |
|
Total current assets |
|
3,229.5 |
|
|
|
2,848.5 |
|
Property, plant and equipment, net |
|
4,497.0 |
|
|
|
4,444.5 |
|
Goodwill |
|
5,317.6 |
|
|
|
5,325.3 |
|
Other intangibles, net |
|
12,408.0 |
|
|
|
12,614.6 |
|
Other assets |
|
1,183.2 |
|
|
|
1,142.2 |
|
Total assets |
$ |
26,635.3 |
|
|
$ |
26,375.1 |
|
Liabilities and equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and other current liabilities |
$ |
3,210.5 |
|
|
$ |
3,180.8 |
|
Current portion of long-term debt and short-term borrowings |
|
37.7 |
|
|
|
911.8 |
|
Total current liabilities |
|
3,248.2 |
|
|
|
4,092.6 |
|
Long-term debt |
|
6,203.0 |
|
|
|
5,312.1 |
|
Pension and postretirement benefits |
|
452.6 |
|
|
|
465.8 |
|
Deferred tax liabilities |
|
2,795.3 |
|
|
|
2,697.2 |
|
Other liabilities |
|
368.5 |
|
|
|
372.3 |
|
Total liabilities |
|
13,067.6 |
|
|
|
12,940.0 |
|
Redeemable noncontrolling interest |
|
42.2 |
|
|
|
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 and outstanding: 2.7 shares and 2.7 shares, respectively) |
|
100.8 |
|
|
|
100.8 |
|
Class B exchangeable shares, no par value (issued and outstanding: 7.2 shares and 9.4 shares, respectively) |
|
271.1 |
|
|
|
352.3 |
|
Paid-in capital |
|
7,211.0 |
|
|
|
7,108.4 |
|
Retained earnings |
|
8,040.2 |
|
|
|
7,484.3 |
|
Accumulated other comprehensive income (loss) |
|
(1,107.1 |
) |
|
|
(1,116.3 |
) |
Class B common stock held in treasury at cost (21.4 shares and 13.9 shares, respectively) |
|
(1,172.8 |
) |
|
|
(735.6 |
) |
Total Molson Coors Beverage Company stockholders' equity |
|
13,345.3 |
|
|
|
13,196.0 |
|
Noncontrolling interests |
|
180.2 |
|
|
|
211.2 |
|
Total equity |
|
13,525.5 |
|
|
|
13,407.2 |
|
Total liabilities and equity |
$ |
26,635.3 |
|
|
$ |
26,375.1 |
|
|
|
|
|
||||
CASH FLOW STATEMENTS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES |
|||||||
Condensed Consolidated Statements of Cash Flows |
|||||||
(In millions) (Unaudited) |
For the Nine Months Ended |
||||||
|
September 30,
|
|
September 30,
|
||||
Cash flows from operating activities |
|
|
|
||||
Net income (loss) including noncontrolling interests |
$ |
864.0 |
|
|
$ |
850.9 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
||||
Depreciation and amortization |
|
512.1 |
|
|
|
508.6 |
|
Amortization of debt issuance costs and discounts |
|
4.1 |
|
|
|
4.4 |
|
Interest expense related to mandatorily redeemable noncontrolling interest |
|
45.8 |
|
|
|
— |
|
Share-based compensation |
|
34.6 |
|
|
|
34.1 |
|
(Gain) loss on sale or impairment of property, plant, equipment and other assets, net |
|
37.3 |
|
|
|
8.2 |
|
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net |
|
(25.1 |
) |
|
|
84.6 |
|
Equity (income) loss |
|
3.6 |
|
|
|
(12.8 |
) |
Income tax (benefit) expense |
|
292.7 |
|
|
|
236.1 |
|
Income tax (paid) received |
|
(116.7 |
) |
|
|
(170.1 |
) |
Interest expense, excluding amortization of debt issuance costs and discounts and mandatorily redeemable noncontrolling interest |
|
169.7 |
|
|
|
174.0 |
|
Interest paid |
|
(186.9 |
) |
|
|
(201.5 |
) |
Change in current assets and liabilities and other |
|
(219.4 |
) |
|
|
88.0 |
|
Net cash provided by (used in) operating activities |
|
1,415.8 |
|
|
|
1,604.5 |
|
Cash flows from investing activities |
|
|
|
||||
Additions to property, plant and equipment |
|
(563.0 |
) |
|
|
(494.1 |
) |
Proceeds from sales of property, plant, equipment and other assets |
|
14.9 |
|
|
|
7.3 |
|
Acquisition of business, net of cash acquired |
|
— |
|
|
|
(63.9 |
) |
Other |
|
17.8 |
|
|
|
(117.8 |
) |
Net cash provided by (used in) investing activities |
|
(530.3 |
) |
|
|
(668.5 |
) |
Cash flows from financing activities |
|
|
|
||||
Dividends paid |
|
(279.4 |
) |
|
|
(266.7 |
) |
Payments for purchases of treasury stock |
|
(437.4 |
) |
|
|
(60.9 |
) |
Payments on debt and borrowings |
|
(879.0 |
) |
|
|
(402.9 |
) |
Proceeds on debt and borrowings |
|
863.7 |
|
|
|
7.0 |
|
Other |
|
(12.7 |
) |
|
|
(5.1 |
) |
Net cash provided by (used in) financing activities |
|
(744.8 |
) |
|
|
(728.6 |
) |
Effect of foreign exchange rate changes on cash and cash equivalents |
|
12.1 |
|
|
|
(5.7 |
) |
Net increase (decrease) in cash and cash equivalents |
|
152.8 |
|
|
|
201.7 |
|
Balance at beginning of year |
|
868.9 |
|
|
|
600.0 |
|
Balance at end of period |
$ |
1,021.7 |
|
|
$ |
801.7 |
|
|
|
|
|
||||
SUMMARIZED SEGMENT RESULTS (hectoliter volume and $ in millions) (Unaudited) |
||||||||||||||||||||||||||||||||||||
|
|
Q3 2024 |
|
Q3 2023 |
|
Reported % Change |
|
FX Impact |
|
Constant Currency % Change(3) |
|
YTD 2024 |
|
YTD 2023 |
|
Reported % Change |
|
FX Impact |
|
Constant Currency % Change(3) |
||||||||||||||||
Net sales(1) |
$ |
2,345.0 |
|
$ |
2,633.4 |
|
(11.0 |
) |
$ |
(7.4 |
) |
(10.7 |
) |
$ |
7,066.3 |
|
$ |
7,194.1 |
|
(1.8 |
) |
$ |
(13.5 |
) |
(1.6 |
) |
||||||||||
COGS(1)(2) |
$ |
(1,403.1 |
) |
$ |
(1,552.0 |
) |
9.6 |
|
$ |
4.3 |
|
9.3 |
|
$ |
(4,244.3 |
) |
$ |
(4,332.5 |
) |
2.0 |
|
$ |
8.3 |
|
1.8 |
|
||||||||||
MG&A |
$ |
(521.7 |
) |
$ |
(589.3 |
) |
11.5 |
|
$ |
1.5 |
|
11.2 |
|
$ |
(1,589.1 |
) |
$ |
(1,658.1 |
) |
4.2 |
|
$ |
3.1 |
|
4.0 |
|
||||||||||
Income (loss) before income taxes |
$ |
353.8 |
|
$ |
483.5 |
|
(26.8 |
) |
$ |
(1.5 |
) |
(26.5 |
) |
$ |
1,161.5 |
|
$ |
1,204.2 |
|
(3.5 |
) |
$ |
(3.9 |
) |
(3.2 |
) |
||||||||||
Underlying income (loss) before income taxes(3) |
$ |
419.8 |
|
$ |
494.1 |
|
(15.0 |
) |
$ |
(1.5 |
) |
(14.7 |
) |
$ |
1,228.3 |
|
$ |
1,215.6 |
|
1.0 |
|
$ |
(3.9 |
) |
1.4 |
|
||||||||||
Financial volume(1)(4) |
|
14.695 |
|
|
17.414 |
|
(15.6 |
) |
|
|
|
45.001 |
|
|
47.718 |
|
(5.7 |
) |
|
|
||||||||||||||||
Brand volume |
|
15.367 |
|
|
16.245 |
|
(5.4 |
) |
|
|
|
43.928 |
|
|
45.386 |
|
(3.2 |
) |
|
|
||||||||||||||||
EMEA&APAC |
|
Q3 2024 |
|
Q3 2023 |
|
Reported % Change |
|
FX Impact |
|
Constant Currency % Change(3) |
|
YTD 2024 |
|
YTD 2023 |
|
Reported % Change |
|
FX Impact |
|
Constant Currency % Change(3) |
||||||||||||||||
Net sales(1) |
$ |
704.4 |
|
$ |
670.4 |
|
5.1 |
|
$ |
8.6 |
|
3.8 |
|
$ |
1,842.4 |
|
$ |
1,729.5 |
|
6.5 |
|
$ |
15.1 |
|
5.7 |
|
||||||||||
COGS(1)(2) |
$ |
(441.9 |
) |
$ |
(440.9 |
) |
(0.2 |
) |
$ |
(5.7 |
) |
1.1 |
|
$ |
(1,195.4 |
) |
$ |
(1,178.2 |
) |
(1.5 |
) |
$ |
(10.4 |
) |
(0.6 |
) |
||||||||||
MG&A |
$ |
(163.0 |
) |
$ |
(157.5 |
) |
(3.5 |
) |
$ |
(1.9 |
) |
(2.3 |
) |
$ |
(478.7 |
) |
$ |
(438.6 |
) |
(9.1 |
) |
$ |
(3.8 |
) |
(8.3 |
) |
||||||||||
Income (loss) before income taxes |
$ |
51.6 |
|
$ |
67.5 |
|
(23.6 |
) |
$ |
1.0 |
|
(25.0 |
) |
$ |
121.8 |
|
$ |
106.3 |
|
14.6 |
|
$ |
(2.8 |
) |
17.2 |
|
||||||||||
Underlying income (loss) before income taxes(3) |
$ |
98.0 |
|
$ |
69.1 |
|
41.8 |
|
$ |
0.9 |
|
40.5 |
|
$ |
161.7 |
|
$ |
111.5 |
|
45.0 |
|
$ |
(2.6 |
) |
47.4 |
|
||||||||||
Financial volume(1)(4) |
|
5.938 |
|
|
6.120 |
|
(3.0 |
) |
|
|
|
16.039 |
|
|
16.209 |
|
(1.0 |
) |
|
|
||||||||||||||||
Brand volume |
|
5.965 |
|
|
6.077 |
|
(1.8 |
) |
|
|
|
16.018 |
|
|
15.939 |
|
0.5 |
|
|
|
||||||||||||||||
Unallocated & Eliminations |
|
Q3 2024 |
|
Q3 2023 |
|
Reported % Change |
|
FX Impact |
|
Constant Currency % Change(3) |
|
YTD 2024 |
|
YTD 2023 |
|
Reported % Change |
|
FX Impact |
|
Constant Currency % Change(3) |
||||||||||||||||
Net sales |
$ |
(6.7 |
) |
$ |
(5.4 |
) |
(24.1 |
) |
|
|
$ |
(17.3 |
) |
$ |
(12.3 |
) |
(40.7 |
) |
|
|
||||||||||||||||
COGS(2) |
$ |
4.8 |
|
$ |
40.7 |
|
88.2 |
|
|
|
$ |
44.2 |
|
$ |
(64.8 |
) |
N/M |
|
|
|
||||||||||||||||
Income (loss) before income taxes |
$ |
(74.0 |
) |
$ |
(7.0 |
) |
(957.1 |
) |
$ |
0.4 |
|
(962.9 |
) |
$ |
(126.6 |
) |
$ |
(223.5 |
) |
43.4 |
|
$ |
1.6 |
|
42.6 |
|
||||||||||
Underlying income (loss) before income taxes(3) |
$ |
(38.3 |
) |
$ |
(37.8 |
) |
(1.3 |
) |
$ |
0.2 |
|
(1.9 |
) |
$ |
(120.5 |
) |
$ |
(141.7 |
) |
15.0 |
|
$ |
1.3 |
|
14.0 |
|
||||||||||
Financial volume |
|
(0.004 |
) |
|
(0.002 |
) |
N/M |
|
|
|
|
(0.007 |
) |
|
(0.004 |
) |
N/M |
|
|
|
||||||||||||||||
Consolidated |
|
Q3 2024 |
|
Q3 2023 |
|
Reported % Change |
|
FX Impact |
|
Constant Currency % Change(3) |
|
YTD 2024 |
|
YTD 2023 |
|
Reported % Change |
|
FX Impact |
|
Constant Currency % Change(3) |
||||||||||||||||
Net sales |
$ |
3,042.7 |
|
$ |
3,298.4 |
|
(7.8 |
) |
$ |
1.2 |
|
(7.8 |
) |
$ |
8,891.4 |
|
$ |
8,911.3 |
|
(0.2 |
) |
$ |
1.6 |
|
(0.2 |
) |
||||||||||
COGS |
$ |
(1,840.2 |
) |
$ |
(1,952.2 |
) |
5.7 |
|
$ |
(1.1 |
) |
5.8 |
|
$ |
(5,395.5 |
) |
$ |
(5,575.5 |
) |
3.2 |
|
$ |
(1.7 |
) |
3.3 |
|
||||||||||
MG&A |
$ |
(684.7 |
) |
$ |
(746.8 |
) |
8.3 |
|
$ |
(0.4 |
) |
8.4 |
|
$ |
(2,067.8 |
) |
$ |
(2,096.7 |
) |
1.4 |
|
$ |
(0.7 |
) |
1.4 |
|
||||||||||
Income (loss) before income taxes |
$ |
331.4 |
|
$ |
544.0 |
|
(39.1 |
) |
$ |
(0.1 |
) |
(39.1 |
) |
$ |
1,156.7 |
|
$ |
1,087.0 |
|
6.4 |
|
$ |
(5.1 |
) |
6.9 |
|
||||||||||
Underlying income (loss) before income taxes(3) |
$ |
479.5 |
|
$ |
525.4 |
|
(8.7 |
) |
$ |
(0.4 |
) |
(8.7 |
) |
$ |
1,269.5 |
|
$ |
1,185.4 |
|
7.1 |
|
$ |
(5.2 |
) |
7.5 |
|
||||||||||
Financial volume(4) |
|
20.629 |
|
|
23.532 |
|
(12.3 |
) |
|
|
|
61.033 |
|
|
63.923 |
|
(4.5 |
) |
|
|
||||||||||||||||
Brand volume |
|
21.332 |
|
|
22.322 |
|
(4.4 |
) |
|
|
|
59.946 |
|
|
61.325 |
|
(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 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 derivative without the resulting unrealized mark-to-market volatility. |
|
|
|
|
(3) |
Represents income (loss) before taxes adjusted for non-GAAP items. See the Non-GAAP Measures and Reconciliations section for definitions and reconciliations of non-GAAP financial measures including constant currency. |
|
|
|
|
(4) |
Financial volume in hectoliters for the |
WORLDWIDE AND SEGMENT BRAND AND FINANCIAL VOLUME (in millions of hectoliters) |
||||||||
(Unaudited) |
||||||||
|
For the Three Months Ended |
|||||||
|
September 30,
|
|
September 30,
|
|
Change |
|||
Financial Volume |
14.695 |
|
|
17.414 |
|
|
(15.6 |
)% |
Contract brewing and wholesale/factored volume |
(0.804 |
) |
|
(1.503 |
) |
|
(46.5 |
)% |
Royalty volume |
0.626 |
|
|
0.692 |
|
|
(9.5 |
)% |
Sales-To-Wholesaler to Sales-To-Retail adjustment and other(1) |
0.850 |
|
|
(0.358 |
) |
|
N/M |
|
Total Americas Brand Volume |
15.367 |
|
|
16.245 |
|
|
(5.4 |
)% |
|
|
|
|
|
|
|||
EMEA&APAC |
September 30,
|
|
September 30,
|
|
Change |
|||
Financial Volume |
5.938 |
|
|
6.120 |
|
|
(3.0 |
)% |
Contract brewing and wholesale/factored volume |
(0.329 |
) |
|
(0.334 |
) |
|
(1.5 |
)% |
Royalty volume |
0.356 |
|
|
0.291 |
|
|
22.3 |
% |
Total EMEA&APAC Brand Volume |
5.965 |
|
|
6.077 |
|
|
(1.8 |
)% |
|
|
|
|
|
|
|||
Consolidated |
September 30,
|
|
September 30,
|
|
Change |
|||
Financial Volume |
20.629 |
|
|
23.532 |
|
|
(12.3 |
)% |
Contract brewing and wholesale/factored volume |
(1.133 |
) |
|
(1.837 |
) |
|
(38.3 |
)% |
Royalty volume |
0.982 |
|
|
0.983 |
|
|
(0.1 |
)% |
Sales-To-Wholesaler to Sales-To-Retail adjustment and other |
0.854 |
|
|
(0.356 |
) |
|
N/M |
|
Total Worldwide Brand Volume |
21.332 |
|
|
22.322 |
|
|
(4.4 |
)% |
|
|
|
|
|
|
|
For the Nine Months Ended |
|||||||
|
September 30,
|
|
September 30,
|
|
Change |
|||
Financial Volume |
45.001 |
|
|
47.718 |
|
|
(5.7 |
)% |
Contract brewing and wholesale/factored volume |
(2.604 |
) |
|
(4.316 |
) |
|
(39.7 |
)% |
Royalty volume |
1.795 |
|
|
1.955 |
|
|
(8.2 |
)% |
Sales-To-Wholesaler to Sales-To-Retail adjustment and other(1) |
(0.264 |
) |
|
0.029 |
|
|
N/M |
|
Total Americas Brand Volume |
43.928 |
|
|
45.386 |
|
|
(3.2 |
)% |
|
|
|
|
|
|
|||
EMEA&APAC |
September 30,
|
|
September 30,
|
|
Change |
|||
Financial Volume |
16.039 |
|
|
16.209 |
|
|
(1.0 |
)% |
Contract brewing and wholesale/factored volume |
(0.920 |
) |
|
(0.966 |
) |
|
(4.8 |
)% |
Royalty volume |
0.899 |
|
|
0.697 |
|
|
29.0 |
% |
Sales-To-Wholesaler to Sales-To-Retail adjustment and other(1) |
— |
|
|
(0.001 |
) |
|
N/M |
|
Total EMEA&APAC Brand Volume |
16.018 |
|
|
15.939 |
|
|
0.5 |
% |
|
|
|
|
|
|
|||
Consolidated |
September 30,
|
|
September 30,
|
|
Change |
|||
Financial Volume |
61.033 |
|
|
63.923 |
|
|
(4.5 |
)% |
Contract brewing and wholesale/factored volume |
(3.524 |
) |
|
(5.282 |
) |
|
(33.3 |
)% |
Royalty volume |
2.694 |
|
|
2.652 |
|
|
1.6 |
% |
Sales-To-Wholesaler to Sales-To-Retail adjustment and other |
(0.257 |
) |
|
0.032 |
|
|
N/M |
|
Total Worldwide Brand Volume |
59.946 |
|
|
61.325 |
|
|
(2.2 |
)% |
|
|
|
|
|
|
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
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 unaudited 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
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 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 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 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 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
RECONCILIATION TO NEAREST |
||||||||||||||||||||
Reconciliation by Line Item |
||||||||||||||||||||
(In millions, except per share data) (Unaudited) |
For the Three Months Ended September 30, 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 ( |
$ |
(1,840.2 |
) |
$ |
(684.7 |
) |
$ |
331.4 |
$ |
199.8 |
|
$ |
0.96 |
|
||||||
Non-GAAP adjustments (pre-tax) |
|
|
|
|
|
|||||||||||||||
Restructuring(1) |
|
— |
|
|
— |
|
|
24.1 |
|
|
24.1 |
|
|
0.12 |
|
|||||
(Gains) losses on other disposals(1) |
|
— |
|
|
— |
|
|
41.7 |
|
|
41.7 |
|
|
0.20 |
|
|||||
Unrealized mark-to-market (gains) losses |
|
1.7 |
|
|
— |
|
|
1.7 |
|
|
1.7 |
|
|
0.01 |
|
|||||
Other items(2)(3) |
|
— |
|
|
0.8 |
|
|
80.6 |
|
|
80.6 |
|
|
0.39 |
|
|||||
Tax effects of income before income tax non-GAAP adjustments and discrete tax items |
|
— |
|
|
— |
|
|
— |
|
|
(10.1 |
) |
|
(0.05 |
) |
|||||
Adjustment for redeemable noncontrolling interest recorded to the redemption value(3) |
|
— |
|
|
— |
|
|
— |
|
|
36.6 |
|
|
0.18 |
|
|||||
Underlying (Non-GAAP) |
$ |
(1,838.5 |
) |
$ |
(683.9 |
) |
$ |
479.5 |
|
$ |
374.4 |
|
$ |
1.80 |
|
|||||
|
|
|
|
|
|
(In millions, except per share data) (Unaudited) |
For the Three Months Ended September 30, 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 ( |
$ |
(1,952.2 |
) |
$ |
(746.8 |
) |
$ |
544.0 |
|
$ |
430.7 |
|
$ |
1.98 |
|
|||||
Non-GAAP adjustments (pre-tax) |
|
|
|
|
|
|||||||||||||||
Restructuring |
|
— |
|
|
— |
|
|
1.5 |
|
|
1.5 |
|
|
0.01 |
|
|||||
Intangible and tangible asset impairments, excluding goodwill |
|
— |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
— |
|
|||||
(Gains) and losses on other disposals(4) |
|
— |
|
|
— |
|
|
11.1 |
|
|
11.1 |
|
|
0.05 |
|
|||||
Unrealized mark-to-market (gains) losses |
|
(32.7 |
) |
|
— |
|
|
(30.8 |
) |
|
(30.8 |
) |
|
(0.14 |
) |
|||||
Other items |
|
— |
|
|
0.7 |
|
|
(0.5 |
) |
|
(0.5 |
) |
|
— |
|
|||||
Tax effects of income before income tax non-GAAP adjustments and discrete tax items |
|
— |
|
|
— |
|
|
— |
|
|
6.4 |
|
|
0.03 |
|
|||||
Underlying (Non-GAAP) |
$ |
(1,984.9 |
) |
$ |
(746.1 |
) |
$ |
525.4 |
|
$ |
418.5 |
|
$ |
1.92 |
|
|||||
|
|
|
|
|
|
(In millions, except per share data) (Unaudited) |
For the Nine Months Ended September 30, 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 ( |
$ |
(5,395.5 |
) |
$ |
(2,067.8 |
) |
$ |
1,156.7 |
|
$ |
834.6 |
|
$ |
3.96 |
|
|||||
Non-GAAP adjustments (pre-tax) |
|
|
|
|
|
|||||||||||||||
Restructuring(1) |
|
— |
|
|
— |
|
|
23.0 |
|
|
23.0 |
|
|
0.11 |
|
|||||
(Gains) losses on other disposals(1) |
|
— |
|
|
— |
|
|
36.4 |
|
|
36.4 |
|
|
0.17 |
|
|||||
Unrealized mark-to-market (gains) losses |
|
(27.9 |
) |
|
— |
|
|
(27.9 |
) |
|
(27.9 |
) |
|
(0.13 |
) |
|||||
Other items(2)(3) |
|
— |
|
|
1.7 |
|
|
81.3 |
|
|
81.3 |
|
|
0.39 |
|
|||||
Tax effects of income before income tax non-GAAP adjustments and discrete tax items |
|
— |
|
|
— |
|
|
— |
|
|
(2.6 |
) |
|
(0.01 |
) |
|||||
Adjustment for redeemable noncontrolling interest recorded to the redemption value(3) |
|
— |
|
|
— |
|
|
— |
|
|
36.6 |
|
|
0.17 |
|
|||||
Underlying (Non-GAAP) |
$ |
(5,423.4 |
) |
$ |
(2,066.1 |
) |
$ |
1,269.5 |
|
$ |
981.4 |
|
$ |
4.65 |
|
|||||
|
|
|
|
|
|
(In millions, except per share data) (Unaudited) |
For the Nine Months Ended September 30, 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 ( |
$ |
(5,575.5 |
) |
$ |
(2,096.7 |
) |
$ |
1,087.0 |
$ |
845.6 |
|
$ |
3.89 |
|
||||||
Non-GAAP adjustments (pre-tax) |
|
|
|
|
|
|||||||||||||||
Restructuring |
|
— |
|
|
— |
|
|
1.8 |
|
|
1.8 |
|
|
0.01 |
|
|||||
Intangible and tangible asset impairments, excluding goodwill |
|
— |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
— |
|
|||||
(Gains) and losses on other disposals(4) |
|
— |
|
|
— |
|
|
11.1 |
|
|
11.1 |
|
|
0.05 |
|
|||||
Unrealized mark-to-market (gains) losses |
|
81.8 |
|
|
— |
|
|
81.8 |
|
|
81.8 |
|
|
0.38 |
|
|||||
Other items |
|
— |
|
|
5.0 |
|
|
3.6 |
|
|
3.6 |
|
|
0.02 |
|
|||||
Tax effects of income before income tax non-GAAP adjustments and discrete tax items |
|
— |
|
|
— |
|
|
— |
|
|
(22.0 |
) |
|
(0.10 |
) |
|||||
Underlying (Non-GAAP) |
$ |
(5,493.7 |
) |
$ |
(2,091.7 |
) |
$ |
1,185.4 |
|
$ |
922.0 |
|
$ |
4.24 |
|
|||||
|
|
|
|
|
|
(1) |
During the three months ended September 30, 2024, we made the decision to wind down or sell certain of our |
|
(2) |
During the three months ended September 30, 2024, we recorded a non-cash pension settlement loss of |
|
(3) |
During the three months ended September 30, 2024, we recorded an increase in interest expense within our EMEA&APAC segment driven by a |
|
(4) |
During the three months ended September 30, 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 September 30, 2024 |
||||||||||||||
|
|
|
EMEA&APAC |
|
Unallocated |
|
Consolidated |
||||||||
Income (loss) before income taxes |
$ |
353.8 |
|
|
$ |
51.6 |
|
|
$ |
(74.0 |
) |
|
$ |
331.4 |
|
Cost of goods sold(1) |
|
— |
|
|
|
— |
|
|
|
1.7 |
|
|
|
1.7 |
|
Marketing, general & administrative |
|
0.7 |
|
|
|
0.1 |
|
|
|
— |
|
|
|
0.8 |
|
Other non-GAAP adjustment items(2) |
|
65.3 |
|
|
|
46.3 |
|
|
|
34.0 |
|
|
|
145.6 |
|
Total non-GAAP adjustment items |
$ |
66.0 |
|
|
$ |
46.4 |
|
|
$ |
35.7 |
|
|
$ |
148.1 |
|
Underlying income (loss) before income taxes |
$ |
419.8 |
|
|
$ |
98.0 |
|
|
$ |
(38.3 |
) |
|
$ |
479.5 |
|
|
|
|
|
|
|
|
|
|
|
|
(In millions) (Unaudited) |
For the Three Months Ended September 30, 2023 |
||||||||||||||
|
|
|
EMEA&APAC |
|
Unallocated |
|
Consolidated |
||||||||
Income (loss) before income taxes |
$ |
483.5 |
|
|
$ |
67.5 |
|
|
$ |
(7.0 |
) |
|
$ |
544.0 |
|
Cost of goods sold(1) |
|
— |
|
|
|
— |
|
|
|
(32.7 |
) |
|
|
(32.7 |
) |
Marketing, general & administrative |
|
0.7 |
|
|
|
— |
|
|
|
— |
|
|
|
0.7 |
|
Other non-GAAP adjustment items(2) |
|
9.9 |
|
|
|
1.6 |
|
|
|
1.9 |
|
|
|
13.4 |
|
Total non-GAAP adjustment items |
$ |
10.6 |
|
|
$ |
1.6 |
|
|
$ |
(30.8 |
) |
|
$ |
(18.6 |
) |
Underlying income (loss) before income taxes |
$ |
494.1 |
|
|
$ |
69.1 |
|
|
$ |
(37.8 |
) |
|
$ |
525.4 |
|
|
|
|
|
|
|
|
|
|
|
(In millions) (Unaudited) |
For the Nine Months Ended September 30, 2024 |
||||||||||||||
|
|
|
EMEA&APAC |
|
Unallocated |
|
Consolidated |
||||||||
Income (loss) before income taxes |
$ |
1,161.5 |
|
|
$ |
121.8 |
|
|
$ |
(126.6 |
) |
|
$ |
1,156.7 |
|
Cost of goods sold(1) |
|
— |
|
|
|
— |
|
|
|
(27.9 |
) |
|
|
(27.9 |
) |
Marketing, general & administrative |
|
1.7 |
|
|
|
— |
|
|
|
— |
|
|
|
1.7 |
|
Other non-GAAP adjustment items(2) |
|
65.1 |
|
|
|
39.9 |
|
|
|
34.0 |
|
|
|
139.0 |
|
Total non-GAAP adjustment items |
$ |
66.8 |
|
|
$ |
39.9 |
|
|
$ |
6.1 |
|
|
$ |
112.8 |
|
Underlying income (loss) before income taxes |
$ |
1,228.3 |
|
|
$ |
161.7 |
|
|
$ |
(120.5 |
) |
|
$ |
1,269.5 |
|
|
|
|
|
|
|
|
|
|
|
(In millions) (Unaudited) |
For the Nine Months Ended September 30, 2023 |
||||||||||||||
|
|
|
EMEA&APAC |
|
Unallocated |
|
Consolidated |
||||||||
Income (loss) before income taxes |
$ |
1,204.2 |
|
|
$ |
106.3 |
|
|
$ |
(223.5 |
) |
|
$ |
1,087.0 |
|
Cost of goods sold(1) |
|
— |
|
|
|
— |
|
|
|
81.8 |
|
|
|
81.8 |
|
Marketing, general & administrative |
|
1.7 |
|
|
|
3.3 |
|
|
|
— |
|
|
|
5.0 |
|
Other non-GAAP adjustment items(2) |
|
9.7 |
|
|
|
1.9 |
|
|
|
— |
|
|
|
11.6 |
|
Total non-GAAP adjustment items |
$ |
11.4 |
|
|
$ |
5.2 |
|
|
$ |
81.8 |
|
|
$ |
98.4 |
|
Underlying income (loss) before income taxes |
$ |
1,215.6 |
|
|
$ |
111.5 |
|
|
$ |
(141.7 |
) |
|
$ |
1,185.4 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Reflects changes in our mark-to-market positions on our derivative hedges recorded as 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 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 Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
|
$ |
(175.4 |
) |
|
$ |
(168.7 |
) |
|
$ |
(512.1 |
) |
|
$ |
(508.6 |
) |
Accelerated depreciation(1) |
|
9.9 |
|
|
|
— |
|
|
|
9.9 |
|
|
|
— |
|
Non-GAAP Underlying depreciation and amortization |
$ |
(165.5 |
) |
|
$ |
(168.7 |
) |
|
$ |
(502.2 |
) |
|
$ |
(508.6 |
) |
|
|
|
|
|
|
|
|
(1) |
During the three months ended September 30, 2024, we made the decision to wind down or sell certain of our |
Underlying Net Interest Income (Expense), net Reconciliation |
|||||||||||||||
(In millions) (Unaudited) |
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
September 30,
|
||||||||
|
$ |
(93.1 |
) |
|
$ |
(48.8 |
) |
|
$ |
(192.7 |
) |
|
$ |
(162.5 |
) |
Adjustment to the redemption value of mandatorily redeemable noncontrolling interest(1) |
|
45.8 |
|
|
|
— |
|
|
|
45.8 |
|
|
|
— |
|
Non-GAAP Underlying net interest income (expense), net |
$ |
(47.3 |
) |
|
$ |
(48.8 |
) |
|
$ |
(146.9 |
) |
|
$ |
(162.5 |
) |
|
|
|
|
|
|
|
|
(1) |
During the three months ended September 30, 2024, we recorded an increase in interest expense driven by a |
Effective Tax Rate Reconciliation |
|||||
(Unaudited) |
For the Three Months Ended |
||||
|
September 30,
|
|
September 30,
|
||
|
31 |
% |
|
21 |
% |
Tax effect of non-GAAP adjustment items(1) |
(7 |
%) |
|
(1 |
%) |
Non-GAAP Underlying Effective Tax Rate |
24 |
% |
|
20 |
% |
|
|
|
|
(1) |
Adjustments related to the tax effect of non-GAAP adjustment items, including a non-deductible |
Underlying Free Cash Flow |
|||||||
(In millions) (Unaudited) |
For the Nine Months Ended |
||||||
|
September 30,
|
|
September 30,
|
||||
|
$ |
1,415.8 |
|
|
$ |
1,604.5 |
|
Additions to property, plant and equipment, net(1) |
|
(563.0 |
) |
|
|
(494.1 |
) |
Cash impact of non-GAAP adjustment items(2) |
|
3.2 |
|
|
|
11.2 |
|
Non-GAAP Underlying Free Cash Flow |
$ |
856.0 |
|
|
$ |
1,121.6 |
|
|
|
|
|
(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 nine months ended September 30, 2024 and September 30, 2023. |
Net Debt and Net Debt to Underlying EBITDA Ratio |
|||||||
(In millions except net debt to underlying EBITDA ratio) (Unaudited) |
As of |
||||||
|
September 30,
|
|
September 30,
|
||||
|
$ |
37.7 |
|
|
$ |
878.8 |
|
Add/Less: |
|
|
|
||||
Long-term debt |
|
6,203.0 |
|
|
|
5,301.1 |
|
Cash and cash equivalents |
|
1,021.7 |
|
|
|
801.7 |
|
Net debt |
|
5,219.0 |
|
|
$ |
5,378.2 |
|
Q3 Underlying EBITDA |
|
692.3 |
|
|
|
742.9 |
|
Q2 Underlying EBITDA |
|
750.1 |
|
|
|
725.2 |
|
Q1 Underlying EBITDA |
|
476.2 |
|
|
|
388.4 |
|
Q4 Underlying EBITDA |
|
566.1 |
|
|
|
555.5 |
|
Non-GAAP Underlying EBITDA(1) |
$ |
2,484.7 |
|
|
$ |
2,412.0 |
|
Net debt to underlying EBITDA ratio |
|
2.10 |
|
|
|
2.23 |
|
|
|
|
|
|
|
(1) |
Represents underlying EBITDA on a trailing twelve month basis. |
Underlying EBITDA Reconciliation |
|||||||
(In millions) (Unaudited) |
For the Three Months Ended |
||||||
|
September 30,
|
|
September 30,
|
||||
|
|
228.8 |
|
|
|
431.6 |
|
Add/Less: |
|
|
|
||||
Interest expense (income), net |
|
93.1 |
|
|
|
48.8 |
|
Income tax expense (benefit) |
|
102.6 |
|
|
|
112.4 |
|
Depreciation and amortization |
|
175.4 |
|
|
|
168.7 |
|
Non-GAAP adjustments to arrive at underlying EBITDA(1) |
|
92.4 |
|
|
|
(18.6 |
) |
Non-GAAP Underlying EBITDA |
$ |
692.3 |
|
|
$ |
742.9 |
|
|
|
|
|
|
(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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107763285/en/
Investor Relations
Traci Mangini, (415) 308-0151
News Media
Rachel Dickens, (314) 452-9673
Source: Molson Coors
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