Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Q3 2024 Earnings Presentation
25 slides from Molson Coors Beverage's earnings presentation, Nov 7, 2024
Slide 1: Q3 FY 2024 Results & Outlook
Q3 FY 2024 RESULTS & OUTLOOK
Slide 2: Forward Looking Statements & Other Information
FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words "expects," "intend," "goals," "plans," "believes," "continues," "may," "anticipate," "seek," "estimate," "outlook," "tre
Slide 3: Q3 2024 Business Highlights
Q3 2024 BUSINESS HIGHLIGHTS Results impacted by U.S. core power U.S. volumes brands up ~1.9 Continued (shipment timing, summer Strong cash EMEA & APAC volume share execution of industry softness and flow generation strongly contribute points vs Q3 2022 the Acceleration wind down of a contract while
Slide 4: Acceleration Plan Designed to Support Continued Growth
ACCELERATION PLAN DESIGNED TO SUPPORT CONTINUED GROWTH DRIVES PREMIUMIZATION Grow Core Power Aggressively Scale and Expand Brand Net Revenue Premiumize in Beyond Beer Our Portfolio Support Our People, Invest in Our Capabilities Communities, and Planet STRATEGIC ORGANIZATIONAL 4
Slide 5: Consolidated Third Quarter and Year-to-Date 2024 Results
CONSOLIDATED THIRD QUARTER AND YEAR-TO-DATE 2024 RESULTS YoY % YoY % Q3 2024* Change** YTD 2024* Change** FINANCIAL VOLUME (HL) 20.629 -12.3% 61.033 -4.5% BRAND VOLUME (HL) 21.332 -4.4% 59.946 -2.2% NET SALES REVENUE $3,043 -7.8*** $8,891 -0.2%*** UNDERLYING INCOME $480 -8.7%*** $1,270 +7.5%*** BEFO
Slide 6: Consolidated Q3 2024 Revenue and Volume
CONSOLIDATED Q3 2024 REVENUE AND VOLUME NET SALES REVENUE (NSR) (CONSTANT CURRENCY) Consolidated NSR (7.8%)* Financial volume decline (12.3%), partly offset by -7.8% favorable global price and sales mix Americas NSR (10.7%)* Volume Financial volume decline (15.6%) led by U.S. (17.9%) due to unfavora
Slide 7: Consolidated Q3 2024 Brand Volume
CONSOLIDATED Q3 2024 BRAND VOLUME BRAND VOLUME % CHANGE Consolidated brand volume (4.4%) Americas brand volume down (5.4%) 3.9% U.S. brand volumes impacted by cycling strong prior- U.S. EMEA&APAC year demand for core power brands, reduced demand due to macro-economic impacts on the industry and lowe
Slide 8: Consolidated Q3 2024 Underlying COGS/HL
CONSOLIDATED Q3 2024 UNDERLYING COGS/HL UNDERLYING COGS/HL UNDERLYING COGS/HL DRIVERS (CONSTANT CURRENCY) +5.6% Q3 2023 Q3 2024 Inflation & Other* Mix Volume Deleverage (unfavorable) (unfavorable) (unfavorable) Americas +7.5% due to volume deleverage, direct materials Inflation/Other* 70-basis point
Slide 9: Americas Q3 2024 Results
AMERICAS Q3 2024 RESULTS KEY METRICS YOY % Q3 2024* CHANGE NET SALES REVENUE $2,345 -10.7%** UNDERLYING INCOME $420 -14.7%** BEFORE INCOME TAX PERFORMANCE DRIVERS FINANCIAL VOLUME 14.7 -15.6% Lower U.S. financial volumes and cost inflation, partly offset by lower MG&A, favorable net pricing, positiv
Slide 10: EMEA & APAC Q3 2024 Results
EMEA & APAC Q3 2024 RESULTS KEY METRICS YOY % Q3 2024* CHANGE NET SALES REVENUE $704 +3.8%** UNDERLYING INCOME $98 +40.5%** BEFORE INCOME TAX PERFORMANCE DRIVERS FINANCIAL VOLUME 5.9 -3.0% Favorable net pricing and sales mix (premiumization) partly offset by lower financial volumes (primarily Wester
Slide 11: Capital Allocation: Investing in Our Business
CAPITAL ALLOCATION INVESTING IN OUR BUSINESS Capital Expenditures incurred of $424 million for first nine months of 2024 included Golden brewery modernization and improving capabilities to drive efficiencies, cost savings and our sustainability initiatives 11
Slide 12: Capital Allocation: Reducing Net Debt
CAPITAL ALLOCATION REDUCING NET DEBT NET DEBT TO UNDERLYING EBITDA* Reduced our Net Debt by ~$160 million since September 30, 2023, ending the quarter at $5.2 billion Net Debt to Underlying EBITDA ratio of 2.1x at quarter end was 4.8X 4.4X consistent with long-term 3.8X 3.6X 3.5X leverage ratio targ
Slide 13: Capital Allocation: Returning Cash to Shareholders
CAPITAL ALLOCATION RETURNING CASH TO SHAREHOLDERS YOY DIVIDEND CHANGE DOLLARS INVESTED IN SHARE REPURCHASES +7.3% Paid quarterly +7.9% Repurchased ~1.2 million cash dividend of $0.44 per shares for a total of share, up ~$60 million* for the quarter 7.3% YoY Repurchased ~10 million shares or 5% of Cl
Slide 14: 2024 Guidance: Full Year Outlook
2024 GUIDANCE FULL YEAR OUTLOOK 2024E 2024E Updated Prior NET SALES REVENUE GROWTH, Down Low-Single Digits CONSTANT CURRENCY Approximately1% UNDERLYING INCOME BEFORE INCOME Mid-Single Digits Mid-Single Digits TAXES GROWTH, CONSTANT CURRENCY Mid-Single Digits UNDERLYING EARNINGS PER Higher-end of the
Slide 15: Key 2024 Guidance Assumptions and Drivers
Americas financial volume declines for 1 the year on softer-than-anticipated U.S. summer industry performance, cycling strong U.S. demand for core power brands in the prior year, and the wind-down of a contract brewing agreement (~2M HL headwind in 2024) Deliberate inventory build in 1H implies U.S.
Slide 16: Molson Coors
MOLSON COORS fina
Slide 17: Appendix
Appendix
Slide 18: Use of Non-GAAP Measures
Use of Non-GAAP Measures In addition to financial measures presented on the basis of accounting principles generally accepted in the U.S. ("U.S. GAAP"), we also use non-GAAP financial measures, as listed and defined below, for operational and financial decision making and to assess Company and segme
Slide 19: Use of Non-GAAP Measures Continued
Use of Non-GAAP Measures Continued 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, ne
Slide 20: Net Debt to Underlying EBITDA Reconciliation
Net Debt to Underlying EBITDA Reconciliation In millions (except net debt to underlying EBITDA) 12/31/2023 12/31/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 12/31/2017 12/31/2016* Current portion of long-term debt and short-term borrowings 911.8 397.1 514.9 1,020.1 928.2 1,594.5 714.8 684.8 Add
Slide 21: Reconciliation to Nearest U.S. GAAP Measures
RECONCILIATION TO NEAREST U.S. GAAP MEASURES Reconciliation by Line Item (In millions, except per share data) (Unaudited) For the Three Months Ended September 30, 2024 Marketing, Net income general and Income (loss) (loss) Diluted Cost of goods administrative before income attributable to earnings p
Slide 22: Reconciliation for Nine Months Ended September 30, 2024
(In millions, except per share data) (Unaudited) For the Nine Months Ended September 30, 2024 Marketing, Net income general and Income (loss) (loss) Diluted Cost of goods administrative before income attributable to earnings per sold expenses taxes MCBC share Reported (U.S. GAAP) $ (5,395.5) $ (2,06
Slide 23: Reconciliation to Underlying Income Before Income Taxes by Segment
Reconciliation to Underlying Income (Loss) Before Income Taxes by Segment (In millions) (Unaudited) For the Three Months Ended September 30, 2024 Americas 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,
Slide 24: Underlying Depreciation and Amortization and Net Interest Reconciliation
Underlying Depreciation and Amortization Reconciliation (In millions) (Unaudited) For the Three Months Ended For the Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 U.S. GAAP depreciation and amortization $ (175.4) $ (168.7) $ (512.1) $ (508.6) (1) Accel
Slide 25: Net Debt and Net Debt to Underlying EBITDA Ratio
Net Debt and Net Debt to Underlying EBITDA Ratio (In millions except net debt to underlying EBITDA ratio) (Unaudited) As of September 30, 2024 September 30, 2023 U.S. GAAP Current portion of long-term debt and short-term borrowings $ 37.7 $ 878.8 Add/Less: Long-term debt 6,203.0 5,301.1 Cash and cas
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