Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Q1 2024 Earnings Presentation
25 slides from Molson Coors Beverage's earnings presentation, Apr 30, 2024
Slide 1: Q1 FY 2024 Results & Outlook
Q1 FY 2024 RESULTS & OUTLOOK
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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," "trends," "future benefi
Slide 3: Confident in the Strength of Our Business
CONFIDENT IN THE STRENGTH OF OUR BUSINESS • Strong momentum from 2023 continued in the first quarter with double-digit top and bottom-line growth driven by our business globally • U.S. volume share gains in the first quarter were consistent with gains in the second half of 2023 • Confident this is a
Slide 4: Double-Digit Coors Light and Coors Banquet U.S. Brand Volume Growth
STRONG MOMENTUM DRIVES DOUBLE-DIGIT COORS LIGHT AND COORS BANQUET U.S. BRAND VOLUME GROWTH Coors Light Top dollar share gainer year-to-date in the U.S. on-premise In Canada, grew nearly a full share point of the industry year-to-date Momentum is anchored by our new “Choose Chill” campaign Coors Banq
Slide 5: Miller Lite Achieves Strong Growth in the U.S. & Canada
MILLER LITE ACHIEVES STRONG GROWTH IN THE U.S. & CANADA Miller Lite Miller Lite grew U.S. brand volume by high single digits in the first quarter on top of strong prior year comps In Canada, Miller Lite sells at an above-premium price point and, year-to-date through February, it is the fastest-growi
Slide 6: Powerful Portfolio of Core Brands
POWERFUL PORTFOLIO OF CORE BRANDS Molson Trademark Carling (U.K.) is the #1 beer Ozujsko (Croatia) continued (Canada) outperformed brand in volume and is more its strong momentum, the industry and gained associated with professional reaching a 54% value share of volume share year-to-date soccer than
Slide 7: Madri Strongly Supporting Premiumization Goals
MADRI STRONGLY SUPPORTING PREMIUMIZATION GOALS Madri The #3 World Beer in the U.K. total trade; March launches in Canada and Bulgaria performing well In the U.K., the brand grew value sales of the on-trade by nearly 50%, and value sales of the off-trade by over 40% 7
Slide 8: Strong Progress in Beyond Beer with Flavor Innovations
STRONG PROGRESS IN BEYOND BEER WITH FLAVOR INNOVATIONS Simply Spiked Grew U.S. brand volume by nearly 35% in the first quarter New Limeade flavor holds the #1 new item spot for the flavored alternative segment since its launch in February Happy Thursday Launched our new non-carbonated spiked refresh
Slide 9: Delivering on the Momentum of our Brands
Delivering on the Momentum of our Brands & Confident in our 2024 Plans and on our Ability to Deliver Growth in 2024 and Beyond 9
Slide 10: Consolidated First Quarter 2024 Results
CONSOLIDATED FIRST QUARTER 2024 RESULTS Q1 2024* % CHANGE** FINANCIAL VOLUME (HL) 17.974 +5.7% BRAND VOLUME (HL) 16.899 +4.4% NET SALES REVENUE $2,596 +10.1%*** UNDERLYING INCOME BEFORE INCOME TAXES $259 +68.8%*** UNDERLYING EARNINGS PER SHARE $0.95 +75.9% UNDERLYING FREE CASH FLOW -$189 -8.6% NET D
Slide 11: Consolidated Q1 2024 Revenue and Volume
CONSOLIDATED Q1 2024 REVENUE AND VOLUME Consolidated NSR +10.1% including financial NET SALES REVENUE (NSR) volume increase of +5.7% with the balance from (CONSTANT CURRENCY) favorable global price mix (lower Americas contract brewing and EMEA & APAC premiumization). Americas NSR +10.6% including fi
Slide 12: Consolidated Q1 2024 Brand Volume
CONSOLIDATED Q1 2024 BRAND VOLUME BRAND VOLUME % GROWTH Consolidated brand volume was up 4.4%. +5.8% Americas brand volume was up 5.3%, led by 5.8% U.S. brand volume growth driven by core brands and key +3.6% flavor innovation. Canada was up 3.6% on above premium portfolio growth. Latin America was
Slide 13: Consolidated Q1 2024 Underlying COGS/hl
CONSOLIDATED Q1 2024 UNDERLYING COGS/HL UNDERLYING COGS/HL UNDERLYING COGS/HL DRIVERS (CONSTANT CURRENCY) +0.9% Volume Leverage (favorable) Inflation & Other* Mix (unfavorable) (unfavorable) Q1 2023 Q1 2024 Americas was down 0.1% as volume leverage and lower logistics costs, more Inflation/Other* (i
Slide 14: Consolidated Q1 2024 Underlying MG&A
CONSOLIDATED Q1 2024 UNDERLYING MG&A Marketing investment increased globally, including strong support of our core power brands. 14
Slide 15: Reduced Net Debt by ~$500 Million Since March 31, 2023
Reduced our Net Debt by ~$500 million since March 31, 2023, ending the quarter at $5.8 billion. Net Debt to Underlying EBITDA ratio of just under 2.3x was consistent with our longer-term leverage ratio target of under 2.5x. Capital Expenditures incurred were approximately $144 million for the quarte
Slide 16: Reaffirming 2024 Guidance
REAFFIRMING 2024 GUIDANCE FULL YEAR OUTLOOK 2024E NET SALES REVENUE GROWTH, Low-Single Digits CONSTANT CURRENCY UNDERLYING INCOME BEFORE INCOME Mid-Single Digits TAXES GROWTH, CONSTANT CURRENCY UNDERLYING EARNINGS PER Mid-Single Digits SHARE GROWTH UNDERLYING FREE CASH FLOW $1.2B +/- 10% UNDERLYING
Slide 17: Key 2024 Guidance Assumptions and Drivers
Higher Underlying U.S. volume COGS/hl STRs* to outpace due to continued, albeit moderating inflation, mix U.S. STWs* during the impacts from premiumization, balance of the year and lower volume leverage impact vs 2023 and Q1 2024 KEY 2024 1 2 3 4 GUIDANCE ASSUMPTIONS AND DRIVERS Wind down of a contr
Slide 18: Questions & Answers
Questions & Answers 18
Slide 19: Appendix
APPENDIX
Slide 20: Non-GAAP Measures and Reconciliations
NON-GAAP MEASURES AND RECONCILIATIONS Use of Non-GAAP Measures In addition to financial measures presented on the basis of accounting principles generally accepted in the U.S. (“U.S. GAAP”), we also use non-GAAP financial measures, as listed and defined below, for operational and financial decision
Slide 21: Non-GAAP Measure Definitions
• 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 au
Slide 22: 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 March 31, 2024 Marketing, Net income general and Income (loss) (loss) Diluted Cost of goods administrative before income attributable to earnings per s
Slide 23: Effective Tax Rate Reconciliation and Underlying Free Cash Flow
(In millions) (Unaudited) For the Three Months Ended March 31, 2023 Americas EMEA&APAC Unallocated Consolidated Income (loss) before income taxes $ 233.4 $ (25.4) $ (106.1) $ 101.9 Add/Less: Cost of goods sold(1) — — 51.8 51.8 Marketing, general & administrative 0.5 3.1 — 3.6 Other non-GAAP adjustme
Slide 24: 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 March 31, 2024 March 31, 2023 U.S. GAAP Current portion of long-term debt and short-term borrowings $ 905.5 $ 412.7 Add: Long-term debt 5,312.2 6,177.7 Less: Cash and cash equi
Slide 25: Molson Coors
MOLSON COORS fnray
Molson Coors Beverage Company — Q1 2024 Earnings Presentation on 6ix