Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Q3 2023 Earnings Presentation
20 slides from Molson Coors Beverage's earnings presentation, Nov 2, 2023
Slide 1: Q3 FY 2023
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Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation release includes “forward-looking statements” w ithin the meaning of the U.S. federal securities laws. Generally, the w ords "expects," "intend," "goals," "plans," "believes," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "fut
Slide 3: Consolidated Third Quarter Fiscal Year 2023 Results
CONSOLIDATED THIRD QUARTER FISCAL YEAR 2023 RESULTS Q3 2023* % CHANGE NET SALES REVENUE $3,298 +11.0%** UNDERLYING INCOME BEFORE INCOME TAXES $525 +43.5%** UNDERLYING EARNINGS PER SHARE $1.92 +45.5% YTD UNDERLYING FREE CASH FLOW $1.1B +87.7% NET DEBT TO UNDERLYING EBITDA RATIO AS OF SEPTEMBER 30, 20
Slide 4: Raising Our 2023 Bottom-Line Guidance
RAISING OUR 2023 BOTTOM-LINE GUIDANCE FULL YEAR OUTLOOK CURRENT PRIOR High-Single Digit High-Single Digit The U.S. beer category is Net Sales Rev enue 1 healthier than expected Growth – High End Growth Underlying Income Before Income 32% to 36% 23% to 26% Taxes Brand volume is stronger than 2 expect
Slide 5: Key Fourth Quarter 2023 Outlook Drivers
KEY FOURTH QUARTER 2023 OUTLOOK DRIVERS Expect Underlying COGS/HL to be Experience a reduced level of a headwind on continued high 1 pricing benefit across the U.S. and 3 EMEA&APAC inflation and lower EMEA & APAC volume leverage vs Q3 and Q2 2023 Expect MG&A to be up by Expect U.S. brand volume to o
Slide 6: Consolidated Q3 2023 Revenue and Volume
CONSOLIDATED Q3 2023 REVENUE AND VOLUME Strong global net pricing due to fall 2022 rollover NET SALES REVENUE pricing and favorable sales mix driven by (CONSTANT CURRENCY) geographic mix led to 7.6% consolidated net sales/hl growth. +11.0% Consolidated financial volume increased 3.2%, driven by U.S.
Slide 7: Consolidated Q3 2023 Brand Volume
CONSOLIDATED Q3 2023 BRAND VOLUME Consolidated brand volume was up 1.1% BRAND VOLUME Key: Q3 22 Q3 23 Americas brand volume was up 3.6%, led by 4.5% U.S. brand volume growth driven by core brands. On a trading day +4.5% adjusted basis, U.S. brand volume growth was up 6.1%. Canada was up 0.2% on abov
Slide 8: Consolidated Q3 2023 Underlying COGS/HL
CONSOLIDATED Q3 2023 UNDERLYING COGS/HL UNDERLYING COGS/HL UNDERLYING COGS/HL DRIVERS (CONSTANT CURRENCY) +2.6% Volume Leverage (fav orable) Q322 Q2 23 Inflation & Other* Mix (unfav orable) (unfav orable) Americas was down 1.0% as cost sav ings, v olume lev erage, and Inflation/Other* (including hig
Slide 9: Consolidated Q3 2023 Underlying MG&A
CONSOLIDATED Q3 2023 UNDERLYING MG&A Supporting the strong momentum of our core brands with incremental $100 million in investment in the second half of 2023 vs the prior- year period G&A increased due to incentive compensation as a result of strong operating performance 9
Slide 10: Underlying Free Cash Flow was $1.1 billion for the first nine months
Capital Expenditures paid were $494 million for the first nine months of the year. This was directed toward our Golden brewery modernization and expanding our capabilities to drive efficiencies, Underlying Free Cash cost savings and our sustainability initiatives. Flow was $1.1 billion for the first
Slide 11: Gavin Hattersley, Chief Executive Officer
Chief Executive Officer Gavin Hattersley 11
Slide 12: Growing Third Quarter Volume and Share Across Our Regions
GROWING THIRD QUARTER VOLUME AND SHARE ACROSS OUR REGIONS United States Canada U.K. • Shipments of >1 million HL • Share growth in every • #1 brewer in the U.K. in both vs Q3 2022 region and segment value and volume share • #1 volume share gainer • Coors Light widened its #1 light growth in the indu
Slide 13: Year to Date Growing Net Sales Revenue, Volume and Share
YEAR TO DATE GROWING NET SALES REVENUE, VOLUME AND SHARE Key: U.S. Canada U.K. Net Sales Revenue Volume Volume Share Notes: Net Sales Rev enue growth rates are YTD YOY 2023 v s. 2022 on a constant currency basis. 13 Volume indicates financial v olume. Volume share represents share points per Circana
Slide 14: U.S. Shelf Resets Support Sustainability of Share Gains
U.S. SHELF RESETS SUPPORT SUSTAINABILITY OF SHARE GAINS Molson Coors Shelf Space Gains from Fall Resets has been the primary beneficiary of U.S. chain fall resets. +7% +6% Miller Lite and Coors Light gained ~6-7% more shelf space. Molson Coors anticipates additional shelf space gains Miller Lite Coo
Slide 15: Questions & Answers
Questions & Answers 15
Slide 16: Molson Coors
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Slide 17: Appendix
Appendix 17
Slide 18: Non-GAAP Information
NON-GAAP INFORMATION Underlying Income (loss) Before Income Taxes Reconciliation In millions 12/31/2022 12/31/2021 * 12/31/2020 * 12/31/2019* 12/31/2018* 12/31/2017* (U.S GAAP) Income (loss) before income taxes (62.5) 1,239.0 (643.9) 479.9 1,359.8 1,383.2 Adjustments to arriv e at underlying: Goodwi
Slide 19: Non-GAAP Information
NON-GAAP INFORMATION Net Debt to Underlying EBITDA Reconciliation In millions (except net debt to underlying EBITDA) 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 397.1 514.9 1,020.1 928.2 1,594.5 714.8 684.8
Slide 20: Non-GAAP Information
NON-GAAP INFORMATION Our guidance for any of the non-GAAP financial measures noted earlier in this presentation are also non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from our U.S. GAAP financial statements. When we provide guidance for any of
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