Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Q2 2024 Earnings Presentation
24 slides from Molson Coors Beverage's earnings presentation, Aug 6, 2024
Slide 1: Q2 FY 2024 Results & Outlook
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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: Driving Change: Q2 Business Highlights
DRIVING CHANGE: Q2 BUSINESS HIGHLIGHTS Execution of Maintained revenue EMEA & APAC U.S. core power Strong cash Acceleration Plan levels as favorable strongly contribute brands remain flow generation supports another U.S. shipment timing to results with up 2 full volume while investing favorable net
Slide 4: Acceleration Plan Designed to Support Continued Growth
ACCELERATION PLAN DESIGNED TO SUPPORT CONTINUED GROWTH DRIVES PREMIUMIZATION Grow Grow Core Core Power Power Aggressively Aggressively Scale Scale and and Expand Expand Brand Brand Net Net Revenue Revenue Premiumize Premiumize in in Beyond Beyond Beer Beer Our Our Portfolio Portfolio Support Our Peo
Slide 5: Consolidated Second Quarter and Year-to-Date 2024 Results
CONSOLIDATED SECOND QUARTER AND YEAR-TO-DATE 2024 RESULTS YoY % YoY % Q2 2024* Change** H1 2024* Change** FINANCIAL VOLUME (HL) 22.430 -4.1% 40.404 0.0% BRAND VOLUME (HL) 21.715 -4.9% 38.614 -1.0% NET SALES REVENUE $3,252 -0.1*** $5,849 +4.2%*** UNDERLYING INCOME $531 +5.2%*** $790 +20.4%*** BEFORE
Slide 6: Consolidated Q2 2024 Revenue and Volume
CONSOLIDATED Q2 2024 REVENUE AND VOLUME NET SALES REVENUE (NSR) (CONSTANT CURRENCY) -0.1% Consolidated NSR (0.1%)* Financial volume decline (4.1%) largely offset by favorable global price and sales mix Americas NSR (1.5%)* Financial volume decline (5.6%) led by U.S. Volume (5.9%) partly offset by fa
Slide 7: Consolidated Q2 2024 Brand Volume
CONSOLIDATED Q2 2024 BRAND VOLUME BRAND VOLUME % CHANGE Consolidated brand volume (4.9%) U.S. Canada 2.0% Americas brand volume down (7.3%) U.S. brand volumes impacted by cycling EMEA & APAC strong prior-year demand for core power -0.8% brands, lower above premium volume, and unfavorable holiday loa
Slide 8: Consolidated Q2 2024 Underlying COGS/HL
CONSOLIDATED Q2 2024 UNDERLYING COGS/HL UNDERLYING COGS/HL UNDERLYING COGS/HL DRIVERS (CONSTANT CURRENCY) +2.9% Q2 2023 Q2 2024 Inflation & Other* Mix Volume Deleverage (unfavorable) (unfavorable) (unfavorable) Americas +4.1% due to direct materials and manufacturing Inflation/Other* 160-basis point
Slide 9: Americas Q2 2024 Results
AMERICAS Q2 2024 RESULTS KEY METRICS Q2 2024* YOY % CHANGE NET SALES REVENUE $2,576 -1.5%** UNDERLYING INCOME $487 +0.2%** BEFORE INCOME TAX PERFORMANCE DRIVERS FINANCIAL VOLUME 16.4 -5.6% BRAND VOLUME 15.7 -7.3% Favorable U.S. and Canada pricing, lower MG&A (lower incentive compensation expense, of
Slide 10: EMEA & APAC Q2 2024 Results
EMEA & APAC Q2 2024 RESULTS KEY METRICS Q2 2024* YOY % CHANGE NET SALES REVENUE $683 +6.1%** UNDERLYING INCOME BEFORE INCOME TAX $81 +29.0%** PERFORMANCE DRIVERS FINANCIAL VOLUME 6.0 0.3% Favorable net pricing, sales mix BRAND VOLUME 6.0 2.0% (premiumization) and higher financial volumes (CEE partia
Slide 11: Capital Allocation: Investing in Our Business
CAPITAL ALLOCATION INVESTING IN OUR BUSINESS Capital Expenditures incurred of $300 million for first half 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 ~$250 million since June 30, 2023, ending the quarter at $5.4 billion Net Debt to Underlying EBITDA ratio of 2.1x at quarter end 4.8X 4.4X was consistent with long- 3.8X 3.6X 3.5X 3.1X 2.9X term leverage ratio
Slide 13: Capital Allocation: Returning Cash to Shareholders
CAPITAL ALLOCATION RETURNING CASH TO SHAREHOLDERS YOY DIVIDEND CHANGE DOLLARS INVESTED IN SHARE REPURCHASES +7.3% Repurchased 8.8M shares for a total cost of $521M* +7.9% Q2 2022 Q2 2023 Q2 2024 Q4 2023 Q1 2024 Q2 2024 Accelerated the pace of repurchases, Paid quarterly cash dividend of repurchasing
Slide 14: 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 15: Key 2024 Guidance Assumptions and Drivers
In the U.S., deliberately shipped Higher Underlying COGS/hI ahead of demand by ~1.1 due to volume deleverage, continued, million hl in the first half, so albeit moderating inflation, and mix impacts related to the wind down of expect U.S. volume STRs* to a contract brewing agreement outpace U.S. STW
Slide 16: Molson Coors
MOLSON COORS fnray
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 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
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 June 30, 2024 Marketing, Net income general and Income (loss) (loss) Diluted Cost of goods administrative before income attributable to earnings per so
Slide 22: Reconciliation to Underlying Income Before Income Taxes by Segment
(In millions, except per share data) (Unaudited) For the Six Months Ended June 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) $ (3,555.3) $ (1,383.1) $
Slide 23: Underlying Free Cash Flow
(In millions) (Unaudited) For the Three Months Ended June 30, 2023 Americas EMEA&APAC Unallocated Consolidated Income (loss) before income taxes $ 487.3 $ 64.2 $ (110.4) $ 441.1 Add/Less: Cost of goods sold(1) — — 62.7 62.7 Marketing, general & administrative 0.5 0.2 — 0.7 Other non-GAAP adjustment
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 June 30, 2024 June 30, 2023 U.S. GAAP Current portion of long-term debt and short-term borrowings $ 894.2 $ 423.2 Add/Less: Long-term debt 6,161.5 6,191.9 Cash and cash equival
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