Molson Coors Beverage Company · NYSE:TAP
Molson Coors Beverage — Q2 2025 Earnings Presentation
29 slides from Molson Coors Beverage's earnings presentation, Aug 5, 2025
Slide 1: Q2 FY 2025 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," "confidence", "view," "continues," "may," "anticipate," "seek," "esti
Slide 3: Quarterly Business Highlights
QUARTERLY BUSINESS HIGHLIGHTS U.S. core power Macro-economic & Premiumization brand collective geopolitical impacts on progress continued Invested in the volume share holding the consumer in key in EMEA&APAC business and brands Navigating at 15.2 share in 1H markets plus and Canada while returning u
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 Second Quarter 2025 Results
CONSOLIDATED SECOND QUARTER 2025 RESULTS YoY % YoY % Q2 2025* Change** H1 2025* Change** FINANCIAL VOLUME (HL) 20.870 -7.0% 36.279 -10.2% BRAND VOLUME (HL) 20.612 -5.1% 36.159 -6.4% NET SALES REVENUE $3,201 -2.6*** $5,505 -6.1%*** UNDERLYING INCOME $532 -0.8%*** $663 -16.7%*** BEFORE INCOME TAXES UN
Slide 6: Consolidated Q2 2025 Revenue and Volume
CONSOLIDATED Q2 2025 REVENUE AND VOLUME NET SALES REVENUE (NSR) (CONSTANT CURRENCY) Consolidated NSR (2.6%)* Financial volume decline (7.0%), partly offset by favorable sales mix and global pricing -2.6% Americas NSR (2.6%)* Financial volume decline (6.6%) led by U.S. (6.1%) due to lower brand volum
Slide 7: Consolidated Q2 2025 Brand Volume
CONSOLIDATED Q2 2025 BRAND VOLUME BRAND VOLUME % CHANGE Consolidated brand volume (5.1%) U.S. Canada EMEA&APAC Americas brand volume down (4.0%) U.S. brand volume impacted by industry softness and lower share performance across our portfolio; Canada brand (1.3%) volume also declined compared to prio
Slide 8: Consolidated Q2 2025 Underlying COGS/HL
CONSOLIDATED Q2 2025 UNDERLYING COGS/HL UNDERLYING COGS/HL UNDERLYING COGS/HL DRIVERS (CONSTANT CURRENCY) +4.9% Exit of Pabst / Labatt Contract Volume Q2 2024 Q2 2025 Inflation & Other* Mix Volume Deleverage (favorable) (unfavorable) (unfavorable) Americas +3.3% due to direct materials and manufactu
Slide 9: Americas Q2 2025 Results
AMERICAS Q2 2025 RESULTS KEY METRICS Q2 2025* YOY % CHANGE NET SALES REVENUE $2,505 -2.6%** UNDERLYING INCOME $514 +5.4%** BEFORE INCOME TAX FINANCIAL VOLUME 15.3 -6.6% BRAND VOLUME 15.0 -4.0% PERFORMANCE DRIVERS Favorable mix, increased net pricing, lower MG&A expense and cost savings initiatives,
Slide 10: EMEA & APAC Q2 2025 Results
EMEA & APAC Q2 2025 RESULTS KEY METRICS Q2 2025* YOY % CHANGE NET SALES REVENUE $704 -2.3%** UNDERLYING INCOME $72 -17.9%** BEFORE INCOME TAX FINANCIAL VOLUME 5.6 -7.8% BRAND VOLUME 5.6 -7.8% PERFORMANCE DRIVERS Lower financial volume and higher UK waste management fees, partially offset by lower MG
Slide 11: Capital Allocation: Investing in Our Business
CAPITAL ALLOCATION INVESTING IN OUR BUSINESS Capital Expenditures incurred for 1H 2025 of $257 million included various efforts designed to improve capabilities, and drive efficiencies, cost savings and our sustainability initiatives 11
Slide 12: Capital Allocation: Maintaining Leverage Ratio Below 2.5x
CAPITAL ALLOCATION MAINTAINING LEVERAGE RATIO BELOW 2.5X* NET DEBT TO UNDERLYING EBITDA* Net Debt increased by ~$530 million since December 31, 2024** ending the quarter at $5.7 billion Net Debt to Underlying EBITDA ratio of 2.41x at the end of Q2 2025 remains below the re 2.50x 2.41x 2.13x long-ter
Slide 13: Capital Allocation: Returning Cash to Shareholders
CAPITAL ALLOCATION RETURNING CASH TO SHAREHOLDERS YOY DIVIDEND CHANGE DOLLARS INVESTED IN SHARE REPURCHASES +6.8% Announced a Repurchased ~4.5 million +7.3% quarterly cash shares for a total of dividend of ~$250 million* in the $0.47 per share, second quarter up 6.8% YoY, paid on June 20th Repurchas
Slide 14: 2025 Guidance
2025 GUIDANCE FULL YEAR OUTLOOK 2025E* 2025E Updated Prior NET SALES REVENUE GROWTH, 3% to 4% Decline Low-Single-Digit Decline CONSTANT CURRENCY UNDERLYING INCOME BEFORE INCOME TAXES GROWTH, 12% to15% Decline Low-Single-Digit Decline CONSTANT CURRENCY UNDERLYING DILUTED EARNINGS 7% to 10% Decline Lo
Slide 15: Key 2025 Guidance Assumptions and Drivers
KEY 2025 GUIDANCE ASSUMPTIONS AND DRIVERS* U.S. BEER INDUSTRY U.S. SHIPMENT TIMING PRICING Top-line range assumes STWs outpaced STRs by 800K HL Continue to expect U.S. category down from 4% to in 1H 2025 resulting in a ~300K annual pricing of 1% to 6% for 2H 2025; Previously YoY shipment timing 2%,
Slide 16: Key 2025 Guidance Assumptions and Drivers
KEY 2025 GUIDANCE ASSUMPTIONS AND DRIVERS* MARGIN MG&A NET INTEREST EXPENSE Mix benefits (lower contract Expected to be down for 2025 as lowered Expect $225M +/- 5% for 2025 due to brewing and increased lower cash balances incentive compensation (given adjusted 2025 premiumization) and cost (includi
Slide 17: Molson Coors
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Slide 18: Appendix
Appendix 18
Slide 19: Midwest Premium Spot Price
MIDWEST PREMIUM SPOT PRICE* 2025 Trend $0.68 $0.65 $0.55 USD / LB $0.45 $0.35 $0.25 $0.24 $0.15 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Source: The CME Group * The Midwest Premium is a component of the cost of aluminum in the U.S. 19
Slide 20: Core U.S. Brands Absolute Volume Share
CORE U.S. BRANDS ABSOLUTE VOLUME SHARE Circana L4W share of beer/beer alt, as of 06/29/25 “YE” labels are L4W as of the respective year-ends. 20
Slide 21: U.S. STWs vs. STRs
U.S. STWs vs. STRs* STRs (k HLs) 2024 2025 ~300k HL (500) bps** +150 bps** shipment timing headwind in H1 Shipment Shipment timing timing headwind tailwind 1100 750 800 600 350 200 Q1 Q2 YTD * STW denotes Sales-to-Wholesalers; STR denotes Sales-to-Retailers; Bars represent amount by which STW volume
Slide 22: 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 23: 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 and
Slide 24: Net Debt to Underlying EBITDA Reconciliation
Net Debt to Underlying EBITDA Reconciliation In millions (except net debt to underlying EBITDA) 6/30/2025 6/30/2024 6/30/2023 Current portion of long-term debt and short-term borrowings 62.3 894.2 423.2 Add: Long-term debt 6,257.0 6,161.5 6,191.9 Less: Cash and cash equivalents 613.8 1,647.3 960.9 N
Slide 25: Reconciliation to Nearest U.S. GAAP Measures by Line Item
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, 2025 Marketing, Net income Net income (loss) general and Income (loss) (loss) attributable to Cost of goods administrative before income attri
Slide 26: Reconciliation to Underlying Income Before Income Taxes by Segment
(In millions, except per share data) (Unaudited) For the Six Months Ended June 30, 2025 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) $ (3,372.1) $ (1,346.3) $
Slide 27: Underlying Depreciation and Amortization Reconciliation
(In millions) (Unaudited) For the Three Months Ended June 30, 2024 Americas EMEA&APAC Unallocated Consolidated U.S. GAAP Income (loss) before income taxes $ 487.1 $ 81.2 $ (8.4) $ 559.9 (1) Cost of goods sold — — (28.8) (28.8) Marketing, general & administrative 0.50 (0.1) — 0.4 (2) Other non-GAAP a
Slide 28: Effective Tax Rate and Free Cash Flow Reconciliation
Effective Tax Rate Reconciliation (Unaudited) For the Three Months Ended June 30, 2025 June 30, 2024 U.S. GAAP Effective Tax Rate 24% 24% Tax effect of non-GAAP adjustment items and discrete tax items(1) (1%) —% Underlying (Non-GAAP) Effective Tax Rate 23% 24% (1) Adjustments related to the tax effe
Slide 29: Underlying EBITDA Reconciliation
Underlying (Non-GAAP) EBITDA Reconciliation (In millions) (Unaudited) For the Three Months Ended June 30, 2025 June 30, 2024 U.S. GAAP Net income (loss) 424.3 425.3 Interest expense (income), net 58.5 51.2 Income tax expense (benefit) 130.6 134.6 Depreciation and amortization 173.9 167.7 Non-GAAP ad
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