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Molson Coors Beverage Co (TAP) Q4 2024 Earnings Call Highlights: Navigating Challenges and ...

In This Article:

  • Consolidated Net Sales Revenue (Q4): Down 1.9%.

  • Underlying Pretax Income (Q4): Down 0.9%.

  • Underlying Earnings Per Share (Q4): Up 9.2%.

  • US Brand Volume (Q4): Down 3%.

  • US Financial Volume (Q4): Down 6.7%.

  • Consolidated Net Sales Revenue per Hectoliter (Q4): Growth of 4.8%.

  • Consolidated Net Sales Revenue (2024): Down 0.6%.

  • Underlying Pretax Income (2024): Up 5.6%.

  • Underlying Earnings Per Share (2024): Up 9.8%.

  • Underlying Free Cash Flow (2024): Over $1.2 billion.

  • Underlying Pretax Income Margin Expansion (2024): Nearly 80 basis points.

  • Cash Returned to Shareholders (2024): $1 billion through dividends and share repurchases.

  • Share Repurchases (2024): $643 million to repurchase 10.9 million shares.

  • Net Debt to Underlying EBITDA Ratio (2024): 2.1 times.

  • Quarterly Dividend (2025): $0.47 per share, an increase of 6.8%.

  • 2025 Guidance - Net Sales Revenue Growth: Low-single-digit on a constant currency basis.

  • 2025 Guidance - Underlying Pretax Income Growth: Mid-single-digit on a constant currency basis.

  • 2025 Guidance - Underlying Earnings Per Share Growth: High single-digit.

  • 2025 Guidance - Underlying Free Cash Flow: $1.3 billion, plus or minus 10%.

  • 2025 Guidance - Capital Expenditures: $750 million, plus or minus 5%.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Molson Coors Beverage Co (NYSE:TAP) achieved significant growth in Canada across all price segments, contributing to overall portfolio strength.

  • The company generated over $1.2 billion in underlying free cash flow, enabling substantial shareholder returns through dividends and share repurchases.

  • Molson Coors Beverage Co (NYSE:TAP) retained a significant portion of its market share gains from 2023, particularly in the US with core brands like Coors Light and Miller Lite.

  • The company successfully exited low-margin contract brewing agreements, which is expected to positively impact brewery net effectiveness and margins in 2025.

  • Molson Coors Beverage Co (NYSE:TAP) is making strategic investments in premiumization and non-alcoholic beverages, including a partnership with Fever-Tree, to drive long-term growth.

Negative Points

  • Consolidated net sales revenue declined by 1.9% in the fourth quarter, with a 3% decrease in US brand volume.

  • The exit of the Pabst contract brewing agreement resulted in a temporary headwind, impacting US financial volume by 6.7% in the quarter.

  • The EMEA and APAC regions faced challenges due to a competitive landscape in the UK and a softer industry in Central and Eastern Europe.

  • Molson Coors Beverage Co (NYSE:TAP) anticipates a 1.9 million hectoliter headwind in America's financial volume in 2025 due to the termination of contract brewing volumes.

  • The company faces uncertainty from geopolitical events and potential import tariffs, which could impact financial results.