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Mar 31, 2024
Molson Coors Q1 2024 Earnings Report
Molson Coors reported a strong start to the year with top-line growth and increased income before income taxes, driven by both business units and supported by elevated demand in the U.S.
Key Takeaways
Molson Coors reported a 10.7% increase in net sales and a 160.5% increase in U.S. GAAP income before income taxes for the first quarter of 2024. The company reaffirmed its full-year guidance for top-line and bottom-line growth, driven by the strength of its core power brands and above-premium portfolio.
Net sales increased by 10.7% reported and 10.1% in constant currency.
U.S. GAAP income before income taxes increased 160.5% reported.
Underlying income before income taxes improved 68.8% in constant currency.
Underlying EPS of $0.95 per share increased 75.9%.
Molson Coors
Molson Coors
Molson Coors Revenue by Segment
Molson Coors Revenue by Geographic Location
Revenue by Segment
Americas Revenue
CapyFin.comEMEA&APAC Revenue
CapyFin.comRevenue by Geographic Location
Corporate Revenue
CapyFin.com Forward Guidance
The company continues to expect to achieve its key financial targets for full year 2024, including a low single-digit increase in net sales and a mid single-digit increase in underlying income before income taxes and underlying diluted earnings per share.
Positive Outlook
- U.S. brand volume is expected to outpace domestic shipment volume during the remaining three quarters of 2024.
- Capital expenditures: $750 million incurred, plus or minus 5%.
- Underlying free cash flow: $1.2 billion, plus or minus 10%.
- Underlying depreciation and amortization: $700 million, plus or minus 5%.
- Consolidated net interest expense: $210 million, plus or minus 5%.
Challenges Ahead
- The wind down of a contract brewing agreement leading up to the termination by the end of 2024 is expected to result in a reduction in Americas' financial volume by 1.6 million hectoliters for the balance of the year.
- Underlying COGS per hectoliter are expected to be higher in full year 2024 as compared to full year 2023.
- This is due to expected continued, albeit moderating inflation, mix impacts from premiumization and a lower volume leverage impact as compared to full year 2023 and the first quarter of 2024.
- MG&A expense for full year 2024 is expected to be relatively flat to full year 2023.
- Underlying effective tax rate: in the range of 23% to 25% for 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income