Molson Coors Q2 2024 Earnings Report
Key Takeaways
Molson Coors reported a slight decrease in net sales but a significant increase in income before income taxes. The company reaffirmed its full-year guidance for top-line and bottom-line growth, driven by pricing and mix, cost savings, and innovation.
Net sales decreased slightly by 0.4% as reported, and 0.1% in constant currency.
U.S. GAAP income before income taxes increased 26.9% as reported.
Underlying income before income taxes improved 5.2% in constant currency.
The company reaffirmed its 2024 full-year guidance for top-line and bottom-line growth.
Molson Coors
Molson Coors
Molson Coors Revenue by Segment
Forward Guidance
Molson Coors continues to expect to achieve key financial targets for full year 2024, including low single-digit increase in net sales and mid single-digit increase in underlying income before income taxes and diluted earnings per share.
Positive Outlook
- Expects low single-digit increase in net sales versus 2023 on a constant currency basis.
- Expects mid single-digit increase in underlying income before income taxes compared to 2023 on a constant currency basis.
- Expects mid single-digit increase in underlying diluted earnings per share compared to 2023.
- Underlying free cash flow: $1.2 billion, plus or minus 10%.
- Underlying effective tax rate: in the range of 23% to 25% for 2024.
Challenges Ahead
- U.S. sales to wholesalers were deliberately ahead of sales to retailers in the first half of the year and this is expected to reverse in the second half of the year.
- The wind down of a contract brewing agreement is expected to result in a reduction in Americas' financial volume by approximately 1.0 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 due to continued inflation and mix impacts.
- MG&A expense is expected to be lower than 2023 in the second half of the year.
- Capital expenditures: $750 million incurred, plus or minus 5%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income