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Dec 31, 2019
Molson Coors Q4 2019 Earnings Report
Molson Coors reported an increase in net sales and net income for Q4 2019.
Key Takeaways
Molson Coors Beverage Company reported a 2.8% increase in net sales and a 115.4% increase in net income for the fourth quarter of 2019. The company's underlying EPS increased by 21.4% to $1.02, and underlying EBITDA increased by 15.8% to $563.1 million.
Net sales increased by 2.8% due to net sales per hectoliter growth and higher financial volume.
U.S. GAAP net income attributable to MCBC increased by $87.7 million.
Underlying net income increased 21.5% driven by the same factors as U.S. GAAP net income with the exception of restructuring charges and one-time pension and postretirement costs.
Underlying EBITDA increased 15.8% on a constant currency basis, largely driven by the same factors as underlying net income.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Molson Coors expects a flat to low-single digit decrease in net sales revenue on a constant currency basis for full year 2020. Underlying EBITDA is expected to decrease high-single digit from the full year 2019 underlying EBITDA of $2.364 billion, on a constant currency basis. Underlying free cash flow is projected at $1.1 billion, plus or minus 10%.
Positive Outlook
- The company intends to maintain its investment grade rating.
- The company plans to maintain a dividend payout-ratio target in the range of 20%-25% of trailing annual underlying EBITDA.
- Cost savings are expected to be approximately $600 million for the 2020 to 2022 program which includes the cost savings associated with the revitalization program.
- Underlying depreciation and amortization: approximately $850 million.
- Consolidated net interest expense: approximately $280 million, plus or minus 5%.
Challenges Ahead
- Net Sales Revenue: flat to low-single digit decrease on a constant currency basis.
- Underlying EBITDA: high-single digit decrease from the full year 2019 underlying EBITDA of $2.364 billion, on a constant currency basis.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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