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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.
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
United States Revenue
CapyFin.comCanada Revenue
CapyFin.comEurope Revenue
CapyFin.comInternational Revenue
CapyFin.comCorporate Revenue
CapyFin.com 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.
- Underlying free cash flow: $1.1 billion, plus or minus 10%.
- Capital spending: approximately $700 million, plus or minus 10%.
- Underlying effective tax rate in the range of 20% to 24% for 2020 and beyond, which remains subject to additional definitive guidance and finalized regulations from the U.S. government regarding the implementation of the tax reform legislation from 2017.