Molson Coors Beverage Company’s (TAP) shares have risen nearly 5% since it released third-quarter 2024 results on Nov. 7. The company’s top and bottom lines beat the Zacks Consensus Estimate but declined year over year.In addition, the company lowered its 2024 sales forecast to a 1% decline on a constant-currency basis from the previously mentioned low-single-digit growth, due to the ongoing macroeconomic pressures on the U.S. beer industry and lower U.S. financial volumes during this year’s peak season.Des ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ . Commission File Number: 1-14829 Molson Coors Beverage Company (Exact ...

Core Insights - Molson Coors Beverage Company reported third-quarter 2024 results with both top and bottom lines exceeding Zacks Consensus Estimates but showing year-over-year declines due to a challenging U.S. macroeconomic environment and unfavorable shipment timing [1][4] Financial Performance - Adjusted earnings per share (EPS) were $1.80, down 6.2% year over year, but above the Zacks Consensus Estimate of $1.65 [2] - Net sales decreased 7.8% year over year to $3.04 billion, surpassing the Zacks Consensus Estimate of $3.14 billion, driven by lower financial volume but partially offset by an improved price and sales mix [3][6] - Gross profit fell 10.7% year over year to $1.2 billion, with gross margin contracting 130 basis points to 39.5% [7] Segment Analysis - In the Americas segment, net sales declined 11% year over year to $2.3 billion, primarily due to lower financial volume and unfavorable currency impacts, despite a positive price and sales mix [9] - EMEA&APAC segment net sales rose 5.1% year over year to $704.4 million, supported by a favorable price and sales mix, although financial volumes dipped 3% [12][13] Cost and Expenses - Marketing, general and administrative (MG&A) expenses decreased 8.3% year over year to $684.7 million, attributed to lower incentive compensation and reduced marketing investments [7] - Underlying earnings before taxes (EBT) fell 39.1% year over year to $331.4 million, impacted by reduced financial volume and cost inflation, but partially offset by elevated pricing and lower MG&A expenses [8][11] Cash Flow and Debt - As of September 30, 2024, the company had cash and cash equivalents of $1.02 billion and total debt of $6.2 billion, resulting in a net debt of $5.22 billion [14] - Net cash provided by operating activities for the first nine months of 2024 was $1.4 billion, with underlying free cash flow of $856 million [14][15] Future Outlook - The company revised its 2024 sales forecast to a 1% decline on a constant-currency basis, down from previous low-single-digit growth expectations, while reaffirming its underlying EBT outlook [16] - Molson Coors maintained its mid-single-digit growth target for underlying EPS, expecting to reach the higher end of the target range due to an accelerated share repurchase program [17]

� COOKS Q3 FY 2024 RESULTS & OUTLOOK FORWARD LOOKING STATEMENTS & OTHER INFORMATION This presentation includes "forward-looking statements" within the meaning of the U.S. federal securities laws. Generally, the words "expects," "intend," "goals," "plans," "believes," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefits," "potential," "projects," "strategies," "implies," and variations of such words and similar expressions are intended to identify forward-looking statem ...

Financial Data and Key Metrics - Consolidated net sales revenue decreased by 7.8%, underlying pre-tax income decreased by 8.7%, and underlying earnings per share decreased by 6.2% in Q3 [8] - U.S. financial volume declined by 17.9%, and brand volume declined by 6.2% due to macroeconomic pressures [8] - Underlying free cash flow for the first nine months of the year was $856 million, with $717 million returned to shareholders through dividends and share repurchases [16] - The company adjusted its 2024 net sales revenue guidance to a decline of approximately 1%, down from previous low single-digit growth expectations [11] Business Line Performance - Core power brands in the U.S. (Coors Lite, Miller Lite, and Coors Banquet) saw a combined volume share decline of 0.5 points year-over-year, but retained significant share gains compared to 2022 [17] - Coors Banquet grew brand volume by 8% and gained industry share for the 13th consecutive quarter, making it the fastest-growing top 15 beer brand in the U.S. by volume percentage growth [17] - In Canada, Coors Lite gained segment share and remained the number one lite beer in the industry [18] - EMEA and APAC regions saw strong performance, with Ožujsko in Croatia growing volume by 6% and the successful relaunch of Caraiman in Romania, which reached over 250,000 hectoliters since March [19][20] Market Performance - The U.S. market faced challenges due to macroeconomic pressures, leading to value-seeking behavior and channel/pack shifting, particularly during the summer [10] - Canada and EMEA/APAC regions performed strongly, with Canada's top-line growth at 5.7% and EMEA/APAC also growing at 5.7% for the first nine months of 2024 [48][49] - The U.K. market saw soft consumer demand and increased promotional intensity, but Madri continued to drive volume and value growth [110][112] Company Strategy and Industry Competition - The company is focusing on premiumization, with over half of EMEA and APAC net brand revenue coming from above-premium products [21] - Investments in local production for Peroni in the U.S. aim to improve supply consistency and introduce new pack sizes, with plans to scale the brand significantly by 2025 [24][25] - The company increased its ownership stake in Zoa to 51%, aiming to leverage its network for marketing and distribution growth [27][28] - The company is divesting underperforming craft breweries to focus on scalable above-premium opportunities in the U.S. [23] Management Commentary on Operating Environment and Future Outlook - Management acknowledged the impact of macroeconomic pressures on the U.S. beer industry but expressed confidence in the long-term growth potential of the business [9][11] - The company reaffirmed its mid-single-digit growth guidance for underlying pre-tax income and narrowed its EPS guidance to the higher end of the range, supported by cost savings and share repurchases [11][12] - Management highlighted the importance of premiumization, innovation, and supply chain efficiencies in driving long-term profitable growth [32] Other Important Information - The company completed its multi-year Golden Brewery upgrade, providing more flexibility for future investments and cost savings [36] - Moody's upgraded the company's credit rating to BAA1 stable, the highest investment-grade rating in over a dozen years [37] - The company repurchased 7.5 million shares in the first nine months of 2024, utilizing 29% of its $2 billion share repurchase plan [39] Q&A Session Summary Question: Impact of shipment timing and macroeconomic pressures on U.S. financial volumes [52] - The decline in U.S. financial volumes was driven by a 17.9% drop in shipments, a 6.2% decline in brand volume, and a 2.6% impact from Pabst contract brewing [57] - The company expects a remaining headwind of 500,000 hectoliters in Q4 due to the termination of the Pabst contract [42] Question: Consumer behavior and industry trends [59] - The U.S. beer industry saw value-seeking behavior and channel/pack shifting during the summer, but trends improved in September and October [61][62] - Premiumization continues to be a key trend, particularly in the U.S. and Canada [63] Question: Shelf space retention and gains [66] - The company retained the significant shelf space gained in 2023 and achieved additional gains in the fall reset [69][70] Question: Marketing investment levels [71] - Marketing investment was down in Q3 compared to the prior year but is expected to be up for the full year 2024 [72][73] Question: Pricing and promotional environment [84] - Pricing remains in the historical range of 1% to 2%, with no significant changes in promotional activity except for deeper discounting in the above-premium tier [86][87] Question: Performance of Happy Thursday and flavor portfolio [88] - Happy Thursday has shown early positive results, particularly among Gen Z consumers, and the company plans to continue supporting the brand [92][93] Question: Plans for Blue Moon and Coors Banquet [95] - Blue Moon is showing signs of stability, with sequential improvement in total industry dollar share, while Coors Banquet continues to grow strongly [97][100] Question: COGS per hectoliter outlook [95] - The company expects cost savings from supply chain efficiencies and the removal of Pabst contract brewing to positively impact COGS [101][102] Question: Category trends and Q4 outlook [104] - The company has a good handle on Q4 drivers, including pricing and shipment trends, and remains confident in its long-term growth algorithm [105][107] Question: EMEA and APAC volume weakness [109] - Soft consumer demand in the U.K. and increased promotional intensity contributed to volume declines, but Madri continues to perform well [110][112] Question: Zoa's performance and future plans [114] - Zoa is gaining traction as a better-for-you energy drink, with strong performance on Amazon and new distribution opportunities [116][117]

Core Insights - Molson Coors Brewing reported a revenue of $3.04 billion for the quarter ended September 2024, reflecting a year-over-year decline of 7.8% [1] - The company's EPS for the same period was $1.80, down from $1.92 a year ago, with an EPS surprise of +9.09% compared to the consensus estimate of $1.65 [1] Revenue and Earnings Performance - The reported revenue of $3.04 billion was below the Zacks Consensus Estimate of $3.14 billion, resulting in a surprise of -2.98% [1] - The year-over-year decline in revenue indicates challenges in maintaining sales levels compared to the previous year [1] Key Metrics Analysis - Consolidated Brand Volume was 21.33 million, below the three-analyst average estimate of 21.93 million [3] - Brand Volumes in the Americas reached 15.37 million, slightly above the average estimate of 15.34 million [3] - Brand Volumes for EMEA & APAC were 5.97 million, below the average estimate of 6.31 million [3] - Net Sales for EMEA & APAC were reported at $704.40 million, compared to the average estimate of $716.25 million, representing a year-over-year change of +5.1% [3] - Net Sales in the Americas were $2.35 billion, below the average estimate of $2.40 billion, reflecting a year-over-year decline of 11% [3] - Unallocated & Eliminations reported -$6.70 million, worse than the average estimate of -$4.93 million, with a year-over-year change of +24.1% [3] Stock Performance - Molson Coors shares have returned +4.1% over the past month, outperforming the Zacks S&P 500 composite's +3.2% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Molson Coors Brewing (TAP) came out with quarterly earnings of $1.80 per share, beating the Zacks Consensus Estimate of $1.65 per share. This compares to earnings of $1.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this beer maker would post earnings of $1.68 per share when it actually produced earnings of $1.92, delivering a surprise of 14.29%.Over the last four quarters, the co ...

Core Viewpoint - Molson Coors Beverage Company is anticipated to report declines in both revenue and earnings for the third quarter of 2024, with revenue expected at $3.1 billion, reflecting a 4.8% decrease year-over-year, and earnings per share estimated at $1.66, indicating a 13.5% decline from the previous year [1][2]. Financial Performance Expectations - The Zacks Consensus Estimate for Molson Coors' revenues is set at $3.1 billion, which represents a 4.8% decline from the prior year's figure [1]. - The earnings consensus has decreased by one cent in the last 30 days to $1.66 per share, marking a 13.5% decline from the year-ago reported figure [2]. Earnings Prediction Model - The current Zacks Rank for Molson Coors is 3 (Hold), with an Earnings ESP of -4.25%, indicating that the model does not predict an earnings beat for this quarter [3]. Business Trends and Strategies - Molson Coors has shown strong brand resilience and success across geographic markets, contributing to sales growth, supported by its Acceleration Plan which focuses on market share gains through innovation and premiumization [4]. - The company is executing a revitalization plan aimed at sustainable top-line growth by streamlining operations and reinvesting in brands, particularly in the above-premium beer segment [5]. - The expansion into higher-margin products, such as Simply Spiked Lemonade, is expected to leverage consumer demand for premium beverages [6]. Operational Enhancements - The company has been enhancing its digital capabilities across various functions, which is expected to positively impact the top line due to pricing actions taken to address inflation [7]. - Ongoing cost-saving initiatives are anticipated to support financial health and allow for greater reinvestment in marketing and sales, contributing to margin expansion [8]. Challenges and Market Position - Molson Coors faces challenges such as cost inflation for raw materials and manufacturing, as well as an unfavorable product mix, with management expecting inflationary pressures to persist [9]. - Despite these challenges, Molson Coors is trading at a forward 12-month price-to-earnings ratio of 9.48x, which is below historical and industry averages, presenting an attractive valuation opportunity for investors [9]. Market Performance - Over the past three months, Molson Coors' shares have increased by 7.5%, contrasting with a 0.5% decline in the industry [10].

Molson Coors Beverage Company (TAP) has seen its stock price fall 18.2% in the past six months against the industry's 9% growth. This decline has raised concerns among investors about the company's prospects. To understand the situation, it's essential to examine the factors contributing to this decline and evaluate the company's long-term strategies. Image Source: Zacks Investment Research At the current price of $54.60, the stock trades below its 52-week high of $69.18 achieved on April 9, 2024. The curre ...

Molson Coors Beverage Company (TAP) appears to be in good shape, thanks to the immense strength in its brands and strong performances across its portfolio. Smooth progress of the Acceleration Plan and the premiumization of its portfolio have been aiding results. The company has been seeing strong success in EMEA&APAC, Canada and Latin America. However, in the United States, it has plans on track to drive improvement. Let us delve deeper. Details on Molson Coors' Strategies Last year, Molson Coors introduced ...