Molson Coors(TAP) - 2024 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2024, net sales were $11,627 million, a decrease of 0.6% from$ 11,702 million in 2023[351]. - Gross profit for 2024 was $4,533.4 million, representing an increase of 3.8% compared to$ 4,368.8 million in 2023[351]. - Operating income increased to $1,753.2 million in 2024, up 22% from$ 1,438.2 million in 2023[351]. - Net income attributable to Molson Coors Beverage Company for 2024 was $1,122.4 million, a 18.3% increase from$ 948.9 million in 2023[351]. - Basic earnings per share for 2024 was $5.38, compared to$ 4.39 in 2023, reflecting a 22.5% increase[351]. - Comprehensive income attributable to Molson Coors Beverage Company was $879.8 million for 2024, down from$ 1,038.1 million in 2023, reflecting a decrease of approximately 15%[354]. - Net income for the year ended December 31, 2024, was $1,157.7 million, an increase of 21% compared to$ 956.4 million in 2023[354]. Debt and Interest - As of December 31, 2024, the company had $4.9 billion in USD denominated fixed rate debt and$ 1.2 billion in foreign currency denominated fixed rate debt[319]. - Total interest expense for 2024 was $282.7 million, an increase from$ 234.0 million in 2023[351]. - Long-term debt increased to $6,113.9 million in 2024 from$ 5,312.1 million in 2023, reflecting an increase of 15%[356]. - The company issued EUR 800 million 3.8% senior notes on May 29, 2024, with total proceeds of $863.7 million[507]. Cash Flow and Assets - Cash and cash equivalents increased to$ 969.3 million in 2024 from $868.9 million in 2023, representing an increase of 11.7%[356]. - Net cash provided by operating activities for 2024 was$ 1,910.3 million, compared to $2,079.0 million in 2023, indicating a decrease of approximately 8.1%[360]. - Total assets as of December 31, 2024, were$ 26,064.3 million, a decrease from $26,375.1 million in 2023[356]. - Total liabilities decreased to$ 12,611.6 million in 2024 from $12,940.0 million in 2023, a reduction of approximately 2.5%[356]. Inventory and Expenses - Inventories decreased to$ 727.8 million in 2024 from $802.3 million in 2023, a decline of approximately 9.3%[356]. - Total marketing and advertising expenses, excluding depreciation and amortization, were approximately$ 1.1 billion for the years ended December 31, 2024 and 2023[393]. - The cost of goods sold includes brewing materials, packaging materials, and manufacturing expenses, impacting overall profitability[392]. Risk Management - The company manages foreign currency exposures through foreign currency forward contracts and net investment hedges[323]. - The company hedges its exposure to fluctuations in commodity prices, specifically for natural gas, barley, diesel, and aluminum[326]. - The company is exposed to volatility in interest rates, particularly related to U.S. Department of Treasury rates and Canadian government rates[317]. - The company uses derivatives for risk management purposes only, not for trading or speculative purposes[424]. Acquisitions and Investments - The company increased its investment in ZOA to 51% for a cash consideration of $53 million, recorded as a business combination[369]. - The company acquired a 75% equity interest in Blue Run for$ 77 million, including $64 million in cash, to expand its presence in the spirits category[371]. - The company obtained exclusive rights to produce, market, and sell Fever-Tree products in the U.S. effective February 1, 2025, and made an investment of approximately$ 90 million in Fever-Tree Drinks Plc[450]. - The company acquired the remaining 49.9% ownership interest in Cobra U.K. for a cash payment of $89 million, finalizing the transaction on October 21, 2024[459]. Shareholder Returns - The company paid dividends totaling$ 369.2 million in 2024, up from $354.7 million in 2023, marking an increase of 4.3%[360]. - Dividends declared to eligible shareholders totaled$ 1.76 per share for the year ended December 31, 2024, compared to $1.64 per share in 2023[406]. - The company declared a quarterly dividend of$ 0.47 per share, payable on March 14, 2025, to shareholders of Class A and Class B common stock[451]. Accounting and Reporting - The company maintained effective internal control over financial reporting as of December 31, 2024, according to the management's assessment[334]. - The company adopted ASU 2023-07, improving reportable segment disclosures, which impacted the presentation and disclosure of segment reporting but not the financial position or results of operations[452]. - The company has no new accounting pronouncements that significantly impact the consolidated financial statements other than those noted[456].