Financial Performance - Net sales for the three months ended June 30, 2024, were $3,252.3 million, a slight decrease of 0.4% compared to $3,266.6 million for the same period in 2023[13] - Gross profit increased to $1,329.9 million for the three months ended June 30, 2024, up 9.1% from $1,218.9 million in the prior year[13] - Operating income rose to $599.6 million for the three months ended June 30, 2024, compared to $488.5 million in the same period last year, reflecting a 22.8% increase[13] - Net income attributable to Molson Coors Beverage Company for the three months ended June 30, 2024, was $427.0 million, up 24.7% from $342.4 million in the prior year[13] - The company reported a basic earnings per share of $2.03 for the three months ended June 30, 2024, compared to $1.58 for the same period in 2023, representing a 28.5% increase[14] - Net income for the six months ended June 30, 2024, increased to $635.2 million, up from $419.3 million in the same period last year, representing a growth of 51.5%[21] - Net income for the six months ended June 30, 2024, was $634.8 million, with a net income including noncontrolling interests of $636.2 million[27] - Income before income taxes improved by 26.5% and 80.9% for the three and six months ended June 30, 2024, respectively, due to increased net pricing and cost savings initiatives[127] Cash and Liquidity - Cash and cash equivalents increased to $1,647.3 million as of June 30, 2024, compared to $868.9 million at the end of 2023, indicating strong liquidity[19] - The balance of cash and cash equivalents at the end of the period was $1,647.3 million, compared to $960.9 million at the end of the previous year[21] - The company had a net positive cash position of $61.7 million as of June 30, 2024, compared to $59.0 million as of December 31, 2023[62] - Total cash and cash equivalents increased to $1,647.3 million as of June 30, 2024, compared to $960.9 million as of June 30, 2023[138] Assets and Liabilities - Total assets as of June 30, 2024, were $27,394.2 million, up from $26,375.1 million at the end of 2023, reflecting growth in the asset base[19] - Total current assets increased to $2,942.2 million from $1,814.3 million as of December 31, 2023, representing a significant growth[151] - Total current liabilities rose to $3,760.7 million, up from $3,048.4 million as of December 31, 2023[151] - Long-term debt increased to $6,161.5 million as of June 30, 2024, compared to $5,312.1 million at the end of 2023, indicating a rise in leverage[19] - Long-term debt increased to $6,108.0 million from $5,257.6 million as of December 31, 2023, indicating a rise in leverage[151] Expenses and Cost Management - Marketing, general and administrative expenses for the three months ended June 30, 2024, were $728.5 million, a slight decrease of 0.9% from $734.9 million in the previous year[100] - Cost of goods sold decreased by 6.1% for the three months ended June 30, 2024, attributed to lower financial volumes and a 2.1% improvement in cost of goods sold per hectoliter[110] - Marketing, general and administrative (MG&A) expenses decreased by 0.9% for the three months ended June 30, 2024, primarily due to lower incentive compensation expenses[112] Shareholder Returns - The company declared dividends totaling $90.1 million during the second quarter of 2023[23] - The company declared dividends of $0.44 per share on May 16, 2024, and $0.88 per share for the six months ended June 30, 2024[33] - The share repurchase program authorized up to $2.0 billion of Class B common stock, with $263.3 million repurchased in the three months ended June 30, 2024[34] Market Performance - The Americas segment reported net sales of $2,575.9 million for the three months ended June 30, 2024, compared to $2,621.7 million in the same period of 2023[93] - EMEA&APAC segment net sales increased to $683.3 million for the three months ended June 30, 2024, from $649.0 million in the prior year[93] - Financial volume in hectoliters decreased by 4.1% to 22.430 million hectoliters for the three months ended June 30, 2024, compared to 23.385 million hectoliters in the same period last year[100] - Americas net sales decreased by 1.7% for the three months ended June 30, 2024, driven by lower financial volumes and unfavorable foreign currency impacts[118] - EMEA&APAC net sales increased by 5.3% for the three months ended June 30, 2024, driven by favorable price and sales mix as well as higher financial volumes[124] Future Outlook - The company anticipates continued focus on cost reduction strategies and market share trends in future operations[10] - Future projections include expectations for funding capital expenditures and maintaining effective tax rates, with a commitment to environmental initiatives[10] - The company plans to acquire the remaining 49.9% ownership interest in Cobra Beer Partnership, Ltd. in the third quarter of 2024[43] Tax and Compliance - The effective tax rate for the three months ended June 30, 2024, was 24%, up from 22% in the same period of 2023, primarily due to the recognition of tax expense items[80] - The company is required to maintain a maximum leverage ratio of 4.00x, and as of June 30, 2024, it was in compliance with all debt covenants[66]
Molson Coors(TAP_A) - 2024 Q2 - Quarterly Report