Financial Performance - Net sales for the third quarter of 2024 decreased by 7.8% to $3,042.7 million compared to $3,298.4 million in the same period last year[2]. - U.S. GAAP income before income taxes fell by 39.1% to $331.4 million, while underlying income before income taxes decreased by 8.7% in constant currency to $479.5 million[2][15]. - The financial volume declined by 12.3%, primarily due to lower shipments, including a decrease in contract brewing volumes in the Americas[12]. - Net sales for the Americas segment decreased by 11.0% to $2,345.0 million for the three months ended September 30, 2024, compared to $2,633.4 million in the same period of 2023[23]. - U.S. GAAP income before income taxes declined by 26.8% to $353.8 million for the three months ended September 30, 2024, down from $483.5 million in the prior year[23]. - Underlying income before income taxes for the Americas segment decreased by 15.0% to $419.8 million for the three months ended September 30, 2024, compared to $494.1 million in 2023[23]. - Net sales for the EMEA&APAC segment increased by 5.1% to $704.4 million for the three months ended September 30, 2024, compared to $670.4 million in the same period of 2023[31]. - Underlying income before income taxes for the EMEA&APAC segment improved by 41.8% to $98.0 million for the three months ended September 30, 2024, compared to $69.1 million in 2023[31]. - Net income attributable to the company for the three months ended September 30, 2024, was $199.8 million, compared to $430.7 million in the same quarter of 2023[57]. - Basic net income per share attributable to the company for the three months ended September 30, 2024, was $0.96, down from $1.99 in the same quarter of 2023[57]. - Net income for the nine months ended September 30, 2024, was $864.0 million, compared to $850.9 million for the same period in 2023, reflecting an increase of 1.3%[59]. - Consolidated net sales for YTD 2024 were $8,891.4 million, a slight decrease of 0.2% compared to $8,911.3 million in YTD 2023[62]. Cost and Expenses - The cost of goods sold (COGS) decreased by 5.7% on a reported basis, while COGS per hectoliter increased by 7.5% due to volume deleverage and cost inflation[13]. - Marketing, general & administrative expenses decreased by 8.3% on a reported basis, primarily due to lower marketing investment and incentive compensation expenses[14]. - COGS for Q3 2024 was $1,840.2 million, a 5.7% decrease from $1,952.2 million in Q3 2023[62]. - Cost of goods sold (COGS) for YTD 2024 was $4,244.3 million, showing a slight decrease of 2.0% from $4,332.5 million in YTD 2023[60]. - The company's MG&A expenses for Q3 2024 were $163.0 million, up 3.5% from $157.5 million in Q3 2023[62]. - Interest expense increased significantly to $93.1 million, compared to $48.8 million in the previous year[96]. - Depreciation and amortization rose to $175.4 million, up from $168.7 million in the same quarter last year[96]. Shareholder Returns - The company returned $717 million in cash to shareholders in the first nine months of the year through dividends and share repurchases[7]. - Dividends per share increased to $0.44 for the three months ended September 30, 2024, compared to $0.41 in the same quarter of 2023[57]. Guidance and Projections - The company reaffirmed its underlying diluted earnings per share guidance for mid single-digit growth, narrowing to the higher end of the range[4]. - The company expects a net sales decline of approximately 1% for 2024 on a constant currency basis, a revision from previous guidance of low single-digit growth[42]. - Capital expenditures for 2024 are projected to be around $750 million, plus or minus 5%[43]. - The company expects a remaining headwind of approximately 0.5 million hectoliters to Americas financial volume due to the termination of the Pabst contract brewing agreement at year-end[45]. - Underlying COGS per hectoliter is anticipated to be higher in full year 2024 compared to full year 2023, driven by continued inflation and mix impacts from the wind down of contract brewing volume[45]. - Marketing, general and administrative expenses are projected to be lower than 2023, cycling higher marketing investments of approximately $50 million in Q4 of the previous year[46]. Debt and Cash Flow - Total debt as of September 30, 2024, was $6,240.7 million, with a net debt to underlying EBITDA ratio of 2.10x, down from 2.23x in the prior year[38]. - Net cash provided by operating activities was $1,415.8 million for the nine months ended September 30, 2024, a decrease of $188.7 million compared to the prior year[36]. - Underlying free cash flow decreased to $856.0 million for the nine months ended September 30, 2024, down $265.6 million from the previous year[37]. - The net debt as of September 30, 2024, was $5,219.0 million, a decrease from $5,378.2 million as of September 30, 2023, reflecting a reduction of 2.9%[95]. - The net debt to underlying EBITDA ratio improved to 2.10 as of September 30, 2024, compared to 2.23 as of September 30, 2023, indicating better leverage management[95]. Non-GAAP Measures - Non-GAAP adjustments included restructuring costs of $24.1 million and gains on other disposals amounting to $41.7 million for the three months ended September 30, 2024[84]. - The underlying effective tax rate was adjusted to exclude the tax impact of pre-tax non-GAAP adjustment items, providing a clearer view of the company's tax obligations[78]. - The company utilized constant currency measures to evaluate performance, excluding the impact of foreign currency movements, which is crucial for assessing underlying business performance[82]. - Non-GAAP Underlying EBITDA was $692.3 million, a decline of 6.8% from $742.9 million in the prior year[96]. - Non-GAAP underlying free cash flow for the nine months ended September 30, 2024, was $856.0 million, down from $1,121.6 million in the same period of 2023, representing a decrease of 23.7%[93].
Molson Coors(TAP_A) - 2024 Q3 - Quarterly Results