Financial Performance - Total sales for the year ended December 31, 2024, were $13,734.3 million, a decrease of 1.1% from $13,884.6 million in 2023[352]. - Net sales for 2024 were $11,627.0 million, compared to $11,702.1 million in 2023, reflecting a decline of 0.6%[352]. - Gross profit increased to $4,533.4 million in 2024, up from $4,368.8 million in 2023, representing a growth of 3.8%[352]. - Operating income for 2024 was $1,753.2 million, an increase of 22% from $1,438.2 million in 2023[352]. - Net income attributable to Molson Coors Beverage Company for 2024 was $1,122.4 million, compared to $948.9 million in 2023, marking a rise of 18.3%[352]. - Basic earnings per share for 2024 were $5.38, up from $4.39 in 2023, indicating a growth of 22.5%[352]. - 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]. - 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 15.3%[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]. - Interest expense increased to $282.7 million in 2024 from $234.0 million in 2023, reflecting a rise of 20.8%[352]. - Long-term debt increased to $6,113.9 million in 2024 from $5,312.1 million in 2023, an increase of 15.1%[356]. - The company issued EUR 800 million 3.8% senior notes on May 29, 2024, with a maturity of June 15, 2032, resulting in total proceeds of $863.7 million[507]. Cash Flow and Dividends - Net cash provided by operating activities was $1,910.3 million in 2024, compared to $2,079.0 million in 2023, a decrease of 8.1%[360]. - The company paid dividends totaling $369.2 million in 2024, an increase from $354.7 million in 2023[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 reported a net increase in cash and cash equivalents of $100.4 million for 2024, compared to an increase of $268.9 million in 2023[360]. Assets and Liabilities - Total assets decreased to $26,064.3 million as of December 31, 2024, from $26,375.1 million in 2023, a decline of 1.2%[356]. - Current liabilities decreased significantly to $3,045.2 million in 2024 from $4,092.6 million in 2023, a reduction of 25.6%[356]. - The company’s inventories, net, decreased to $727.8 million as of December 31, 2024, from $802.3 million as of December 31, 2023[480]. - Accounts payable and other current liabilities decreased from $3,180.8 million in 2023 to $3,013.0 million in 2024, a reduction of approximately 5.3%[502]. Risk Management - The company is exposed to volatility in interest rates, particularly U.S. Department of Treasury rates, Canadian government rates, and SOFR, impacting current and future debt offerings[317]. - 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’s financial risk management policy aims to mitigate unfavorable impacts of exchange rates on earnings and cash flows[320]. - 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]. - Cash payment of $89 million was made to acquire the remaining 49.9% ownership interest in CBPL on October 21, 2024[370]. - The company sold its 57.5% controlling interest in Truss to Tilray Brands, recognizing a loss of $11 million in the consolidated statement of operations[460]. Operational Expenses - Marketing, general, and administrative expenses decreased to $2,717.5 million in 2024 from $2,779.9 million in 2023, a reduction of 2.2%[352]. - 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 company’s cost of goods sold includes brewing materials, packaging materials, and manufacturing expenses, impacting overall profitability[392]. Goodwill and Intangible Assets - The goodwill balance related to the Americas reporting unit was $5,582 million as of December 31, 2024, with no impairment charge recorded[347]. - The company evaluates goodwill for impairment at least annually, with the last test performed on October 1, 2024[419]. - The total gross carrying amount of intangible assets decreased from $14,392.4 million in 2023 to $14,056.7 million in 2024, primarily due to the disposal of certain brands[486]. - Amortization expense for intangible assets was $206.4 million in 2024, slightly down from $207.3 million in 2023[488]. Employee and Pension Plans - The company maintains retirement plans for the majority of its employees, including defined benefit and defined contribution plans[434]. - The funded status of defined benefit pension and OPEB plans is recognized as an asset or liability on the balance sheets, with changes in status due to actuarial assumptions[435]. Regulatory and Accounting Changes - The company adopted ASU 2023-07 for segment reporting, enhancing disclosures about significant reportable segment expenses without impacting financial position[452]. - The company is assessing the impact of ASU 2024-03, which requires disaggregation of income statement expenses, effective for the year ending December 31, 2027[454].
Molson Coors(TAP_A) - 2024 Q4 - Annual Report