Molson Coors(TAP)2025-05-08 13:21Financial Performance - Net sales for Q1 2025 were $2,304.1 million, a decrease of 11.3% compared to $2,596.4 million in Q1 2024[19] - Gross profit for Q1 2025 was $850.9 million, down 11.7% from $963.5 million in Q1 2024[19] - Net income attributable to Molson Coors Beverage Company for Q1 2025 was $121.0 million, a decline of 41.8% from $207.8 million in Q1 2024[19] - Basic earnings per share for Q1 2025 were $0.60, compared to $0.98 in Q1 2024, reflecting a 38.8% decrease[19] - The company reported an income (loss) before income taxes of $156.3 million for the three months ended March 31, 2025, compared to $265.4 million for the same period in 2024[102] - Operating income decreased by 40.7% to $186.3 million for the three months ended March 31, 2025, compared to $314.3 million in the prior year[114] - The company reported a loss before income taxes of $44.2 million for the three months ended March 31, 2025, an increase of 74.5% compared to the prior year[142] - Income before income taxes declined by 34.7% for the three months ended March 31, 2025, primarily due to lower financial volumes and cost inflation related to materials and manufacturing expenses[136] Cash Flow and Liquidity - Cash and cash equivalents decreased to $412.7 million from $969.3 million at the end of 2024, a decline of 57.5%[23] - Net cash used in operating activities for Q1 2025 was $(90.7) million, compared to $25.4 million in Q1 2024[25] - The company reported a net positive cash position of $31.1 million from bank overdrafts and cash as of March 31, 2025, down from $46.0 million as of December 31, 2024[73] - Net cash used in investing activities increased to $341.3 million for the three months ended March 31, 2025, primarily due to investments in Fevertree Drinks plc and the acquisition of Fevertree USA, Inc.[151] Assets and Liabilities - Total assets as of March 31, 2025, were $25,930.5 million, slightly down from $26,064.3 million at the end of 2024[23] - Total liabilities decreased to $12,478.7 million as of March 31, 2025, from $12,611.6 million at the end of 2024[23] - As of March 31, 2025, total long-term debt was $6,154.6 million, an increase from $6,113.9 million as of December 31, 2024, reflecting a growth of approximately 0.67%[72] - Total current assets decreased to $1,601.7 million from $1,859.8 million as of December 31, 2024[174] - The total noncurrent assets increased slightly to $24,007.5 million from $23,958.2 million as of December 31, 2024[174] Shareholder Returns - The company paid dividends of $99.2 million in Q1 2025, slightly up from $96.8 million in Q1 2024[25] - The company declared dividends of $0.47 per share on February 12, 2025, compared to $0.44 per share declared during the same period in 2024[38] - The company repurchased a total of 1,036,630 shares of Class B common stock during the three months ended March 31, 2025, at an average price of $57.47 per share[191] - The total approximate dollar value of shares that may yet be purchased under the repurchase program is $1,151,367,074[191] - The Board approved a share repurchase program of up to $2.0 billion for Class B common stock, with an expected term of five years[191] Investments and Acquisitions - An investment of $88.1 million was made in Fevertree Drinks plc, aligning with the company's strategy to expand beyond the beer aisle[48] - The investment in Fevertree Drinks plc was recorded at a fair value of $113.8 million as of March 31, 2025, after an initial investment of $88.1 million[57] - The company obtained exclusive rights to produce, market, and sell Fever-Tree products in the U.S. effective February 1, 2025, aligning with its strategy to expand beyond the beer aisle[110] Market and Operational Insights - The company operates in two segments: the Americas and EMEA&APAC, with operations in various countries including the U.S., Canada, and several European and Asian markets[32] - Financial volume decreased by 14.3% to 15.409 million hectoliters for the three months ended March 31, 2025, compared to 17.974 million hectoliters in the prior year[114] - The Americas segment's net sales for the three months ended March 31, 2025, were $1,881.8 million, down from $2,145.4 million for the same period in 2024[102] - The Americas segment net sales decreased by 12.3% to $1,881.8 million for the three months ended March 31, 2025, compared to $2,145.4 million in the prior year[132] Compliance and Legal Matters - The company was in compliance with all debt covenants and financial ratios as of March 31, 2025[79] - The company has an accrued contingent liability of $9.8 million related to litigation and environmental issues, down from $71.1 million as of December 31, 2024[89] - The company paid $60.6 million on January 29, 2025, to resolve a trademark infringement lawsuit filed by Stone Brewing Company[90] Miscellaneous - The company recognized share-based compensation expense of $11.9 million for the three months ended March 31, 2025, compared to $12.8 million for the same period in 2024[43] - The effective tax rate for the three months ended March 31, 2025, remained flat at 21% compared to the prior year[87] - The company incurred $180.3 million in depreciation and amortization for the three months ended March 31, 2025[103]