Molson Coors(US:TAP)2025-11-04 13:59Financial Performance - Net sales for Q3 2025 were $2,973.5 million, a decrease of 2.3% compared to $3,042.7 million in Q3 2024[19] - Gross profit for Q3 2025 was $1,173.5 million, down from $1,202.5 million in Q3 2024, reflecting a decline of 2.4%[19] - The company reported a net loss of $2,936.9 million in Q3 2025, compared to a net income of $228.8 million in Q3 2024[20] - Net income for the nine months ended September 30, 2025, was a loss of $2,389.5 million, compared to a profit of $864.0 million for the same period in 2024[25] - The net loss for the third quarter of 2025 is reported at $2,922.0 million, compared to a net income of $865.7 million for the same period in 2023[28] - The company reported a basic loss per share of $14.79 for Q3 2025, compared to earnings of $0.96 per share in Q3 2024[19] - The company reported a net loss attributable to MCBC of $2,927.6 million for the three months ended September 30, 2025, compared to a net income of $199.8 million in the same period of 2024[116] - The company reported a net loss of $2,152.3 million for the nine months ended September 30, 2025[214] Goodwill and Impairments - Goodwill impairment of $3,645.7 million was recorded in Q3 2025, significantly impacting overall financial performance[19] - Goodwill impairment recorded was $3,645.7 million, with no impairment reported in the previous year[25] - A partial goodwill impairment charge of $3,645.7 million was recorded in the third quarter of 2025 related to the Americas reporting unit[129] - The carrying value of goodwill decreased to $1,943.5 million as of September 30, 2025, down from $5,582.3 million as of December 31, 2024, due to a partial impairment loss of $3,645.7 million recorded during the third quarter of 2025[63][64] - The Americas segment experienced an accumulated impairment loss of $5,159.0 million as of September 30, 2025, indicating ongoing risk of future impairments[63][66] - A partial impairment charge of $198.6 million was recognized for the Staropramen family of brands intangible asset in the EMEA&APAC segment during the third quarter of 2025[111] Assets and Liabilities - Total assets decreased to $22,873.4 million as of September 30, 2025, down from $26,064.3 million at the end of 2024[23] - Current liabilities increased to $5,344.8 million as of September 30, 2025, compared to $3,045.2 million at the end of 2024[23] - The company’s total equity decreased to $10,523.3 million as of September 30, 2025, down from $13,284.2 million at the end of 2024[23] - Cash and cash equivalents were $950.2 million as of September 30, 2025, slightly down from $969.3 million at the end of 2024[23] - Total current assets increased to $2,042.9 million from $1,859.8 million as of December 31, 2024[214] - Total current liabilities rose significantly to $4,969.6 million from $2,673.9 million as of December 31, 2024[214] - Total noncurrent assets decreased to $20,147.0 million from $23,958.2 million as of December 31, 2024[214] - Long-term debt as of September 30, 2025, was $3,833.8 million, down from $6,063.6 million as of December 31, 2024[214] Cash Flow and Investments - Net cash provided by operating activities decreased to $1,243.7 million from $1,415.8 million year-over-year[25] - Net cash used in investing activities was $(635.1) million, compared to $(530.3) million in the prior year[25] - The balance of cash and cash equivalents at the end of the period was $950.2 million, down from $1,021.7 million at the end of the previous year[25] - The company made a minority investment of $88.1 million in Fevertree Drinks plc, with the investment recorded at a fair value of $127.4 million as of September 30, 2025[61] - The company incurred total capital expenditures of $533.7 million for the nine months ended September 30, 2025, compared to $563.0 million in the same period of 2024, a decrease of approximately 5.2%[118] - Net cash used in investing activities increased by $104.8 million to $635.1 million for the nine months ended September 30, 2025, primarily due to investments in Fevertree Drinks plc and acquisitions[194] Expenses - Marketing, general and administrative expenses were $686.7 million in Q3 2025, compared to $684.7 million in Q3 2024, indicating a slight increase[19] - Depreciation and amortization increased to $530.2 million from $512.1 million year-over-year[25] - Other operating expenses increased by $240.9 million for the nine months ended September 30, 2025, primarily due to intangible asset impairments[157] - The interest expense for the three months ended September 30, 2025, was $62.7 million, compared to $106.4 million in the same period of 2024, indicating a significant reduction of approximately 41.0%[116] Shareholder Returns - Dividends paid increased to $285.7 million from $279.4 million year-over-year[25] - The company declared dividends totaling $93.4 million in the third quarter of 2025, reflecting a significant commitment to returning value to shareholders[28] - During the nine months ended September 30, 2025, dividends declared to eligible shareholders were $1.41 per share, with the CAD equivalent equal to CAD 1.96 per share[37] Restructuring and Strategic Initiatives - The company expects to incur restructuring charges between $35 million to $50 million as part of an Americas restructuring plan, which involves the elimination of approximately 400 salaried positions by the end of December 2025[52] - The Americas restructuring plan will eliminate approximately 400 salaried positions by the end of December 2025, with expected restructuring charges between $35 million and $50 million[126] - The company aims to expand its product portfolio beyond traditional beer offerings, including flavored beverages and spirits, to capture a wider consumer base[119] - The company obtained exclusive rights to produce, market, and sell Fever-Tree products in the U.S., aligning with its strategy to expand beyond the beer aisle[131] Market Conditions and Challenges - Other comprehensive income for the third quarter of 2025 shows a loss of $78.2 million, indicating challenges in market conditions[28] - Financial volume decreased by 6.0% to 19.385 million hectoliters for the three months ended September 30, 2025, compared to 20.629 million hectoliters in the same period of 2024[135] - The company plans to continue evaluating strategies to mitigate the impact of economic and competitive pressures on its business[123] - The company recognized a loss of $41.1 million related to the disposal of certain U.S. craft businesses during the third quarter of 2024[132] Taxation - The effective tax rate for the three months ended September 30, 2025, was 16%, a decrease from 31% in the prior year, primarily due to a $3,645.7 million partial goodwill impairment[99] - The effective tax rate for the nine months ended September 30, 2025, was 14%, down from 25% in the prior year, largely due to the impact of the goodwill impairment[160]