Core Insights - Molson Coors Beverage Company reported third-quarter 2024 results with both top and bottom lines exceeding Zacks Consensus Estimates but showing year-over-year declines due to a challenging U.S. macroeconomic environment and unfavorable shipment timing [1][4] Financial Performance - Adjusted earnings per share (EPS) were $1.80, down 6.2% year over year, but above the Zacks Consensus Estimate of $1.65 [2] - Net sales decreased 7.8% year over year to $3.04 billion, surpassing the Zacks Consensus Estimate of $3.14 billion, driven by lower financial volume but partially offset by an improved price and sales mix [3][6] - Gross profit fell 10.7% year over year to $1.2 billion, with gross margin contracting 130 basis points to 39.5% [7] Segment Analysis - In the Americas segment, net sales declined 11% year over year to $2.3 billion, primarily due to lower financial volume and unfavorable currency impacts, despite a positive price and sales mix [9] - EMEA&APAC segment net sales rose 5.1% year over year to $704.4 million, supported by a favorable price and sales mix, although financial volumes dipped 3% [12][13] Cost and Expenses - Marketing, general and administrative (MG&A) expenses decreased 8.3% year over year to $684.7 million, attributed to lower incentive compensation and reduced marketing investments [7] - Underlying earnings before taxes (EBT) fell 39.1% year over year to $331.4 million, impacted by reduced financial volume and cost inflation, but partially offset by elevated pricing and lower MG&A expenses [8][11] Cash Flow and Debt - As of September 30, 2024, the company had cash and cash equivalents of $1.02 billion and total debt of $6.2 billion, resulting in a net debt of $5.22 billion [14] - Net cash provided by operating activities for the first nine months of 2024 was $1.4 billion, with underlying free cash flow of $856 million [14][15] Future Outlook - The company revised its 2024 sales forecast to a 1% decline on a constant-currency basis, down from previous low-single-digit growth expectations, while reaffirming its underlying EBT outlook [16] - Molson Coors maintained its mid-single-digit growth target for underlying EPS, expecting to reach the higher end of the target range due to an accelerated share repurchase program [17]
Molson Coors Q3 Earnings & Sales Beat, Stock Dips on Soft View