Molson Coors Q4 Earnings & Sales Beat Estimates, Stock Up

Core Insights - Molson Coors Beverage Company reported fourth-quarter 2024 results with both sales and earnings exceeding expectations, despite a year-over-year decline in sales and an increase in earnings [1][3][4]. Financial Performance - Adjusted earnings per share (EPS) for the quarter were $1.30, reflecting a 9.2% increase year over year, surpassing the Zacks Consensus Estimate of $1.13 [3]. - Net sales decreased by 2% year over year to $2.74 billion, but this was above the Zacks Consensus Estimate of $2.71 billion [4]. - Financial volumes dropped 6.4% year over year, primarily due to lower shipments and contract brewing volumes in the Americas [6][10]. - Gross profit increased by 1% year over year to $1.04 billion, with a gross margin improvement of 110 basis points to 38% [7]. Segment Performance - In the Americas, net sales fell 2.6% year over year to $2.17 billion, influenced by lower financial volumes and unfavorable currency impacts, although it beat the Zacks Consensus Estimate of $2.11 billion [9]. - The EMEA&APAC segment saw net sales rise 0.4% year over year to $568.7 million, benefiting from a favorable price and sales mix, despite a decline in financial volumes [13]. Cost Management - Marketing, general, and administrative (MG&A) expenses decreased by 4.9% year over year to $684.7 million, attributed to lower incentive compensation costs and reduced marketing expenses [7]. - Underlying earnings before taxes (EBT) slipped 1.4% year over year to $341 million, with cost inflation partially offset by higher pricing and lower MG&A expenses [8]. Cash Flow and Debt - As of December 31, 2024, the company had cash and cash equivalents of $969.3 million and total debt of $6.15 billion, resulting in a net debt of $5.18 billion [15]. - Net cash provided by operating activities for 2024 was $1.91 billion, with adjusted underlying free cash flow of $1.24 billion [15]. Future Outlook - For 2025, Molson Coors projects low-single-digit sales growth on a constant-currency basis and expects underlying EPS to grow in the high single digits [17][18]. - The company anticipates capital expenditures of $750 million and underlying free cash flow of $1.3 billion for 2025 [19].