Molson Coors Beverage Company (NYSE:TAP) Q3 2025 Earnings Call November 04, 2025 08:30 AM ET Company ParticipantsFilippo Falorni - DirectorRobert Moskow - Managing DirectorKevin Grundy - Managing DirectorTraci Mangini - VP of Investor RelationsDrew Levine - Equity Research VPGavin Hattersley - Former CEOKaumil Gajrawala - Managing DirectorLauren Lieberman - Managing DirectorPeter Galbo - Director and Head of U.S. Consumer Staples Equity ResearchBonnie Herzog - Managing DirectorTracey Joubert - CFORahul Goya ...

Molson Coors Beverage Company (NYSE:TAP) Q3 2025 Earnings Call November 04, 2025 08:30 AM ET Company ParticipantsFilippo Falorni - DirectorRobert Moskow - Managing DirectorKevin Grundy - Managing DirectorTraci Mangini - VP of Investor RelationsDrew Levine - Equity Research VPGavin Hattersley - Former CEOKaumil Gajrawala - Managing DirectorLauren Lieberman - Managing DirectorPeter Galbo - Director and Head of U.S. Consumer Staples Equity ResearchBonnie Herzog - Managing DirectorTracey Joubert - CFORahul Goya ...

Molson Coors Beverage Company (NYSE:TAP) Q3 2025 Earnings Call November 04, 2025 08:30 AM ET Speaker7Good morning and welcome to the Molson Coors Beverage Company third quarter fiscal year 2025 earnings conference call. With that, I'll hand it over to Traci Mangini, Vice President, Investor Relations.Speaker8Thank you, Operator, and hello everyone. Our discussion today includes forward-looking statements within the meaning of U.S. federal securities laws. For more information, please refer to the forward-lo ...

Core Insights - Coca-Cola Consolidated, Inc. reported strong financial performance for the third quarter and first nine months of fiscal 2025, with notable increases in net sales and gross profit [3][4][5]. Financial Performance - In the third quarter of 2025, net sales increased by 6.9% to $1.888 billion, while for the first nine months, net sales rose by 3.3% to $5.324 billion [5][20]. - Gross profit for the third quarter was $748.5 million, reflecting a 7.2% increase compared to the same period in 2024, with a gross margin of 39.6% [5][7]. - Income from operations for the third quarter was $246.6 million, an increase of 8.6% year-over-year, resulting in an operating margin of 13.1% [9][20]. Volume and Sales Breakdown - Total volume in the third quarter increased by 3.3%, while the first nine months saw a decline of 1.2% due to two fewer selling days compared to the previous year [4][26]. - Sparkling beverage sales in the third quarter rose by 4.7%, while still beverage sales increased by 9.9% [6][20]. Earnings and Shareholder Returns - Earnings per share for the third quarter increased by 24% to $1.64, with adjusted earnings per share rising by 10% to $2.06 [5][10]. - The company returned over $211 million to shareholders through share repurchases and dividends during 2025 [4][12]. Cost Management - Selling, delivery, and administrative expenses increased by 6.6% in the third quarter, primarily due to labor costs, but as a percentage of net sales, these expenses decreased to 26.6% [8][20]. - The company effectively managed commodity cost increases through annual price adjustments implemented earlier in the year [7][8]. Cash Flow and Investments - Cash flows from operations for the first nine months of 2025 were $722.9 million, compared to $707.9 million in the same period of 2024 [12][23]. - The company invested approximately $210 million in capital expenditures to optimize its supply chain and support future growth [12][23]. Balance Sheet Highlights - As of September 26, 2025, total assets were $5.669 billion, with stockholders' equity amounting to $1.636 billion [22]. - Current assets increased to $2.848 billion, while total liabilities rose to $4.033 billion [22].

Group 1 - The S&P 500 has increased by 14.5% year to date and over 35% from its April lows, raising questions about the sustainability of the market rally [1] - Investors seeking reliable dividend stocks may find opportunities in the Dow Jones Industrial Average, which consists of 30 industry-leading companies [1] Group 2 - Procter & Gamble (P&G) and Coca-Cola are highlighted as strong dividend stocks, with P&G having a 21.8 forward price-to-earnings (P/E) ratio compared to a 10-year median of 25.7, and Coca-Cola at 23.9 versus a median of 27.7 [6] - Both companies have maintained impressive dividend growth, with P&G raising its dividend for 69 consecutive years and Coca-Cola for 63 years, qualifying them as Dividend Kings [5] Group 3 - McDonald's is noted for its recession-resistant business model, providing affordable food options even amid inflationary pressures [7] - Chevron continues to increase its dividend payouts despite low oil prices, indicating strong financial management [8] - Visa is positioned to return significant cash to shareholders without relying on a booming economy [8]

Core Insights - The Coca-Cola Company (KO) demonstrated a resilient performance in Q3 2025, particularly in North America, despite mixed global results [1][10] - The company achieved 6% organic revenue growth and 6% comparable EPS growth, driven by disciplined pricing, marketing transformation, and innovation [4][10] North America Performance - North America was a bright spot for Coca-Cola, showing sequential volume improvement for the second consecutive quarter [1][10] - The region's performance was supported by the company's focus on affordability through smaller packs and premium segments, contributing to value share gains [2][4] Global Market Dynamics - Global performance was uneven, with Latin America and Asia Pacific facing macroeconomic and weather-related challenges, particularly in Mexico, India, and parts of ASEAN [3][10] - Despite these challenges, Coca-Cola continued to gain value share in most markets and maintained or expanded share across all geographic segments [3][4] Competitive Landscape - Coca-Cola's key rivals, PepsiCo and Monster Beverage, are experiencing distinct paths in North America, with both companies showing improvements in beverage volumes and innovation [6][7][8] - The competitive landscape is evolving as consumer spending and pricing strategies shift, raising questions about the sustainability of growth for these companies [6][7][8] Financial Metrics - Coca-Cola's shares have increased by 12.4% year-to-date, outperforming the industry growth of 7.1% [9] - The company trades at a forward price-to-earnings ratio of 22.07X, which is higher than the industry's 18.36X [12] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 3.1% for 2025 and 8.2% for 2026, with recent estimates for 2025 remaining unchanged [13][14]

Core Insights - The company reported better than expected earnings for both revenue and adjusted earnings, leading to a stock price increase of approximately 2.7% in pre-market trading [2] Financial Performance - There was a slight miss on revenue, but adjusted earnings exceeded expectations, contributing to positive market momentum [2] - Global unit volume grew by about 1% in the third quarter, significantly lower than the 4% growth seen in the same quarter of 2022 [6] - North America volume remained flat, contrasting with previous years when home consumption drove growth [5] Consumer Trends - Growth was noted in Coca-Cola Zero Sugar, which saw a 14% increase, indicating a shift in consumer preferences towards lower sugar options [7][22] - The company is focusing on higher-income consumers who are more resilient to price increases, while also adapting strategies to retain lower-income consumers [12][13] Strategic Initiatives - The company plans to continue offering diverse packaging options to cater to different price points and consumer needs [14][15] - There is an ongoing strategy to reintroduce real cane sugar in select markets, with plans for broader rollout in the coming months [17] Market Dynamics - The company is aware of external factors such as inflation, trade dynamics, and geopolitical issues affecting consumer demand [7] - The company is committed to innovation and adapting to consumer trends, including a focus on lower-calorie and lower-sugar products [21][22] Future Outlook - The company is making significant investments in its Fairlife dairy brand, with plans for the largest investment in a single production facility to meet growing demand [24][25]

Coca-Cola, one of the big movers today, topping earnings and revenue estimates. Company reiterating its fullear forecast, but did say the overall macroeconomic environment remains challenging. CEO James Quincy joins us now.James, it's it's good to have you on on an earnings day. Stocks up nicely, almost 4%. I I mean, organic revenue growth of 6% is higher than what we're seeing in the industry right now.Talk about what you're seeing from consumers around the globe. Look, we we're seeing the strong result re ...

Financial Data and Key Metrics Changes - The company has shown strong and steady results despite a dynamic operating backdrop, indicating resilience in financial performance [1] - Volume growth has been slower than expected, with a slight negative trend in Q2 for key markets like Mexico and parts of APAC [9][10] Business Line Data and Key Metrics Changes - The focus on volume is critical for long-term growth, emphasizing the importance of quality volume and positive price mix [8] - The company has seen a consistent drive for sharper execution within current operations, which is essential for growth [4][5] Market Data and Key Metrics Changes - Emerging markets present significant growth opportunities, with commercial beverages gaining market share, although still below developed market levels [14][15] - The company is actively working to expand its footprint in developing markets, which account for 80% of the global population [15][16] Company Strategy and Development Direction - The company aims to unlock future growth through investments in both developed and emerging markets, focusing on digital transformation [5][6] - There is a strong emphasis on consumer-centric marketing and innovation tailored to local markets, leveraging global brands while maintaining local intimacy [16][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by weather, geopolitical tensions, and macroeconomic impacts but remains aligned with bottlers to ensure long-term value creation [10][11] - The company is committed to a long-term strategy in India, recognizing the competitive risks from local players while focusing on foundational growth [22][24] Other Important Information - The company is leveraging digital transformation to enhance operational efficiency and consumer engagement, with a focus on tech, data, and AI [41][42] - The refranchising strategy has been successful, allowing the company to partner with bottlers who share a long-term vision for market development [38][39] Q&A Session Summary Question: What are the top priorities for the company? - The company is focused on continuing momentum and unlocking future growth through collaboration with bottlers [2][3] Question: How are volume trends currently? - Volume growth has been slower than expected, with some key markets showing slight negative trends [9][10] Question: Are pricing strategies impacting volume? - Management believes pricing strategies are not negatively impacting volume, as market share continues to expand [11][12] Question: What are the key learnings in developing the industry internationally? - The company emphasizes consumer-centric marketing and innovation tailored to local needs as key drivers for growth in emerging markets [16][18] Question: How does the company approach competition from local players in India? - The company welcomes competition but remains focused on long-term strategy and foundational growth [22][24] Question: How is the company leveraging digital transformation? - The company is focused on tech, data, and AI to enhance operational efficiency and consumer engagement [41][42]

Group 1: Market Overview - The S&P 500 and Nasdaq Composite are at all-time highs, with increases of 106.6% and 68% respectively from the start of 2023 through August 15 [1] - Investors can balance their portfolios during uncertain times by investing in dividend-paying stocks or ETFs [1] Group 2: Chevron - Chevron is highlighted as a strong dividend stock with a forward dividend yield of 4.4%, making it a suitable choice for investors concerned about a market downturn [4][8] - The company is expected to generate free cash flow of approximately $5 billion in 2025 and $6 billion in 2026 from its Tengizchevroil project [5] - Chevron's acquisition of Hess is anticipated to provide significant free cash flow and production growth, with expected annual run-rate cost synergies of $1 billion by the end of 2025 [6] - Chevron has a history of annual dividend increases for nearly four decades, demonstrating resilience during market downturns [7] Group 3: Coca-Cola - Coca-Cola is recognized as a reliable high-yield dividend stock with a current yield of 2.9% and a 63-year streak of raising its dividend [10] - The company has produced a total return of 132.5% over the last decade, although it has underperformed compared to the S&P 500 [11] - Coca-Cola's competitive advantages include an efficient supply chain and strong marketing, allowing it to diversify its beverage lineup beyond soda [12][13] - The company is focusing on growing its market share in nonalcoholic categories, which is crucial given the changing consumer preferences [13][14] Group 4: Global X Nasdaq 100 Covered Call ETF - The Global X Nasdaq 100 Covered Call ETF offers a high distribution yield of 13.8%, providing a reliable source of monthly income [16] - The ETF employs a strategy of buying stocks in the Nasdaq 100 and writing covered call options, which helps generate premiums for distribution [17] - This strategy results in lower volatility and reliable income, making it suitable for passive income-seeking investors [19]