Molson Coors Beverage Company (TAP) Q4 2024 earnings summary

Executive summary

• Achieved or exceeded all full-year 2024 guidance metrics, marking a third consecutive year of bottom-line growth, with strong cash generation enabling over $1 billion returned to shareholders via dividends and share repurchases.

• Advanced premiumization, core brand growth, and expansion beyond beer, with U.S. core brands retaining over 80% of share gains and Coors Banquet as the fastest-growing top 15 U.S. beer brand.

• Delivered strong growth in Canada and EMEA & APAC, with favorable net pricing and premiumization offsetting volume declines.

• Exited low-margin contract brewing and unprofitable businesses, focusing investments on long-term growth areas.

• Recognized a $77.9M gain from ZOA consolidation and invested in exclusive U.S. rights to Fever-Tree products.

Financial highlights

• Q4 2024 net sales revenue down 1.9% (constant currency); full-year down 0.6%, with underlying pretax income up 5.6% and underlying EPS up 9.8%.

• Underlying free cash flow for the year was $1.24B, enabling over $1B in cash returns to shareholders.

• Net debt reduced to $5.18B, with net debt to underlying EBITDA ratio at 2.1x, within long-term target.

• Dividend per share increased to $0.47, with $643M in share repurchases (6.7% of Class B shares) in 2024.

• Cost of goods sold per hectoliter up 1.8% for the year; underlying COGS per hectoliter up 3.8% in constant currency.

Outlook and guidance

• 2025 guidance: low single-digit net sales revenue growth, mid-single-digit underlying pretax income growth, high single-digit underlying EPS growth, and underlying free cash flow of $1.3B (±10%).

• Capital expenditures planned at $750M (±5%); underlying effective tax rate expected between 22% and 24%.

• Expects a 1.9 million hectoliter headwind to Americas financial volume in 2025 from contract brewing exits.

• Full-year margin expansion expected from premiumization, lower contract brewing, moderating inflation, and productivity improvements.

• Guidance does not reflect potential impacts from geopolitical events, tariffs, or global trade policy changes.