On February 13, 2025, Molson Coors Beverage Co (TAP, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year of 2024. Despite a slight decline in net sales, the company exceeded its annual earnings per share (EPS) estimates, showcasing resilience in a challenging market environment.
Molson Coors Beverage Co (TAP, Financial) is a leading global brewer with a portfolio that includes iconic brands such as Miller, Coors, Blue Moon, and Carling. The company ranks as the second-largest beer maker in the U.S., Canada, and the United Kingdom. It operates through a combination of independent distributors and in-house sales teams, with North America contributing over 80% of its total revenue.
For the full year 2024, Molson Coors reported a 0.6% decline in net sales, aligning with revised guidance. The company faced challenges in the U.S. market due to macroeconomic pressures and the termination of a contract brewing agreement, which negatively impacted financial volumes. Despite these hurdles, the company achieved a 22.4% increase in GAAP EPS to $5.35, surpassing the estimated annual EPS of $5.24.
Molson Coors' financial achievements are significant in the alcoholic beverages industry, where maintaining profitability amidst fluctuating market conditions is crucial. The company's underlying EPS grew by 9.8% to $5.96, exceeding full-year guidance. This growth was driven by strategic pricing, favorable sales mix, and cost-saving initiatives.
The company's income before income taxes improved by 20.0% to $1,503.0 million, while underlying income before income taxes increased by 5.6% in constant currency to $1,610.5 million. Net cash provided by operating activities was $1,910.3 million, with underlying free cash flow of $1,240.6 million. These metrics highlight the company's strong cash generation capabilities, which are vital for sustaining growth and shareholder returns.
Gavin Hattersley, President and CEO, stated, "2024 was another year of progress for Molson Coors. We continued to advance our strategy and achieved another year of bottom-line growth. Amid a challenging macroeconomic environment, we continued to support the health of our brands globally and premiumize our business in several markets while developing plans for premiumization in the U.S. in 2025."
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Net Sales | $11,627.0 million | $11,702.1 million | -0.6% |
| GAAP Income Before Taxes | $1,503.0 million | $1,252.5 million | +20.0% |
| Underlying Income Before Taxes | $1,610.5 million | $1,531.2 million | +5.2% |
| GAAP Net Income | $1,122.4 million | $948.9 million | +18.3% |
| GAAP EPS | $5.35 | $4.37 | +22.4% |
| Underlying EPS | $5.96 | $5.43 | +9.8% |
Molson Coors' performance in 2024 underscores its ability to navigate a challenging economic landscape while achieving strategic objectives. The company's focus on premiumization and cost management has bolstered its financial position. Looking ahead, Molson Coors has aligned its 2025 guidance with its long-term growth algorithm, anticipating continued top-line and bottom-line growth.
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Explore the complete 8-K earnings release (here) from Molson Coors Beverage Co for further details.
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