Molson Coors Beverage Company Q4 FY2024 earnings call

• 2024 was year of progress, supported brand health globally, retained share gains, premiumized, terminated low-margin contracts. • Delivered over $1.2B underlying free cash flow, returned $1B to shareholders. • Core power brands healthy, Canada performed strongly, EMEA and APAC premiumized. • Focused on scalable opportunities in above premium portfolio, strategic partnerships like Fever-Tree. • Returned cash to shareholders, healthy balance sheet with net debt to underlying EBITDA ratio 2.1 times.

In Americas: Canada strong, U.S. faced Pabst contract brewing exit headwind; U.S. brand volume down 3%, shipments trailed brand volumes. In EMEA and APAC: Volumes impacted by competitive landscape and softer industry, but net sales revenue per hectoliter grew 7.8% due to premiumization. For 2024: Consolidated net sales revenue down 0.6%, underlying pretax income up 5.6%, underlying earnings per share up 9.8%. Core power brands healthy, premiumization progress in various regions.

• 2025 guidance in line with long-term growth algorithm: Low single digit net sales revenue growth, mid-single digit underlying pretax income growth, high single digit underlying earnings per share growth, underlying free cash flow $1.3B ±10%, underlying depreciation and amortization $675M ±5%, net interest expense $215M ±5%, underlying effective tax rate 22%-24%, capital expenditures $750M ±5%. • Drivers: Anticipated net price increases, mix from premiumization, cycling revenue from divested breweries and contract brewing termination, one-time fees from Fever-Tree partnership. • Full year margin expansion from lower contract brewing, premiumization, moderating inflation, productivity improvements.

• Global macro environment uncertainty including geopolitical events, global trade policy, consumer trends. • Continued strength in U.S. dollar could impact reported results and underlying earnings per share growth. • Potential impact of import tariffs and retaliatory actions not reflected in guidance.

Q: Chris Carey on beer category near-term evolution and share repurchases.

A: Gavin Hattersley on industry noise and caution on short-term trends, Tracey Joubert on share repurchase program execution.

Q: Peter Grom on top-line guidance and category growth.

A: Gavin Hattersley on major markets and progress on acceleration plans.

Q: Filippo Falorni on margins and aluminum tariffs.

A: Tracey Joubert on margin drivers and aluminum sourcing.

Q: Bonnie Herzog on EPS growth drivers.

A: Tracey Joubert on operating leverage, cost savings, and investments.

Q: Drew Levine on U.S. brand buyers and consumer channels.

A: Gavin Hattersley on consumer channel shifts.

Q: Gerald Pascarelli on share repurchase and EPS growth.

A: Tracey Joubert on EPS growth factors.

Q: Kevin Grundy on volume and demand outlook.

A: Tracey Joubert on top-line drivers, Gavin Hattersley on non-alc strategy.

Q: Bryan Spillane on Fever-Tree partnership.

A: Gavin Hattersley on Fever-Tree potential and company reach.

Q: Robert Ottenstein on Fever-Tree economics and tariffs.

A: Gavin Hattersley on product sourcing and Fever-Tree integration.

Q: Kaumil Gajrawala on M&A and Canada performance.

A: Gavin Hattersley on Canada strength and partnership strategy.

Q: Eric Serotta on shelf space and Fever-Tree accounting.

A: Gavin Hattersley on shelf space expectations, Tracey Joubert on Fever-Tree reporting.

Q: Bill Kirk on segment positioning.

A: Gavin Hattersley on brand focus.

Q: Lauren Lieberman on U.S. competitive environment.

A: Gavin Hattersley on promotional activity.

Q: Michael Lavery on innovation impact.

A: Gavin Hattersley on innovation positive impact.

Q: Robert Moskow on EMEA and APAC growth.

A: Gavin Hattersley on EMEA and APAC potential