MOLSON COORS BEVERAGE CO Q4 FY2024 earnings call

• Core Power Brands: Coors Light, Miller Lite, and Coors Banquet retained substantial share gains in the U.S. In Canada, Coors Light was number one, and Molson family brands gained volume share for 23 consecutive months. In EMEA and APAC, brands like Carling, Ožjusko, and Caraiman performed well.
• Premiumization: The above premium portfolio was 27% of total net brand revenue in 2024. Madrí grew double digits in EMEA and APAC, while Miller Light and flavor portfolio drove premiumization in the Americas.
• Investments: Increased stake in ZOA, and a strategic partnership with Fever-Tree for exclusive commercialization rights in the U.S.
• Financials: 2024 underlying pretax income was up 5.6%, underlying earnings per share up 9.8%. Delivered over $1.2B in underlying free cash flow and returned $1B to shareholders.

Americas: Canada performed strongly, while the U.S. faced a headwind from the exit of Pabst contract brewing, with U.S. brand volume down 3% in Q4 but improving from Q3. Canada's Coors Light was the number one light beer, and Molson family brands gained volume share. EMEA and APAC: Volumes were impacted by a competitive landscape in the UK and a softer industry in Central and Eastern Europe, but net sales revenue per hectoliter grew 7.8% due to premiumization and pricing.

For 2025, guidance includes low single digit net sales revenue growth (constant currency), mid-single digit underlying pretax income growth (constant currency), high single digit underlying earnings per share growth. Underlying free cash flow is expected to be $1.3B ±10%, depreciation/amortization $675M ±5%, net interest expense $215M ±5%, effective tax rate 22%-24%, and capital expenditures $750M ±5%. Drivers include net price increases, mix from premiumization, lower contract brewing, and cost savings.

• Macro environment uncertainty: Geopolitical events, global trade policy, and consumer trends pose risks. Impact of U.S. import tariffs and retaliatory actions.
• Competitive landscape: Intense competition in certain markets affecting volume and pricing.

Q: Chris Carey with Wells Fargo asked about beer category trends and share repurchases.

A: Gavin Hattersley and Tracey Joubert responded on industry trends and share repurchase commitment.

Q: Peter Grom with UBS asked about top-line guidance and category growth.

A: Gavin Hattersley discussed market trends and factors in guidance.

Q: Filippo Falorni with Citi asked about margins and aluminum tariffs.

A: Tracey Joubert and Gavin Hattersley talked about margin drivers and aluminum sourcing.

Q: Bonnie Herzog with Goldman Sachs asked about EPS growth and cost savings.

A: Tracey Joubert explained operating leverage and cost-saving drivers.

Q: Drew Levine with J.P. Morgan asked about U.S. brand buyers and channels.

A: Gavin Hattersley provided insights on consumer behavior and channel trends.

Q: Gerald Pascarelli with Needham and company asked about share repurchase and EPS growth.

A: Tracey Joubert discussed EPS drivers and share repurchase execution.

Q: Kevin Grundy with BNP Paribas asked about volume guidance and demand outlook.

A: Gavin Hattersley and Tracey Joubert addressed volume drivers and consumer trends.

Q: Bryan Spillane with Bank of America asked about Fever-Tree partnership.

A: Gavin Hattersley explained the rationale and benefits of the Fever-Tree partnership.

Q: Robert Ottenstein with Evercore asked about Fever-Tree economics and Canada performance.

A: Gavin Hattersley and Tracey Joubert responded on Fever-Tree economics and Canada's strong performance.

Q: Kaumil Gajrawala with Jefferies asked about M&A and Canada performance.

A: Gavin Hattersley discussed M&A strategy and Canada's sustained growth.

Q: Eric Serotta with Morgan Stanley asked about shelf space and Fever-Tree accounting.

A: Gavin Hattersley and Tracey Joubert talked about shelf space and accounting for Fever-Tree.

Q: Bill Kirk with Roth Capital Partners asked about domestic beer segment rebranding.

A: Gavin Hattersley focused on brand heritage and acceleration plans.

Q: Lauren Lieberman with Barclays asked about competitive environment in U.S.

A: Gavin Hattersley discussed promotional activity and competitive strategy.

Q: Michael Lavery with Piper Sandler asked about innovation and ZOA.

A: Gavin Hattersley talked about innovation trends and ZOA's performance.

Q: Robert Moskow with TD Cowen asked about EMEA and APAC growth.

A: Gavin Hattersley addressed EMEA and APAC's growth potential