Third Quarter Net Sales Declined 7.8% and Income Before Income Taxes Decreased 39.1% or 8.7% on an Underlying Basis in Constant Currency
Continues to Return Cash to Shareholders Through Dividend and Share Repurchases of $153 Million
Reaffirms 2024 Full Year Guidance for Bottom-Line Growth including Narrowing to the High End for Underlying Diluted Earnings per Share While Reducing Top-Line Guidance Reflecting Macroeconomic Challenges in the U.S.
GOLDEN, Colo. & MONTRÉAL--(BUSINESS WIRE)--
Molson Coors Beverage Company ("MCBC," "Molson Coors" or "the Company") (NYSE: TAP, TAP.A; TSX: TPX.A, TPX.B) today reported results for the 2024 third quarter.
2024 THIRD QUARTER FINANCIAL HIGHLIGHTS
1
-
Net sales decreased 7.8% reported.
-
U.S. GAAP income before income taxes of $331.4 million decreased 39.1% reported.
-
Underlying (Non-GAAP) income before income taxes of $479.5 million decreased 8.7% in constant currency.
-
U.S. GAAP net income attributable to MCBC of $199.8 million, $0.96 per share on a diluted basis. Underlying (Non-GAAP) diluted earnings per share of $1.80 per share decreased 6.2%.
| ____________________ |
|
1
|
|
See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency.
|
CEO AND CFO PERSPECTIVES
In the third quarter of 2024, net sales declined 7.8% and underlying income before income taxes declined 8.7% on a constant currency basis. Our EMEA&APAC business unit performed strongly as did Canada within our Americas business unit. However, the U.S. was challenged with the macroeconomic environment along with anticipated unfavorable shipment timing and the wind down of a contract brewing agreement contributing to a U.S. financial volume decline of 17.9%.
Given the impacts the macroeconomic environment has had on the U.S. beer industry and our U.S. financial volumes during this year's peak selling season, we are adjusting our 2024 top-line guidance to down approximately 1% from previous guidance of up low single-digits, both on a constant currency basis. However, we are reaffirming our underlying income (loss) before income taxes on a constant currency basis for the year because of an improved cost outlook related to packaging materials, transportation and general and administrative expenses. And we are reaffirming our underlying diluted earnings per share guidance of mid single-digit growth, but narrowing to the higher end of the range, driven by the accelerated pace of our share repurchase program.
Despite the U.S. macroeconomic environment, our core power brands remain healthy. According to Circana, in the third quarter in the U.S.,
Coors Light
,
Miller Lite
and
Coors Banquet
retained a substantial portion of their combined volume share gains of industry versus a year ago when we saw strong share increases. These brands were up 1.9 share points compared to the third quarter of 2022.
In Canada, broad strength across our portfolio fueled strong revenue and share performance amid a challenging backdrop in the third quarter.
In EMEA&APAC, continued growth of our highly successful above premium innovation Madri in the U.K., and market leader Ožujsko in Croatia, along with the successful launch of legacy brand Caraiman in Romania, helped to offset some impact of the increasingly competitive environment in the U.K.
With strong cash flow, we continued to invest in our business, supporting our brands globally and building capabilities that help drive long-term, sustainable and profitable growth. We did this while returning $717 million in cash to shareholders in the first nine months through both dividends and our share repurchase program.
Gavin Hattersley, President and Chief Executive Officer Statement:
"We have continued to advance our Acceleration Plan and remain confident in our long-term growth potential. While the U.S. industry was softer than expected during the summer, our core power brands remain strong. Our businesses in EMEA&APAC and in Canada are performing strongly. Not only are they supporting our premiumization goals, but they serve as proven examples to the U.S. where we have targeted plans in both above premium beer and beyond beer. And underpinning all of this are our robust capabilities that fuel insights-led innovation, commercial effectiveness, and supply chain efficiencies - all of which help drive sustained, long-term profitable growth."
Tracey Joubert, Chief Financial Officer Statement:
"We are reaffirming our bottom-line growth and Underlying Free Cash Flow guidance for this year, while continuing to invest in our business to achieve our long-term financial and strategic goals and return cash to shareholders. While the U.S. shipment timing and exit of contract brewing volume will continue to impact us in the fourth quarter, these near-term headwinds do not diminish our confidence in our long-term growth algorithm."
|
CONSOLIDATED PERFORMANCE - THIRD QUARTER 2024
|
|
|
|
|
|
|
For the Three Months Ended
|
|
($ in millions, except per share data) (Unaudited)
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Reported
Increase
(Decrease)
|
|
Foreign
Exchange
Impact
|
|
Constant
Currency
Increase
(Decrease)
(1)
|
|
Net sales
|
|
$
|
3,042.7
|
|
$
|
3,298.4
|
|
(7.8
|
)%
|
|
$
|
1.2
|
|
|
(7.8
|
)%
|
|
U.S. GAAP income (loss) before income taxes
|
|
$
|
331.4
|
|
$
|
544.0
|
|
(39.1
|
)%
|
|
$
|
(0.1
|
)
|
|
(39.1
|
)%
|
|
Underlying income (loss) before income taxes
(1)
|
|
$
|
479.5
|
|
$
|
525.4
|
|
(8.7
|
)%
|
|
$
|
(0.4
|
)
|
|
(8.7
|
)%
|
|
U.S. GAAP net income (loss)
(2)(3)
|
|
$
|
199.8
|
|
$
|
430.7
|
|
(53.6
|
)%
|
|
|
|
|
|
Per diluted share
|
|
$
|
0.96
|
|
$
|
1.98
|
|
(51.5
|
)%
|
|
|
|
|
|
Underlying net income (loss)
(1)
|
|
$
|
374.4
|
|
$
|
418.5
|
|
(10.5
|
)%
|
|
|
|
|
|
Per diluted share
|
|
$
|
1.80
|
|
$
|
1.92
|
|
(6.2
|
)%
|
|
|
|
|
|
Financial volume
(4)
|
|
|
20.629
|
|
|
23.532
|
|
(12.3
|
)%
|
|
|
|
|
|
Brand volume
(4)
|
|
|
21.332
|
|
|
22.322
|
|
(4.4
|
)%
|
|
|
|
|
|
|
|
For the Nine Months Ended
|
|
($ in millions, except per share data) (Unaudited)
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Reported
Increase
(Decrease)
|
|
Foreign
Exchange
Impact
|
|
Constant
Currency
Increase
(Decrease)
(1)
|
|
Net sales
|
|
$
|
8,891.4
|
|
$
|
8,911.3
|
|
(0.2
|
)%
|
|
$
|
1.6
|
|
|
(0.2
|
)%
|
|
U.S. GAAP income (loss) before income taxes
|
|
$
|
1,156.7
|
|
$
|
1,087.0
|
|
6.4
|
%
|
|
$
|
(5.1
|
)
|
|
6.9
|
%
|
|
Underlying income (loss) before income taxes
(1)
|
|
$
|
1,269.5
|
|
$
|
1,185.4
|
|
7.1
|
%
|
|
$
|
(5.2
|
)
|
|
7.5
|
%
|
|
U.S. GAAP net income (loss)
(2)(3)
|
|
$
|
834.6
|
|
$
|
845.6
|
|
(1.3
|
)%
|
|
|
|
|
|
Per diluted share
|
|
$
|
3.96
|
|
$
|
3.89
|
|
1.8
|
%
|
|
|
|
|
|
Underlying net income (loss)
(1)
|
|
$
|
981.4
|
|
$
|
922.0
|
|
6.4
|
%
|
|
|
|
|
|
Per diluted share
|
|
$
|
4.65
|
|
$
|
4.24
|
|
9.7
|
%
|
|
|
|
|
|
Financial volume
(4)
|
|
|
61.033
|
|
|
63.923
|
|
(4.5
|
)%
|
|
|
|
|
|
Brand volume
(4)
|
|
|
59.946
|
|
|
61.325
|
|
(2.2
|
)%
|
|
|
|
|
|
(1)
|
|
Represents income (loss) before income taxes and net income (loss) attributable to MCBC adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency.
|
|
|
|
|
(2)
|
|
Net income (loss) attributable to MCBC.
|
|
|
|
|
(3)
|
|
During the three months ended September 30, 2024, we identified certain errors in the historical accounting for noncontrolling interest (“NCI”) with redemption features outside of our control under the terms of our Cobra Beer Partnership, Ltd. ("Cobra U.K." or "CBPL") partnership agreement and within certain other immaterial investments. Since the inception of these partnerships dating back to as early as 2002, we had historically accounted for the NCI within permanent equity with no adjustments to redemption value. Rather, our partners' shares should have been presented as redeemable NCI through the date of exercise of the redemption feature, with adjustments to the redemption value being recorded each reporting period as necessary. Specific to CBPL, since the option redemption price was not at fair value, the historical adjustments should have been recorded to net (income) loss attributable to noncontrolling interests in the unaudited condensed consolidated statements of operations, based on our accounting policy to reflect the entire change in the redemption amount as a deemed dividend and earnings per share adjustment (resulting from the redemption feature) as part of the attribution of consolidated net income to the noncontrolling interest (as reported on the face of the income statement). Furthermore, in March 2024, our CBPL partner exercised its put option requiring us to acquire their 49.9% ownership interest. Since the exercise was irrevocable, the NCI became mandatorily redeemable at that time and should have been reclassified to accounts payable and other current liabilities. These errors resulted in a reclassification of $65 million from noncontrolling interests, of which $49 million was reclassified to accounts payable and other current liabilities for CBPL and $16 million was reclassified to redeemable noncontrolling interests for the other immaterial investments in our unaudited condensed consolidated balance sheets. In addition, the errors resulted in a cumulative understatement of $34.5 million to net income attributable to NCI and a corresponding cumulative overstatement to net income attributable to MCBC in our unaudited condensed consolidated statements of operations. The errors were corrected through an out of period adjustment as of and for the three months ended September 30, 2024. Management assessed the impact of the errors and deemed them to not be material to any prior periods or to forecasted results for 2024. In October 2024, we obtained a final redemption value that would be due to acquire the 49.9% NCI of the CBPL partnership. As a result, during the three months ended September 30, 2024, we recorded an adjustment of $45.8 million to increase the mandatorily redeemable NCI liability to the final redemption value, with the adjustment recorded to interest expense.
|
|
|
|
|
|
|
The CBPL buyout was finalized on October 21, 2024, resulting in a cash payment of $89 million which will be recorded as a cash outflow from financing activities in the consolidated statement of cash flows in the fourth quarter of 2024.
|
|
|
|
|
(4)
|
|
See Worldwide and Segmented Brand and Financial Volume in the Appendix for definitions of financial volume and brand volume as well as the reconciliation from financial volume to brand volume.
|
QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS THIRD QUARTER 2023 RESULTS)
-
Net sales:
The following table highlights the drivers of the change in net sales for the three months ended September 30, 2024 compared to September 30, 2023 (in percentages):
|
Net Sales Drivers
(unaudited)
|
|
Financial volume
|
|
(12.3
|
%)
|
|
Price and sales mix
|
|
4.5
|
%
|
|
Currency
|
|
—
|
%
|
|
Total consolidated net sales
|
|
(7.8
|
%)
|
|
|
|
|
Net sales decreased 7.8%, driven by lower financial volumes, partially offset by favorable price and sales mix.
Financial volumes decreased 12.3%, primarily due to lower shipments including lower contract brewing volumes in the Americas. Brand volumes decreased 4.4%, including a 5.4% decrease in the Americas as well as a 1.8% decrease in EMEA&APAC.
Price and sales mix favorably impacted net sales by 4.5%, primarily due to increased net pricing as well as favorable sales mix for both segments, including as a result of lower contract brewing volumes in the U.S.
-
Cost of goods sold ("COGS"):
decreased 5.7% on a reported basis, primarily due to lower financial volumes, partially offset by higher cost of goods sold per hectoliter.
COGS per hectoliter:
increased 7.5% on a reported basis, primarily due to volume deleverage in the Americas segment, unfavorable mix driven by lower contract brewing volumes in the Americas segment, unfavorable changes in our unrealized mark-to-market commodity derivative positions of $34.4 million and cost inflation related to materials and manufacturing expenses, partially offset by cost savings initiatives.
Underlying COGS per hectoliter:
increased 5.6% in constant currency, primarily due to volume deleverage in the Americas segment, unfavorable mix driven by lower contract brewing volumes in the Americas segment and cost inflation related to materials and manufacturing expenses, partially offset by cost savings initiatives.
-
Marketing, general & administrative ("MG&A"):
decreased 8.3%
on a reported basis, primarily due to lower marketing investment resulting from cycling higher spend levels in the prior year and lower incentive compensation expense.
Underlying MG&A:
decreased 8.4% in constant currency.
-
U.S. GAAP income (loss) before income taxes:
U.S. GAAP income before income taxes decreased 39.1% on a reported basis, primarily due to lower financial volumes, higher other operating expense as a result of the exit of our U.S. craft businesses and related restructuring costs, higher interest expense driven by a $45.8 million adjustment to increase our mandatorily redeemable NCI liability to the final redemption value for CBPL, unfavorable changes in our unrealized mark-to-market commodity derivative positions of $34.4 million, a settlement loss of $34.0 million recorded as a result of Canadian pension plan annuity purchases and cost inflation related to materials and manufacturing expenses, partially offset by increased net pricing, lower MG&A expense and favorable sales mix.
-
Underlying income (loss) before income taxes:
Underlying income before income taxes decreased 8.7% in constant currency, primarily due to lower financial volumes and cost inflation related to materials and manufacturing expenses, partially offset by increased net pricing, lower MG&A expenses and favorable sales mix.
-
Effective Tax Rate and Underlying Effective Tax Rate
|
(Unaudited)
|
|
For the Three Months Ended
|
|
|
|
September 30,
2024
|
|
September 30,
2023
|
|
U.S. GAAP effective tax rate
|
|
31
|
%
|
|
21
|
%
|
|
Underlying effective tax rate
(1)
|
|
24
|
%
|
|
20
|
%
|
|
|
|
|
|
|
|
|
(1) See Appendix for definitions and reconciliations of non-GAAP financial measures.
|
The increase in our third quarter
U.S. GAAP
effective tax rate
was in part due to a $16.4 million valuation allowance recorded year to date on deferred tax assets. The divestment of certain of our U.S. craft businesses in the third quarter of 2024 resulted in the realization of a capital loss for U.S. tax purposes. We believe it is more likely than not that the deferred tax asset generated by the capital loss will not be recognized, resulting in the valuation allowance recorded. The higher effective tax rate was also due to the $45.8 million increase in the mandatorily redeemable NCI liability of CBPL to the final redemption value in the third quarter of 2024, which was recorded to interest expense and is non-deductible for tax purposes. Finally, the higher effective tax rate was due to a decrease in discrete tax benefit.
The increase in our third quarter
Underlying effective tax rate
was primarily due to a decrease in discrete tax benefit.
-
Net income (loss) attributable to MCBC per diluted share:
Net income attributable to MCBC per diluted share declined 51.5% primarily due to a decrease in U.S. GAAP income before income taxes, a $34.5 million out of period adjustment to net income (loss) attributable to noncontrolling interests described above and an increase in the effective tax rate, partially offset by a decrease in the weighted average of diluted shares outstanding driven by share repurchases.
-
Underlying net income (loss) attributable to MCBC per diluted share:
Underlying net income attributable to MCBC per diluted share declined 6.2% primarily due to a decrease in underlying income before income taxes as well as an increase in the underlying effective tax rate, partially offset by a decrease in the weighted average of diluted shares outstanding driven by share repurchases.
QUARTERLY SEGMENT HIGHLIGHTS (VERSUS THIRD QUARTER 2023 RESULTS)
Americas Segment Overview
The following table highlights the Americas segment results for the three and nine months ended September 30, 2024 compared to September 30, 2023.
|
|
For the Three Months Ended
|
|
($ in millions, except per share data) (Unaudited)
|
September 30,
2024
|
|
September 30,
2023
|
|
Reported
% Change
|
|
FX
Impact
|
|
Constant
Currency %
Change
(2)
|
|
Net sales
(1)
|
$
|
2,345.0
|
|
$
|
2,633.4
|
|
(11.0
|
)
|
|
$
|
(7.4
|
)
|
|
(10.7
|
)
|
|
Income (loss) before income taxes
(1)
|
$
|
353.8
|
|
$
|
483.5
|
|
(26.8
|
)
|
|
$
|
(1.5
|
)
|
|
(26.5
|
)
|
|
Underlying income (loss) before income taxes
(1)(2)
|
$
|
419.8
|
|
$
|
494.1
|
|
(15.0
|
)
|
|
$
|
(1.5
|
)
|
|
(14.7
|
)
|
|
|
For the Nine Months Ended
|
|
($ in millions, except per share data) (Unaudited)
|
September 30,
2024
|
|
September 30,
2023
|
|
Reported
% Change
|
|
FX
Impact
|
|
Constant
Currency %
Change
(2)
|
|
Net sales
(1)
|
$
|
7,066.3
|
|
$
|
7,194.1
|
|
(1.8
|
)
|
|
$
|
(13.5
|
)
|
|
(1.6
|
)
|
|
Income (loss) before income taxes
(1)
|
$
|
1,161.5
|
|
$
|
1,204.2
|
|
(3.5
|
)
|
|
$
|
(3.9
|
)
|
|
(3.2
|
)
|
|
Underlying income (loss) before income taxes
(1)(2)
|
$
|
1,228.3
|
|
$
|
1,215.6
|
|
1.0
|
|
|
$
|
(3.9
|
)
|
|
1.4
|
|
| The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable. |
|
|
| (1) |
Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals.
|
|
|
| (2) |
Represents income (loss) before income taxes adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency.
|
Americas Segment Highlights (Versus Third Quarter 2023 Results)
-
Net sales:
The following table highlights the drivers of the change in net sales for the three months ended September 30, 2024 compared to September 30, 2023 (in percentages):
|
Net Sales Drivers
(unaudited)
|
|
Financial volume
|
|
(15.6
|
%)
|
|
Price and sales mix
|
|
4.9
|
%
|
|
Currency
|
|
(0.3
|
%)
|
|
Total Americas net sales
|
|
(11.0
|
%)
|
|
|
|
|
Net sales decreased 11.0% driven by lower financial volumes and unfavorable foreign currency impacts, partially offset by favorable price and sales mix.
Financial volumes decreased 15.6% primarily due to the timing of U.S. shipments as well as lower U.S. volumes due to the macroeconomic environment resulting in industry softness. In addition, of the 15.6% decrease, 260bps relates to lower contract brewing volumes in the U.S. related to the wind down of a contract brewing arrangement leading up to the termination by the end of 2024. Americas brand volumes decreased 5.4%, including a 6.2% decrease in the U.S., primarily due to cycling double digit growth in our core power brands and lower above premium volumes, partially offset by one additional trading day in the current quarter and favorable holiday timing. Canada brand volumes increased 3.9% driven by our above premium portfolio.
Price and sales mix favorably impacted net sales by 4.9% primarily due to increased net pricing and favorable sales mix as a result of lower contract brewing volumes.
-
U.S. GAAP income (loss) before income taxes:
U.S. GAAP income before income taxes declined 26.8% on a reported basis primarily due to lower financial volumes, higher other operating expense as a result of the exit of our U.S. craft businesses and related restructuring costs and cost inflation related to materials and manufacturing expenses, partially offset by lower MG&A expense, increased net pricing, favorable sales mix and cost savings initiatives. Lower MG&A expense was driven by lower marketing spend resulting from the cycling of higher spend levels in the prior year and lower incentive compensation expense.
-
Underlying income (loss) before income taxes:
Underlying income before income taxes declined 14.7% in constant currency, primarily due to lower financial volumes and cost inflation related to materials and manufacturing expenses, partially offset by lower MG&A expense, increased net pricing, favorable sales mix and cost savings initiatives.
EMEA&APAC Segment Overview
The following table highlights the EMEA&APAC segment results for the three and nine months ended September 30, 2024 compared to September 30, 2023.
|
|
For the Three Months Ended
|
|
($ in millions, except per share data) (Unaudited)
|
September 30,
2024
|
|
September 30,
2023
|
|
Reported
% Change
|
|
FX
Impact
|
|
Constant
Currency %
Change
(2)
|
|
Net sales
(1)
|
$
|
704.4
|
|
$
|
670.4
|
|
5.1
|
|
|
$
|
8.6
|
|
|
3.8
|
|
|
Income (loss) before income taxes
(1)
|
$
|
51.6
|
|
$
|
67.5
|
|
(23.6
|
)
|
|
$
|
1.0
|
|
|
(25.0
|
)
|
|
Underlying income (loss) before income taxes
(1)(2)
|
$
|
98.0
|
|
$
|
69.1
|
|
41.8
|
|
|
$
|
0.9
|
|
|
40.5
|
|
|
|
For the Nine Months Ended
|
|
($ in millions, except per share data) (Unaudited)
|
September 30,
2024
|
|
September 30,
2023
|
|
Reported
% Change
|
|
FX
Impact
|
|
Constant
Currency %
Change
(2)
|
|
Net sales
(1)
|
$
|
1,842.4
|
|
$
|
1,729.5
|
|
6.5
|
|
|
$
|
15.1
|
|
|
5.7
|
|
|
Income (loss) before income taxes
(1)
|
$
|
121.8
|
|
$
|
106.3
|
|
14.6
|
|
|
$
|
(2.8
|
)
|
|
17.2
|
|
|
Underlying income (loss) before income taxes
(1)(2)
|
$
|
161.7
|
|
$
|
111.5
|
|
45.0
|
|
|
$
|
(2.6
|
)
|
|
47.4
|
|
| The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable. |
|
|
|
|
(1)
|
|
Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals.
|
|
|
|
|
(2)
|
|
Represents income (loss) before income taxes adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency.
|
EMEA&APAC Segment Highlights (Versus Third Quarter 2023 Results)
-
Net sales:
The following table highlights the drivers of the change in net sales for the three months ended September 30, 2024 compared to September 30, 2023 (in percentages):
|
Net Sales Drivers
(unaudited)
|
|
Financial volume
|
|
(3.0
|
%)
|
|
Price and sales mix
|
|
6.8
|
%
|
|
Currency
|
|
1.3
|
%
|
|
Total EMEA&APAC net sales
|
|
5.1
|
%
|
|
|
|
|
Net sales increased 5.1%, driven by favorable price and sales mix as well as favorable foreign currency impacts, partially offset by lower financial volumes. Net sales increased 3.8% in constant currency.
Financial volumes decreased 3.0% and brand volumes decreased 1.8%, primarily driven by lower volumes in Western Europe due to soft market demand and high promotional activity from the competition.
Price and sales mix favorably impacted net sales by 6.8%, primarily due to increased net pricing and favorable sales mix driven by premiumization and favorable channel mix.
-
U.S. GAAP income (loss) before income taxes:
U.S. GAAP income before income taxes declined 23.6% on a reported basis, primarily due to higher interest expense as a result of the adjustment of $45.8 million to increase our mandatorily redeemable NCI liability to the final redemption value related to the CBPL buyout, lower financial volumes and higher MG&A expense, partially offset by increased net pricing and favorable sales mix.
-
Underlying income (loss) before income taxes:
Underlying income before income taxes improved 40.5% in constant currency, primarily due to increased net pricing and favorable sales mix, partially offset by lower financial volumes and higher MG&A expense.
CASH FLOW AND LIQUIDITY HIGHLIGHTS
-
U.S. GAAP cash from operations:
Net cash provided by operating activities was $1,415.8 million for the nine months ended September 30, 2024 which decreased $188.7 million compared to the prior year, primarily due to the unfavorable timing of working capital, partially offset by higher net income adjusted for non-cash addbacks and the timing of income taxes paid. The unfavorable timing of working capital was primarily driven by the timing of cash paid for our payables as well as higher payments for 2023 annual incentive compensation, partially offset by the timing of cash receipts.
-
Underlying free cash flow:
Cash generated of $856.0 million for the nine months ended September 30, 2024 represents a decrease in cash provided of $265.6 million from the prior year, which was primarily due to lower net cash provided by operating activities and an increase in capital expenditures driven by the timing of capital projects.
-
Debt:
Upon maturity on July 15, 2024, we repaid our EUR 800 million 1.25% senior notes using the proceeds from our EUR 800 million 3.8% senior notes issued on May 29, 2024 and cash on hand. Total debt as of September 30, 2024 was $6,240.7 million and cash and cash equivalents totaled $1,021.7 million, resulting in net debt of $5,219.0 million and a net debt to underlying EBITDA ratio of 2.10x. As of September 30, 2023, our net debt to underlying EBITDA ratio was 2.23x.
-
Dividends:
We paid cash dividends of $279.4 million and $266.7 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.
-
Share Repurchase Program:
We paid $437.4 million and $60.9 million, including brokerage commissions, for share repurchases during the nine months ended September 30, 2024 and September 30, 2023, respectively. The current year share repurchases were made under the share repurchase program approved on September 29, 2023 and the prior year share repurchases were made under the share repurchase program approved on February 17, 2022.
2024 OUTLOOK
As a result of the impact of the macroeconomic environment on the U.S. beer industry and on our volumes during this year's peak selling season, we are adjusting our full year 2024 top-line guidance. We continue to expect to achieve the remaining targets for the full year 2024. However, the inherent uncertainties and challenges that exist in the U.S. macroeconomic environment could continue to impact our financial performance.
-
Net Sales:
Approximate 1% decline versus 2023 on a constant currency basis from our previous guidance of low single-digit increase versus 2023 on a constant currency basis. The adjustment is due to the softness in the U.S. beer industry over the peak selling season.
-
Underlying income (loss) before income taxes:
mid single-digit increase compared to 2023 on a constant currency basis.
-
Underlying diluted earnings per share:
mid single-digit increase compared to 2023 but narrowing to the high end of the range.
-
Capital expenditures:
$750 million incurred, plus or minus 5%.
-
Underlying free cash flow:
$1.2 billion, plus or minus 10%.
-
Underlying depreciation and amortization:
$700 million, plus or minus 5%.
-
Underlying net interest income (expense), net:
$210 million expense, plus or minus 5%.
-
Underlying effective tax rate:
in the range of 23% to 25% for 2024.
These targets are based on the following key considerations:
-
In the U.S., our sales to wholesalers were deliberately ahead of sales to retailers by about 1.1 million hectoliters in the first half of the year as compared to sales to wholesalers being behind sales to retailers by about 0.4 million in the first half of 2023. Of the 1.1 million hectoliters, 0.9 million hectoliters reversed in the third quarter. As such, we expect sales to retailers to outpace sales to wholesalers by about 0.2 million hectoliters in the fourth quarter.
-
We expect a remaining headwind of about 0.5 million hectoliters to Americas financial volume related to the termination of the Pabst contract brewing agreement at year end.
-
Underlying COGS per hectoliter are expected to be higher in full year 2024 as compared to full year 2023. This is due to expected continued, albeit moderating inflation, mix impacts from the wind down of contract brewing volume and volume deleverage related to the U.S. shipment drivers previously mentioned.
-
MG&A expense is expected to be lower than 2023 as we cycle both higher marketing investment which was up approximately $50 million in the fourth quarter last year to support the momentum in our brands, as well as higher incentive compensation in the prior year.
SUBSEQUENT EVENTS
The CBPL buyout was finalized on October 21, 2024, resulting in a cash payment of $89 million which will be recorded as a cash outflow from financing activities in the consolidated statements of cash flows in the fourth quarter of 2024.
In October 2024, we increased our investment in ZOA Energy, LLC ("ZOA") for cash consideration of $53 million, bringing our ownership interest to 51% subsequent to the closing of the transaction. The transaction will be recorded as a business combination, and ZOA will be included in our consolidated financial statements from the date of acquisition within the Americas reporting segment.
NOTES
Unless otherwise indicated in this release, all $ amounts are in U.S. Dollars, and all quarterly comparative results are for the Company’s third quarter ended September 30, 2024 compared to the third quarter ended September 30, 2023. Some numbers may not sum due to rounding.
2024 THIRD QUARTER INVESTOR CONFERENCE CALL
Molson Coors Beverage Company will conduct an earnings conference call with financial analysts and investors at 8:30 a.m. Eastern Time today to discuss the Company’s 2024 third quarter results. The live webcast will be accessible via our website,
ir.molsoncoors.com. An online replay of the webcast is expected to be posted within two hours following the live webcast. The Company will post this release and related financial statements on its website today.
OVERVIEW OF MOLSON COORS BEVERAGE COMPANY
For more than two centuries, Molson Coors Beverage Company has brewed beverages that unite people to celebrate all life’s moments. From our core power brands
Coors Light
,
Miller Lite
,
Coors Banquet
,
Molson Canadian
,
Carling
and
Ožujsko
to our above premium brands including
Madri Excepcional
,
Staropramen
,
Blue Moon Belgian White
and
Leinenkugel’s Summer Shandy
, to our economy and value brands like
Miller High Life
and
Keystone Light
, we produce many beloved and iconic beers. While our Company's history is rooted in beer, we offer a modern portfolio that expands beyond the beer aisle as well, including flavored beverages like
Vizzy Hard Seltzer
, spirits like
Five Trail
whiskey and non-alcoholic beverages. As a business, our ambition is to be the first choice for our people, our consumers and our customers, and our success depends on our ability to make our products available to meet a wide range of consumer segments and occasions.
To learn more about Molson Coors Beverage Company, visit
molsoncoors.com.
ABOUT MOLSON COORS CANADA INC.
Molson Coors Canada Inc. ("MCCI") is a subsidiary of Molson Coors Beverage Company. MCCI Class A and Class B exchangeable shares offer substantially the same economic and voting rights as the respective classes of common shares of MCBC, as described in MCBC’s annual proxy statement and Form 10-K filings with the U.S. Securities and Exchange Commission. The trustee holder of the special Class A voting stock and the special Class B voting stock has the right to cast a number of votes equal to the number of then outstanding Class A exchangeable shares and Class B exchangeable shares, respectively.
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words "expects," "intend," "goals," "plans," "believes," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefits," "potential," "projects," "strategies," "implies," and variations of such words and similar expressions are intended to identify forward-looking statements. Statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements, and include, but are not limited to, statements under the headings "CEO and CFO Perspectives" and "2024 Outlook," with respect to, among others, expectations of cost inflation, limited consumer disposable income, consumer preferences, overall volume and market share trends, pricing trends, industry forces, cost reduction strategies, shipment levels and profitability, the sufficiency of capital resources, anticipated results, expectations for funding future capital expenditures and operations, effective tax rate, debt service capabilities, timing and amounts of debt and leverage levels, Preserving the Planet and related initiatives and expectations regarding future dividends and share repurchases. In addition, statements that we make in this press release that are not statements of historical fact may also be forward-looking statements.
Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s historical experience, and present projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the risks discussed in our filings with the SEC, including our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
MARKET AND INDUSTRY DATA
The market and industry data used, if any, in this press release are based on independent industry publications, customer specific data, trade or business organizations, reports by market research firms and other published statistical information from third parties, including Circana (formerly Information Resources, Inc.) for U.S. market data and Beer Canada for Canadian market data (collectively, the “Third Party Information”), as well as information based on management’s good faith estimates, which we derive from our review of internal information and independent sources. Such Third Party Information generally states that the information contained therein or provided by such sources has been obtained from sources believed to be reliable.
APPENDIX
|
STATEMENTS OF OPERATIONS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
|
|
|
|
|
|
Condensed Consolidated Statements of Operations
|
|
|
|
|
|
(In millions, except per share data) (Unaudited)
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
|
|
September 30,
2024
|
|
September 30,
2023
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Sales
|
$
|
3,603.3
|
|
|
$
|
3,905.6
|
|
|
$
|
10,490.7
|
|
|
$
|
10,551.5
|
|
|
Excise taxes
|
|
(560.6
|
)
|
|
|
(607.2
|
)
|
|
|
(1,599.3
|
)
|
|
|
(1,640.2
|
)
|
|
Net sales
|
|
3,042.7
|
|
|
|
3,298.4
|
|
|
|
8,891.4
|
|
|
|
8,911.3
|
|
|
Cost of goods sold
|
|
(1,840.2
|
)
|
|
|
(1,952.2
|
)
|
|
|
(5,395.5
|
)
|
|
|
(5,575.5
|
)
|
|
Gross profit
|
|
1,202.5
|
|
|
|
1,346.2
|
|
|
|
3,495.9
|
|
|
|
3,335.8
|
|
|
Marketing, general and administrative expenses
|
|
(684.7
|
)
|
|
|
(746.8
|
)
|
|
|
(2,067.8
|
)
|
|
|
(2,096.7
|
)
|
|
Other operating income (expense), net
|
|
(65.8
|
)
|
|
|
(12.7
|
)
|
|
|
(59.4
|
)
|
|
|
(13.0
|
)
|
|
Equity income (loss)
|
|
(0.8
|
)
|
|
|
5.5
|
|
|
|
(3.6
|
)
|
|
|
12.8
|
|
|
Operating income (loss)
|
|
451.2
|
|
|
|
592.2
|
|
|
|
1,365.1
|
|
|
|
1,238.9
|
|
|
Interest income (expense), net
|
|
(93.1
|
)
|
|
|
(48.8
|
)
|
|
|
(192.7
|
)
|
|
|
(162.5
|
)
|
|
Other pension and postretirement benefits (costs), net
|
|
(26.6
|
)
|
|
|
2.5
|
|
|
|
(11.9
|
)
|
|
|
7.7
|
|
|
Other non-operating income (expense), net
|
|
(0.1
|
)
|
|
|
(1.9
|
)
|
|
|
(3.8
|
)
|
|
|
2.9
|
|
|
Income (loss) before income taxes
|
|
331.4
|
|
|
|
544.0
|
|
|
|
1,156.7
|
|
|
|
1,087.0
|
|
|
Income tax benefit (expense)
|
|
(102.6
|
)
|
|
|
(112.4
|
)
|
|
|
(292.7
|
)
|
|
|
(236.1
|
)
|
|
Net income (loss)
|
|
228.8
|
|
|
|
431.6
|
|
|
|
864.0
|
|
|
|
850.9
|
|
|
Net (income) loss attributable to noncontrolling interests
|
|
(29.0
|
)
|
|
|
(0.9
|
)
|
|
|
(29.4
|
)
|
|
|
(5.3
|
)
|
|
Net income (loss) attributable to MCBC
|
$
|
199.8
|
|
|
$
|
430.7
|
|
|
$
|
834.6
|
|
|
$
|
845.6
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) attributable to MCBC per share
|
$
|
0.96
|
|
|
$
|
1.99
|
|
|
$
|
3.98
|
|
|
$
|
3.91
|
|
|
Diluted net income (loss) attributable to MCBC per share
|
$
|
0.96
|
|
|
$
|
1.98
|
|
|
$
|
3.96
|
|
|
$
|
3.89
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic
|
|
207.2
|
|
|
|
216.1
|
|
|
|
209.9
|
|
|
|
216.3
|
|
|
Weighted average shares outstanding - diluted
|
|
208.0
|
|
|
|
217.6
|
|
|
|
211.0
|
|
|
|
217.6
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
$
|
0.44
|
|
|
$
|
0.41
|
|
|
$
|
1.32
|
|
|
$
|
1.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEETS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
|
|
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
(In millions, except par value) (Unaudited)
|
As of
|
|
|
September 30,
2024
|
|
December 31,
2023
|
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
$
|
1,021.7
|
|
|
$
|
868.9
|
|
|
Trade receivables, net
|
|
873.5
|
|
|
|
757.8
|
|
|
Other receivables, net
|
|
144.6
|
|
|
|
121.6
|
|
|
Inventories, net
|
|
833.3
|
|
|
|
802.3
|
|
|
Other current assets, net
|
|
356.4
|
|
|
|
297.9
|
|
|
Total current assets
|
|
3,229.5
|
|
|
|
2,848.5
|
|
|
Property, plant and equipment, net
|
|
4,497.0
|
|
|
|
4,444.5
|
|
|
Goodwill
|
|
5,317.6
|
|
|
|
5,325.3
|
|
|
Other intangibles, net
|
|
12,408.0
|
|
|
|
12,614.6
|
|
|
Other assets
|
|
1,183.2
|
|
|
|
1,142.2
|
|
|
Total assets
|
$
|
26,635.3
|
|
|
$
|
26,375.1
|
|
|
Liabilities and equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable and other current liabilities
|
$
|
3,210.5
|
|
|
$
|
3,180.8
|
|
|
Current portion of long-term debt and short-term borrowings
|
|
37.7
|
|
|
|
911.8
|
|
|
Total current liabilities
|
|
3,248.2
|
|
|
|
4,092.6
|
|
|
Long-term debt
|
|
6,203.0
|
|
|
|
5,312.1
|
|
|
Pension and postretirement benefits
|
|
452.6
|
|
|
|
465.8
|
|
|
Deferred tax liabilities
|
|
2,795.3
|
|
|
|
2,697.2
|
|
|
Other liabilities
|
|
368.5
|
|
|
|
372.3
|
|
|
Total liabilities
|
|
13,067.6
|
|
|
|
12,940.0
|
|
|
Redeemable noncontrolling interest
|
|
42.2
|
|
|
|
27.9
|
|
|
Molson Coors Beverage Company stockholders' equity
|
|
|
|
|
Capital stock
|
|
|
|
|
Preferred stock, $0.01 par value (authorized: 25.0 shares; none issued)
|
|
—
|
|
|
|
—
|
|
|
Class A common stock, $0.01 par value (authorized: 500.0 shares; issued and outstanding: 2.6 shares and 2.6 shares, respectively)
|
|
—
|
|
|
|
—
|
|
|
Class B common stock, $0.01 par value (authorized: 500.0 shares; issued: 215.4 shares and 212.5 shares, respectively)
|
|
2.1
|
|
|
|
2.1
|
|
|
Class A exchangeable shares, no par value (issued and outstanding: 2.7 shares and 2.7 shares, respectively)
|
|
100.8
|
|
|
|
100.8
|
|
|
Class B exchangeable shares, no par value (issued and outstanding: 7.2 shares and 9.4 shares, respectively)
|
|
271.1
|
|
|
|
352.3
|
|
|
Paid-in capital
|
|
7,211.0
|
|
|
|
7,108.4
|
|
|
Retained earnings
|
|
8,040.2
|
|
|
|
7,484.3
|
|
|
Accumulated other comprehensive income (loss)
|
|
(1,107.1
|
)
|
|
|
(1,116.3
|
)
|
|
Class B common stock held in treasury at cost (21.4 shares and 13.9 shares, respectively)
|
|
(1,172.8
|
)
|
|
|
(735.6
|
)
|
|
Total Molson Coors Beverage Company stockholders' equity
|
|
13,345.3
|
|
|
|
13,196.0
|
|
|
Noncontrolling interests
|
|
180.2
|
|
|
|
211.2
|
|
|
Total equity
|
|
13,525.5
|
|
|
|
13,407.2
|
|
|
Total liabilities and equity
|
$
|
26,635.3
|
|
|
$
|
26,375.1
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW STATEMENTS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
|
|
|
|
Condensed Consolidated Statements of Cash Flows
|
|
|
|
(In millions) (Unaudited)
|
For the Nine Months Ended
|
|
|
September 30,
2024
|
|
September 30,
2023
|
|
Cash flows from operating activities
|
|
|
|
|
Net income (loss) including noncontrolling interests
|
$
|
864.0
|
|
|
$
|
850.9
|
|
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
|
|
|
|
|
Depreciation and amortization
|
|
512.1
|
|
|
|
508.6
|
|
|
Amortization of debt issuance costs and discounts
|
|
4.1
|
|
|
|
4.4
|
|
|
Interest expense related to mandatorily redeemable noncontrolling interest
|
|
45.8
|
|
|
|
—
|
|
|
Share-based compensation
|
|
34.6
|
|
|
|
34.1
|
|
|
(Gain) loss on sale or impairment of property, plant, equipment and other assets, net
|
|
37.3
|
|
|
|
8.2
|
|
|
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net
|
|
(25.1
|
)
|
|
|
84.6
|
|
|
Equity (income) loss
|
|
3.6
|
|
|
|
(12.8
|
)
|
|
Income tax (benefit) expense
|
|
292.7
|
|
|
|
236.1
|
|
|
Income tax (paid) received
|
|
(116.7
|
)
|
|
|
(170.1
|
)
|
|
Interest expense, excluding amortization of debt issuance costs and discounts and mandatorily redeemable noncontrolling interest
|
|
169.7
|
|
|
|
174.0
|
|
|
Interest paid
|
|
(186.9
|
)
|
|
|
(201.5
|
)
|
|
Change in current assets and liabilities and other
|
|
(219.4
|
)
|
|
|
88.0
|
|
|
Net cash provided by (used in) operating activities
|
|
1,415.8
|
|
|
|
1,604.5
|
|
|
Cash flows from investing activities
|
|
|
|
|
Additions to property, plant and equipment
|
|
(563.0
|
)
|
|
|
(494.1
|
)
|
|
Proceeds from sales of property, plant, equipment and other assets
|
|
14.9
|
|
|
|
7.3
|
|
|
Acquisition of business, net of cash acquired
|
|
—
|
|
|
|
(63.9
|
)
|
|
Other
|
|
17.8
|
|
|
|
(117.8
|
)
|
|
Net cash provided by (used in) investing activities
|
|
(530.3
|
)
|
|
|
(668.5
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
Dividends paid
|
|
(279.4
|
)
|
|
|
(266.7
|
)
|
|
Payments for purchases of treasury stock
|
|
(437.4
|
)
|
|
|
(60.9
|
)
|
|
Payments on debt and borrowings
|
|
(879.0
|
)
|
|
|
(402.9
|
)
|
|
Proceeds on debt and borrowings
|
|
863.7
|
|
|
|
7.0
|
|
|
Other
|
|
(12.7
|
)
|
|
|
(5.1
|
)
|
|
Net cash provided by (used in) financing activities
|
|
(744.8
|
)
|
|
|
(728.6
|
)
|
|
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
12.1
|
|
|
|
(5.7
|
)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
152.8
|
|
|
|
201.7
|
|
|
Balance at beginning of year
|
|
868.9
|
|
|
|
600.0
|
|
|
Balance at end of period
|
$
|
1,021.7
|
|
|
$
|
801.7
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED SEGMENT RESULTS (hectoliter volume and $ in millions) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
Q3 2024
|
|
Q3 2023
|
|
Reported % Change
|
|
FX Impact
|
|
Constant Currency % Change
(3)
|
|
YTD 2024
|
|
YTD 2023
|
|
Reported % Change
|
|
FX Impact
|
|
Constant Currency % Change
(3)
|
|
Net sales
(1)
|
|
$
|
2,345.0
|
|
|
$
|
2,633.4
|
|
|
(11.0
|
)
|
|
$
|
(7.4
|
)
|
|
(10.7
|
)
|
|
$
|
7,066.3
|
|
|
$
|
7,194.1
|
|
|
(1.8
|
)
|
|
$
|
(13.5
|
)
|
|
(1.6
|
)
|
|
COGS
(1)(2)
|
|
$
|
(1,403.1
|
)
|
|
$
|
(1,552.0
|
)
|
|
9.6
|
|
|
$
|
4.3
|
|
|
9.3
|
|
|
$
|
(4,244.3
|
)
|
|
$
|
(4,332.5
|
)
|
|
2.0
|
|
|
$
|
8.3
|
|
|
1.8
|
|
|
MG&A
|
|
$
|
(521.7
|
)
|
|
$
|
(589.3
|
)
|
|
11.5
|
|
|
$
|
1.5
|
|
|
11.2
|
|
|
$
|
(1,589.1
|
)
|
|
$
|
(1,658.1
|
)
|
|
4.2
|
|
|
$
|
3.1
|
|
|
4.0
|
|
|
Income (loss) before income taxes
|
|
$
|
353.8
|
|
|
$
|
483.5
|
|
|
(26.8
|
)
|
|
$
|
(1.5
|
)
|
|
(26.5
|
)
|
|
$
|
1,161.5
|
|
|
$
|
1,204.2
|
|
|
(3.5
|
)
|
|
$
|
(3.9
|
)
|
|
(3.2
|
)
|
|
Underlying income (loss) before income taxes
(3)
|
|
$
|
419.8
|
|
|
$
|
494.1
|
|
|
(15.0
|
)
|
|
$
|
(1.5
|
)
|
|
(14.7
|
)
|
|
$
|
1,228.3
|
|
|
$
|
1,215.6
|
|
|
1.0
|
|
|
$
|
(3.9
|
)
|
|
1.4
|
|
|
Financial volume
(1)(4)
|
|
|
14.695
|
|
|
|
17.414
|
|
|
(15.6
|
)
|
|
|
|
|
|
|
45.001
|
|
|
|
47.718
|
|
|
(5.7
|
)
|
|
|
|
|
|
Brand volume
|
|
|
15.367
|
|
|
|
16.245
|
|
|
(5.4
|
)
|
|
|
|
|
|
|
43.928
|
|
|
|
45.386
|
|
|
(3.2
|
)
|
|
|
|
|
|
EMEA&APAC
|
|
Q3 2024
|
|
Q3 2023
|
|
Reported % Change
|
|
FX Impact
|
|
Constant Currency % Change
(3)
|
|
YTD 2024
|
|
YTD 2023
|
|
Reported % Change
|
|
FX Impact
|
|
Constant Currency % Change
(3)
|
|
Net sales
(1)
|
|
$
|
704.4
|
|
|
$
|
670.4
|
|
|
5.1
|
|
|
$
|
8.6
|
|
|
3.8
|
|
|
$
|
1,842.4
|
|
|
$
|
1,729.5
|
|
|
6.5
|
|
|
$
|
15.1
|
|
|
5.7
|
|
|
COGS
(1)(2)
|
|
$
|
(441.9
|
)
|
|
$
|
(440.9
|
)
|
|
(0.2
|
)
|
|
$
|
(5.7
|
)
|
|
1.1
|
|
|
$
|
(1,195.4
|
)
|
|
$
|
(1,178.2
|
)
|
|
(1.5
|
)
|
|
$
|
(10.4
|
)
|
|
(0.6
|
)
|
|
MG&A
|
|
$
|
(163.0
|
)
|
|
$
|
(157.5
|
)
|
|
(3.5
|
)
|
|
$
|
(1.9
|
)
|
|
(2.3
|
)
|
|
$
|
(478.7
|
)
|
|
$
|
(438.6
|
)
|
|
(9.1
|
)
|
|
$
|
(3.8
|
)
|
|
(8.3
|
)
|
|
Income (loss) before income taxes
|
|
$
|
51.6
|
|
|
$
|
67.5
|
|
|
(23.6
|
)
|
|
$
|
1.0
|
|
|
(25.0
|
)
|
|
$
|
121.8
|
|
|
$
|
106.3
|
|
|
14.6
|
|
|
$
|
(2.8
|
)
|
|
17.2
|
|
|
Underlying income (loss) before income taxes
(3)
|
|
$
|
98.0
|
|
|
$
|
69.1
|
|
|
41.8
|
|
|
$
|
0.9
|
|
|
40.5
|
|
|
$
|
161.7
|
|
|
$
|
111.5
|
|
|
45.0
|
|
|
$
|
(2.6
|
)
|
|
47.4
|
|
|
Financial volume
(1)(4)
|
|
|
5.938
|
|
|
|
6.120
|
|
|
(3.0
|
)
|
|
|
|
|
|
|
16.039
|
|
|
|
16.209
|
|
|
(1.0
|
)
|
|
|
|
|
|
Brand volume
|
|
|
5.965
|
|
|
|
6.077
|
|
|
(1.8
|
)
|
|
|
|
|
|
|
16.018
|
|
|
|
15.939
|
|
|
0.5
|
|
|
|
|
|
|
Unallocated & Eliminations
|
|
Q3 2024
|
|
Q3 2023
|
|
Reported % Change
|
|
FX Impact
|
|
Constant Currency % Change
(3)
|
|
YTD 2024
|
|
YTD 2023
|
|
Reported % Change
|
|
FX Impact
|
|
Constant Currency % Change
(3)
|
|
Net sales
|
|
$
|
(6.7
|
)
|
|
$
|
(5.4
|
)
|
|
(24.1
|
)
|
|
|
|
|
|
$
|
(17.3
|
)
|
|
$
|
(12.3
|
)
|
|
(40.7
|
)
|
|
|
|
|
|
COGS
(2)
|
|
$
|
4.8
|
|
|
$
|
40.7
|
|
|
88.2
|
|
|
|
|
|
|
$
|
44.2
|
|
|
$
|
(64.8
|
)
|
|
N/M
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
$
|
(74.0
|
)
|
|
$
|
(7.0
|
)
|
|
(957.1
|
)
|
|
$
|
0.4
|
|
|
(962.9
|
)
|
|
$
|
(126.6
|
)
|
|
$
|
(223.5
|
)
|
|
43.4
|
|
|
$
|
1.6
|
|
|
42.6
|
|
|
Underlying income (loss) before income taxes
(3)
|
|
$
|
(38.3
|
)
|
|
$
|
(37.8
|
)
|
|
(1.3
|
)
|
|
$
|
0.2
|
|
|
(1.9
|
)
|
|
$
|
(120.5
|
)
|
|
$
|
(141.7
|
)
|
|
15.0
|
|
|
$
|
1.3
|
|
|
14.0
|
|
|
Financial volume
|
|
|
(0.004
|
)
|
|
|
(0.002
|
)
|
|
N/M
|
|
|
|
|
|
|
|
(0.007
|
)
|
|
|
(0.004
|
)
|
|
N/M
|
|
|
|
|
|
|
Consolidated
|
|
Q3 2024
|
|
Q3 2023
|
|
Reported % Change
|
|
FX Impact
|
|
Constant Currency % Change
(3)
|
|
YTD 2024
|
|
YTD 2023
|
|
Reported % Change
|
|
FX Impact
|
|
Constant Currency % Change
(3)
|
|
Net sales
|
|
$
|
3,042.7
|
|
|
$
|
3,298.4
|
|
|
(7.8
|
)
|
|
$
|
1.2
|
|
|
(7.8
|
)
|
|
$
|
8,891.4
|
|
|
$
|
8,911.3
|
|
|
(0.2
|
)
|
|
$
|
1.6
|
|
|
(0.2
|
)
|
|
COGS
|
|
$
|
(1,840.2
|
)
|
|
$
|
(1,952.2
|
)
|
|
5.7
|
|
|
$
|
(1.1
|
)
|
|
5.8
|
|
|
$
|
(5,395.5
|
)
|
|
$
|
(5,575.5
|
)
|
|
3.2
|
|
|
$
|
(1.7
|
)
|
|
3.3
|
|
|
MG&A
|
|
$
|
(684.7
|
)
|
|
$
|
(746.8
|
)
|
|
8.3
|
|
|
$
|
(0.4
|
)
|
|
8.4
|
|
|
$
|
(2,067.8
|
)
|
|
$
|
(2,096.7
|
)
|
|
1.4
|
|
|
$
|
(0.7
|
)
|
|
1.4
|
|
|
Income (loss) before income taxes
|
|
$
|
331.4
|
|
|
$
|
544.0
|
|
|
(39.1
|
)
|
|
$
|
(0.1
|
)
|
|
(39.1
|
)
|
|
$
|
1,156.7
|
|
|
$
|
1,087.0
|
|
|
6.4
|
|
|
$
|
(5.1
|
)
|
|
6.9
|
|
|
Underlying income (loss) before income taxes
(3)
|
|
$
|
479.5
|
|
|
$
|
525.4
|
|
|
(8.7
|
)
|
|
$
|
(0.4
|
)
|
|
(8.7
|