TAP - Earnings call transcript Q4 2024 | Molson Coors Beverage Company

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Operator

Good morning, and welcome to the Molson Coors Beverage Company Fourth Quarter and 2024 Fiscal Year Earnings Conference Call. With that, I'll hand it over to Greg Tierney, Vice President, FP&A and Commercial Finance.

Greg Tierney

Thank you, operator, and hello, everyone.

Following prepared remarks today, we look forward to taking your questions. [Operator Instructions] Also, I encourage you to review our earnings release and earnings slides, which are posted to the IR section of our website and provide detailed financial and operational metrics.

statements forecast. results forward-looking materially could includes our from discussion -- or actual differ Today's

information, refer SEC. in are more as or most obligation For reconciliations please update our required recent in factors to non-U.S. The filings earnings our by discussed for applicable release. with definitions statements any included the forward-looking We law. no to assume except the of risk measures GAAP

and the indicated, in all we comparable financial prior U.S. are versus period otherwise dollars. Unless discuss year results are

the exception otherwise per U.S. period. the sourced earnings indicated. the percentage of are are in share, in unless year metrics With changes and all from constant Also, prior referencing references Sircana financial shared Beer data currency Canada when from Canada, from in

reference earnings underlying share, earnings defined share income income we our equates which today, diluted underlying per in and to earnings Further, With in underlying before per remarks taxes to that, underlying pretax over income release. you, as Gavin. our equates will which to

Gavin Hattersley

Greg. a you, core achieving XXXX retained our you health power our the shelf earned brands for for and support share the progress to continue gains XXXX of in and Hello, for environment, portion macroeconomic And Coors, thank brands in call. progress year another a growth. with line our Molson strategy globally. of of We was substantial bottom from sizable of advancing our joining and unprecedented challenging we the space everybody, U.S. levels Thank

in our growth across of portfolio. achieved price Canada, all broadly incredible segments We

continued unprofitable while growth. long-term cash power. will We generation terminated contributed we earnings that our in high investing of and business. in premiumize that strong another XXXX drive low-margin exited APAC to areas agreement continue We a also year profitable and base off contract to was sustainable businesses brewing smaller expect EMEA

and only enter invest that both with reflects $X.X share return in XXXX aligns combined shareholders balance and growth a to also but algorithm. enabled in repurchases. dividend which, not long-term it to year confident Issuing than our with underlying our our free this growing $X We delivered fundamentals sheet, We us billion healthy business, the of our to business, favorable more through guidance in billion cash flow cash

Now X.X%. quarter, up into of was of contract to Underlying with X.X% summary, strongly, high-level faced that X.X%. was In of some exit revenue expected, details. per the PEPS earnings let's our down and Americas the perform to was the business, continued out, income as [indiscernible] the net get pretax headwind In sales consolidated temporary was while fourth which underlying a down Canada related U.S. a headwind XXX,XXX about share

for the the which behavior in U.S. with contributed value-seeking Related to of U.S. as financial a the was shipping quarter, X.X% moderating deliberate brand decline as resulting to XXX,XXX as compared the full down the inventory of the the These a volumes year brand volume quarter, in improved volume. consumption approximately quarter industry by third during in first U.S. year, half shipments seen the did X% the pronounced more hectoliters the build trailed largely summer. to in in intended. drivers to

the and Eastern our the Central heightened in impacted a [indiscernible] continued competitive well in were the In volumes as industry by landscape as softer Europe. U.K.

hectoliter driven benefits continued the growth for the and net favorable including in net mixed sales X.X% strong revenue revenue sales by of mix, premiumization resulted to along was of Americas this However, largely X.X%, pricing the and from sales with pricing. This quarter. favorable of net barely PEPS in exit growth growth offset consolidated by per

our was up revised net income top up earnings performance better than was pretax was X.X% of U.S. the better-than-expected X% per Underlying Results sales industry fourth and For underlying quarter. guidance revenue in due the line X.X%. down share approximately year, were consolidated to down X.X%.

top line peak and to months lower reported softness reminder, revised U.S. quarter August. our in As guidance when macro-driven a July was season results XXXX industry of early in the we our November due third

on point It's implied down our a effectiveness and beyond also year. in top algorithm. volume growing a impact that and Again, and contract negative excluding in as point the important growth the alignment the headwind, brewery the XXXX Americas margin. with of long-term is a revenue percentage our financial line In to out brewing on contract X while pabst well perspective, volume expected of net volume is volume, PEPs as impact positive this impact of positive reduction current volume mix our our have growth for this wind annual to was on

more cost we above fully the of no reaffirmed [indiscernible] growth Tracey the in guidance. due what our support. provide further expect the the Canada benefits. ad volume was exiting as contract measured longer was line on And of income impact business pretax midpoint sacrificing with the share without well from will levels underlying We that. right in as of Consolidated marketing XXXX. grew will our controls year-end brand top as This to achieved mid-single-digit better-than-expected of Canadian

mid-single-digit well of revenue high share range sales narrowed had end exceeded In per guidance, addition the largely significantly to by quarter. better-than-expected was in to we top earnings due early a performance in fourth geographic as we beat mix growth line reaffirmed U.S. The lower-than-expected added underlying underlying performance, which effective the the November. to net as rate our sales the supported tax

X in share XX%. which had only already accelerated which by as our [indiscernible] in you valuation an number to continue under quarters confidence view if have that us straight our was at and we growth to up pace our is the executed program X-year earnings compelling given this fact, first for announced, was we in our our approximately have repurchase the would business line at XX% underlying since program, Our share share repurchases, supported growth per tracking been long-term also

from Coors continued have I'll the stems an retained power stack, share our In to Collectively, strategic of stickiness substantial priorities. retain over our core they a progress In combined from share brands. our [indiscernible] our the a confidence they Light gains, their with against X-year improvement portion healthy. is of quarters. remain start and volume the Our which gains. XX% of change step fourth both these on demonstrating third gains second quarter, the U.S.,

XX points. fourth XXXX, Coors When of and volume percentage brand brands year volume consecutive quarter was U.S. in compared of to share XXth continued industry the the terms beer a perform top of XX% on Banquet were XXXX. banquet very gains. brand. X.X in in for significant quarter prior brand it's to up the growth share not fastest-growing up well, And the top these growing small

In X fact, globally. our top one of brands it's

see #X fourth beer again, the light Molson segment scale its drinking more opportunity millennial and Gen also quarter new industry as We quarter. Coors of we remains share the both much age fourth consumer share In The legal in in national base, among particularly Z and ahead year. and brand's grew family consumers. for invest the the in the the loyal awareness, building and Light brands Canada, gained volume of

Carling were brands This and And later with respective challenging despite In number in performance on leaders industry remains backdrop. with of share markets. a took brand year. helped the U.K. drive approach, the over value in industry consecutive are core weighed soft during growth EMEA by Eastern performance in strong And fourth environment, a of volume has the was XX their competitive the brand strong us year. highly in the impacted power we and top the APAC, months the for a to performance our equity. quarter Central results which our volume core Europe, while

since ] incremental reached as [ March in overall the the Jusco by increased successful and driven country. has extremely which of XXX,XXX well Caraiman Caraiman and was has been over portfolio already in Croatia, to the This relaunch Romania. as hectoliters

Turning to beer. beyond both priority and premiumization our for beer

Our revenue for net year. of total the brand was above premium portfolio XX%

brand APAC, and our of over where EMEA comes below In half premium. net revenue

our lager -- Madri net has well the in was of with of grew by fastest-growing market expectations a premise been Bulgaria a the was revenue Lite, supported its above driven This portfolio. of The percentage revenue Miller there very which the was in driven up by as Premium also brand following for the launch net year, continued by successful brand brand this year continued business as digits XX% on revenue which our also in by this digits value. #X share [indiscernible] APAC basis beer the year. is XXXX. major Canada, in in flavor Above to U.K. net exceeding at sales last to double premiumization success premium the which terms and in in double is the in [indiscernible] Americas, and is Our premiumize. on-premise success the

We share brewer of ahead of year's Canada and launch. are following expectations growing last Canada more is in major than other flavor Madri also any in performing

our do, beyond there including craft to year, premium beer. above an In on our within have portfolio brands divesting both the expanding is breweries, U.S., our and portfolio plans in but further opportunities focused XXXX. we After as and resources big opportunity, see work we last this scalable beer in fine-tuning are underperforming

stability. the In Blue are beer, we with as of starting right in to signs we family moving brand Moon direction the are see

and non-alc, on took min in these XX held the And Moon fact, our in third become of Peroni. innovations craft as share periods. to betting Moon family plans well as And includes during share XXXX. brand. In industry Light top we the a which have both Blue newer This behind repositioned Moon results we big positive the on quickly quarters build of the both fourth like brand Blue family some of for and momentum Blue has are brand non-alc Blue

we and supply, has onshore to the As brand. a production, offers discussed, challenge of have benefits. we we improves been a consistency number scale certainty previously have It which tried when significantly of which

savings, to introduce and us this intend for meaningful and different toward for deploy drive and brand. allows we distribution are sizes, unlocks also asking increasing which which to scale margin to cost It pack it awareness consumers

of Our in time. in and we quarter kick the off time, the imports U.S. ultimately, take reason European over will, size second no of see while major it other Peroni commercial the can't plans why rival really course,

key opportunity part focus In us It particularly consumers. Beyond non-ALC a area. capture provides is plans, the our age a to more Gen is legal among big younger Beer, occasions, Z which premiumization of

have the making are majority we investing stake behind on This growing take some and areas time, are last a quarter underway. win. Alc where we about increased We well investment we detail are non in progress. plans So in spoke in brand the believe to a call right our our but to to we will ZOA too accelerate

the last the the year, unit weeks dollar in share But It's to and stake increased the early integration. X to sales total and days in brand's both this of of U.S. the in allows ZOA lead direct-to-consumer marketing, grew retail end Taking development as pleased so Food. to to awareness entirety entered distribution, we drive the the plans, with non-op premium partnership of network. brand of strength And are our strategic world's carbonated advance speaking agreement supplier a our mixes. of we opportunities have into leveraging leading and us

us a wide traditional to exclusive to for and total gives strategic agreement [ step across a preferences forward build is the a This partnership non-ALC U.S. alcohol ] occasions. The in of Fevertree portfolio in rights both brand commercialization our consumer significant beverage the range the ambition

we by I'll confident saying Now growth achieve the it objectives. that right have we strategy before I conclude remain pass long-term to Tracey, our to

XXXX XXXX aligned in plans power is objectives. brands global to we continue healthy, Collectively, our with it. great have core to those guidance and And support commercial our are

successes the we of global premiumization shape with Canada, plans our and U.S. and the changing targeted at are for in portfolio APAC We EMEA have

outside Our meaningfully U.S. to well growth. and performing operations are the contributing our of

and innovation, organization have shareholders. flexibility, and continue focused financial our return us chain balance which supply substantially invest long-term efficiencies our our support in to capabilities to sheet, our and generation compelling cash effectiveness, sustained commercial across cash helped Our improved we And premiumization to business drive with profitable growth. allowing healthy and a

Tracey. confidence to ability long-term our So our pleased algorithm in we progress our beyond. and and With to growth I XXXX that, in it will are with achieve pass

Tracey Joubert

Gavin. XX It free expectations. flow, in $X.X for you, strong expansion made profitability our and in with underlying pretax over points line financial progress XXXX. by underlying in the income supported delivered Thank our enhancing nearly We cash of margin was billion We in year. flexibility basis

related the impact levels year cost had in shipment expansion was were second of Also compensation more incentive XXXX. margin the offset inflation G&A positive NG&A, significant driven mix net U.S. impact half higher This innovative mostly related XXXX. in by pricing, to moderating largely volume savings, timing. to and in contributing was particularly which a deleverage, than improvement to declines lower due the to cycling which

a in Marketing half declines the prior spend in an by investments of accelerated in were when investments respective $XXX year But to for year globally and we our result year, XXXX. the higher the as incremental marketing with compared in periods particularly demand U.S. of the mainly importantly, to increased quarter support higher the levels given the million, continue of the both we second the brands

October XX.X XXXX, our million and shareholders. return Class up repurchased in Since an dividends cash plan. to continue shares. brands In was to It's to in have shares $X $XXX we our billion investing paid B to million $XXX cash business, X-year plan outstanding. X.X% addition we of we to the million and in repurchase In announced XXXX,

Gavin as and with ended X.Xx, approximately due to sheet our objectives line healthy XX% X invest flexibility, through improvements, balance is have quarters. financial X.Xx, provides bolt-on like offering investments support target debt which our in are ratio more with we the or utilized productivity of in that Fiber. ways the have our under year drive we no optionality in M&A net that in significant business, a investment growth XXXX. underlying that and mentioned, our we capital in debt recent strategic the coming This EBITDA was in the long-term first And just we a We to

dividend. demonstrating also sustainably us fourth cash share to of per we opportunity increase of XX. our our This pleased we to year attention provides to March share be And on is are consecutive that return X.X% dividend paid Clearly announced It to increase and more even an shareholders. today the increases. quarterly our represents of $X.XX our to

And outlook. with conclude now financial I'll our

our For XXXX, we growth long-term is that issuing algorithm. are guidance line in with

from environment is resulting in the around policy, uncertainty impact global met However, trends. and the consumer geopolitical trade by global of effects rapidly the evolving, events including

result, As by other import imposition of of our activities retaliatory the U.S. by impact and countries. reflect actions a outlook the or tariffs potential does these any not

pretax will reported our Also, well in headwind growth per income remember are underlying please net sales earnings in that and or and effective continued in a period current a strength underlying underlying the guidance revenue the U.S. share earnings Therefore, growth basis currency share and as dollar result constant using as on per to the not. rates. results exchange

sales of let's X%. $X.X underlying With net depreciation constant that amortization review billion, plus a revenue growth on minus currency basis. underlying speed, underlying Low flow our or earnings currency mid-single-digit of share a Underlying free single-digit constant growth High or and metrics. basis, per growth, on income $XXX XX%. guidance million, minus single-digit plus pretax cash

underpin in of for capital X%. with expense Underlying in historical or price expenditures to interest minus to to Drivers and North plus XX% inflation. of X% incurred or the XX% average minus other X%. million $XXX that line effective in range of X% million, with range $XXX the include rate trend Net our of America, tax and in anticipated markets line increases net annual guidance plus

Mix goal should our from our of premium our meaningful driver reaching portfolio. net be of global medium-term X/X above we about a advance as revenue brand growth toward

for progress big to initial come and as EMEA, with the standing some non-alc. continued from A well to Peroni are and where, chance APAC this shared, We Canada in traction in Blue expect premiumization as we see as in Moon. Gavin U.S., starting

smaller of X.X a will in the benefits regional top quarter of On divested year. expect third the headwind Americas basis, contract produced we cycling volume line, approximate the last U.S. million and be We volume breweries in of million to end $X.X hectoliters contracts from about hectoliter ZOA [indiscernible] relate in XXXX. in craft hectares the significantly the XXXX. in provide consolidation and combined brands to these pabst we revenue XXX,XXX we at the in as and financial Fevertree Canada also XXXX incremental PEP to to of more the While brewing back terminated

shipment down Given more is trends. follow first the the volumes volumes are the of the brand particularly of over the the phasing course period half In up core the the additional XXXX the quarter. And considerations. power when several typical volumes There XXXX, U.S. are quarter, first first X.X%. were brands PEPS the cycling demand year wound for in sequentially in in year, particularly prior headwind we strong U.S. pronounced [indiscernible] seasonal in

of anticipation strike. typical of of build a volume XXXX. the typical first the we financial XXXX PEPs our the quarter first of into do first to increasing than extended benefited XXX,XXX higher inventory of second from similar Worth U.S. contributed XXXX, in bold in the in half quarter the Also, despite of inventory given and XXXX, than This Fort exit hectoliters X.X% we of This higher bold quarter inventory volume. anticipate not level

Turning are transition to which on first few related In anticipate reported in incurring fees the to the costs. our which next partnership, onetime costs determined be ongoing. be over Fevertree discussions will will the integration we quarter, based results. months underlying and The

also number of margin from expect drivers. coming year We expansion a full

productivity benefits inflation improvements lower increased brewing mix on input contract and premiumization, cost from and include costs They moderating savings. and

focusing commercial customers We to existing also continue put and retaining brands our pressure attracting expect globally, behind to ones. the on right new

we does pleased oriented growth marketing business goals. to our continue not in cash-generative our closing, model to and progress business strategic step capabilities in deep the long-term the XXXX. believe highly with financial to are and right strong growth In our balance a a sheet, require to invest make outlook achieve We strategy ability we we and strategy, and our our us Given have with investments. return our brands, healthy in changes have

cash through With would we also your questions. share growing to returning program. shareholders a like open meaningful that, While Operator? to and repurchase up to a dividend it

Operator

[Operator Instructions] Wells Our question Chris first comes Fargo. Carey with from

Christopher Carey

comment the you'd category you beer bit wondering near-term specifically Gavin, what being I on to was or a if horizon we're seeing use. like could year-to-date whatever time

about and been that's recent or volatility months. consumer in preferences. I Whether there's changing weeks a think debate weather increased

context thinking and love industry to of some seeing we're thoughts data you in your near-term how perhaps this on you're I'd what evolution the how dynamics get of in the But and the see question, about but a more in guidance? you are repurchases of in for Tracey, of any Or just year outlook? full share And context year. sneak the buybacks then this your factoring share on any

Gavin Hattersley

timings Thanks, Chris. of Well, a let Chris. trading look earnings lot first, weather industry at if mean I the we I'll your things over noise, of with with But sorts all Look, mean, on. about of that and lot talked speaking there holiday I'll question. was I going and and right? Tracey answer a turbulent deal days you calls XXXX, our

But fact, up trends And year. was it think the we cautious think progress relates call of the best to say Summer did current experienced of is I And call, I we as And short-term before ended not being I in that on being trading, performance a, Chris, QX last in I is particularly good. see think important, we industry said quarter right? and the that, what QX. would last

to in of the what's happening XXXX, basis, And in exists for week-to-week utterly the much data get noise even what available industry. once with XXXX. on better quarter that experiencing sense the you're were it's in I publicly remove you full you a you get to Because dissimilar we what and think first seeing a

not Chris. timing short holidays very just is would based noise draw on there caution period Again, of you and assumptions data, to I of weather a and around

Tracey Joubert

an we intend in a reminder, component. Chris execute terms to our systematic and repurchases, of opportunistic well just look, repurchase as share both continue its to execution share do increase And program. as

if the consistently ability us models with program, allows that to the indicate lean So our in to but if also appropriate. execute

it which in program, announced about X $X as based and of a XX% So X-year first we've it just utilized we is on October the said, billion program. Gavin already in our and quarters XXXX,

it's of the of the clear, share of a can timing number our factors, very commitments. think commitment capital XX our I But repurchases. driven So including to execution the be by

planned But So investment that for committed could in example, we that. the as program fever tree drive I are in put we share place. a to said, repurchase

Operator

Peter Our UBS. from Grom next comes with question

Peter Grom

question wanted just really up to follow Chris's there. on I

you Just growth perspective guidance. category the I across fever some and alluded on as your about I cetera. actually But et guess are geographies? know various brewing, the how thinking contract puts key just trading, you , underlying top line takes, to, Tracey,

of cycle you steady would are of summer, category source Are Or we you the move comps? improves, the improve assuming of assuming growth a easier category as that rates growth kind upside? be into status more

Gavin Hattersley

weigh you Thanks, similar interest trends at major interest but beer economy inflation And seen Peter. inflation start Canada, to right? they come markets, industry rate Look, we've are the seen fairly U.S. In Canada rates, if to past and on We've the look seen to our cuts. continue have we down.

seeing said not meaningfully the I we shifting. in fairly are that from engage to previous pack in shared Chris, different to consumers U.S., channel the looking still we're and As conscious trends anything

overall do been as and economy premiumization, puts what is competitive plays slowing contract the perfectly but through the The from acceleration into line in continues plan. lot same rightly the you It not different brewing. at U.K., we as top which the moment, take, down. out, Tracey the our for is XXXX. back the to industry a And we've pull Fevertree have example. end our seeing point of of the And takes is And guidance. at said, Inflation is In time, see is improving.

But that's it's we're beyond progress core plans, whether whether our acceleration whether overall on making or premiumization progress in making brands globally, we're acceleration that our beer. that the more broadly, the it's

into all account it's taken factors of those So fee.

Operator

next Our comes question Citi. from with Filippo Falorni

Filippo Falorni

ask to wanted margins. on I

included long-term mix that of you and your benefit inflation line, or takes guidance? margin provide context And can of what the any aluminum gross your of terms hedging the the know in have and pricing, particularly for -- on -- you you on I expect mean first, impact in commodities, puts so you programs could on So commodity but thoughts that some potential the COGS? just tariffs and

Gavin Hattersley

margin make our about talk Tracey did strategy the view, let the to we freedom. few for of changes ] years. I'll [ the sourcing aluminum From question. over an Thanks last point

And United all is so in States market. which almost United of is to currently you more our purchased our the States But want do give a or aluminum Tracey, obviously consumption, biggest broad?

Tracey Joubert

Yes. Sure. Filip.

So in terms of don't specific margin of margin last gross that underlying did we in X gross margin, gross our percentage look, improve Note the give But guidance. each years.

So look the does on we underlying so at XXXX. in as margin anticipate growth pretax XXXX we our building saw expansion our long-term guidance, expansion algorithm

of drivers that. the of Some

costs. to inflation So multiple levers algorithm. we that your we in input expect do on support And XXXX, do our growth moderating point, have

includes brewing continue which discussed from also our lower the it mix productivity positive at premiumization So net look drive we contract also well improvements, pricing in volumes as cost business. entire that to will guidance, we across as positive and savings our

the So would some would that those the expansion. things I drive some are say of of margin

Operator

question comes Sachs. Herzog with Bonnie Our Goldman next from

Bonnie Herzog

had with line your guidance, mentioned you which All is question your on algo. right. in I long-term a

could of the meaning but I leverage on this touched should a you guidance you this know savings more a a get EPS year. efficiencies us little us, you bit leverage hoping Your for such top you implies get could expect to fair this as some growth, operating this, and the from amount year? you've unpack And of color the drivers cost But give line.

in you rank instance, quantifying of could these much then next you that helpful. be think I of and comfortable increase feel could for impact, And beyond how maybe maybe some don't year savings maybe cost would if -- that order

Gavin Hattersley

do Thanks, you Tracey, that? Bonnie. want take to

Tracey Joubert

Yes.

things operating I point in a terms to mean, operating in can the and leverage So I our of margin. improvements that couple of

our eliminating last in So lot savings. of years focused over brewing further investment well breweries, of secondly, in number and efficiencies will and drive the a one, brewery. is efficiencies of waste, that to the driving couple on efficiencies costs And we've our taking in as help capabilities our as out invested contract cost terms there

bigger of the and drivers efficiencies. cost So around that's one the

The really though of we on other thing for a with of to marketing is number just that of that we're expect and cetera. increase driving et around There's last puts also some investments. investments Fevertree the our in coming we out. our return innovation, example, do of years couple the marketing of And making spend, spent terms engine even takes

we So divested we example, funds for redeploy now XXXX. craft underperforming of brands in to breweries, our and those other can

brand. that. those So then And again as savings bigger is freight And one then we'll utilize that ocean Peroni there's the at look onshore. to items able And by to that. continue of meaningful cost savings well the we're bringing the of production doing to support marketing investment

number investments efficiencies years areas that that over as of that we help that couple made of will continuing So drive that levers can in the we operate. look seeing coming start through a at we've we'll certainly in capability the we pull a last of our margin number now to

Operator

from with JPMorgan. The Andrea next question Taxeira comes

Drew Levine

X%. Gavin, I brand the down wanted Andrea. for volumes were U.S. on on Levine Drew ask is to This

I of probably data channel those the suggest came would better think, than a some by think peers in shift maybe that tracked a what channels. as despite, bit other described has I towards been

seeing channels in outperforming, the maybe on channels, untracked better. So performing mentioned perspective is on-premise a be on perspective? some different any some behavior, but helpful I from if you're know maybe moderation value-seeking consumer what color would you

be would there help any So great.

Gavin Hattersley

Drew. Thanks,

I'd think was one extra point trading day. there I think is I an make

the did key time So them away year calendar period. X on-premise into I sort channel. see earlier that's C-store the continue also Thanks, now back from the certainly that view, would those certainly outperform. stores we've would say moving move are in to And slightly have ones. seen of helped. But broadly, consumer From Drew. point C in the We've of a summer we it seen

Operator

The next with Company. question Needham Gerald comes & Pascarelli from

Gerald Pascarelli

to I go wanted share the repurchase to commentary. back

assume earnings any to growth terms to is buybacks, potential XXXX, on outlook Just we the to think growth, remaining about trying authorization single-digit scenario? being maybe the in color Tracey, part shouldn't us it the as a look aggressive case with lining that for you at the like straight you be base of that So it get remaining maybe upside of to but bit for more there. high fair little

Tracey Joubert

Yes.

mean, of play single-digit our a assumes the high factors underlying by repurchases with about I that couple our also to exchange. talk EPS and is plan. being EPS foreign tax share our growth into repurchases. that of as So things other is in And consider minimum we some guide driven line at certainly growth, But some XXbX-X

is So basis. our on a EPS constant not currency

that. I shareholders. impact look and making the be guide to XX% But that tax XXXX -- all as of we'll XX% And effective to have we rate at continue XX% could ForEx investment from reduced decisions said, was for XX%, the to they'd in sure then XXXX. the our we're models allocation So underlying right and our make capital to our returning to return right to

yes. So,

of it repurchase, a investments for number I factors, like Fevertree said, whether by As driven could we we as The planned said, share have vary. example.

X reminder, a and of spend. quarters the as So Actify [ into sort And that we're also, we may amount this. just ] only program, impact

Operator

disconnected. to Ottenstein question has Rob The Rob ahead. please Evercore. Looks go of like Rob, goes next

on Going Kevin Pariba. to question Grundy from BNP next of

Kevin Grundy

Great.

more imply confirm the then that's on in that housekeeping X% relative some quick of Europe. that the I exit your volume that housekeeping and challenged just X% a expectation down to for and Tracey. First, seem to was is based to mix. for your picture an X% question rate favorable It to price X% to U.S. say. commentary bit bigger question. than would a Easy me wanted would guidance a question, then The like

could headwinds from just the longer bigger We drinking impact lot you GLP-X, frequently, broadly. impact alcohol on looking now is get question a over negative risk. from was potential consumers questions on out impact picture demand the more potential general, the may less surgeon hoping outlook I of the cancer linking younger investors the consumption comment and Then term. industry how and former on of advisory from recent the these they

U.S. but to it how And broadly? beer, portfolio. your more impact just your may not as pertains it strategy alcohol then So directly

Gavin Hattersley

Tracey? to comment first Thanks, Kevin. bigger the I'll you on picture. the take want Do one,

Tracey Joubert

Yes. Yes.

achieved really takes line don't contribution look, XXXX, In on APAC well. as line NSR we guidance puts we've course, XXXX, focused from remain growth performance. strong got also a U.S. including mix. and of of on a our Canada. our mean, annual We top volume so the and business specifically But factors, number Kevin, is just top from share in guidance. and there give So drivers EMEA price we dependent both reminder, for as The and I our

So will from benefit a bringing Fiber. we receive

volume that Gavin million brewing of mentioned naked cetera, reminder contract we're well, to But our going lives, taking of hectoliters we're out up X.X in et be launching. a as XXXX. system

on well. volume So that impact financial as our an have will

Gavin Hattersley

Thanks, your And broad Kevin, questions Tracey. answer that. let mean look, I So are and one, me right? very try

variety months. and includes in of right? been that that surgeon out there from since several which cause past the Obviously, the point a warning XXXXs, in consumption problems. had I on viewpoints label health over general They've a referenced federal may science have alcohol had government You on few we've surge would general, the the reports the

mindful a a offer beverages. that, we has to of RTDs. said, Company alcohol our a drink non-alc approach of committed portfolio part of beer like key changed total our where as a whether our broader non-Alc long-term beverage think including it's and of to low We're years company ago, name to got a consumers That's And we've the range the moderation. of Coors replacement. no diversification and several long into got into company. Beverage and options, we Molson and And I transformation consumer alcohol beers we've strategy supports that trends around drinking categories and X-pronged diversifying you with beer beyond it been

that's We've pure that doesn't where of got trip us plays, is and and with got then between got a absolutely exist us ZOA at every for great the is directed brands perfect alcohol it incremental we've for Blue an We're highly because that. a we've too which Moon, portfolio non-alcohol Naked and at is both non-LP Then occasion of Peroni is alcohol premium at X. and necessarily launching a sits intersection and example level cocktail. which non-Alc adjacencies, Life, great great, that non-land

Coors #X proven of occasion. gaining that beating we've brand, fine that Kevin, distribution, we behind gaining consumers including is younger we're then right? our It's mean out a in And example grow that, the and can fastest-growing Banquet space. traditional I consumers, brand. beer beer gaining Madela drinking We're legal age

demands on meet go-forward both the very the we that basis. now we portfolio and confident our consumers of a So building that are will feel

Operator

next to Bank America. Spillane of question goes The of Bryan

Bryan Spillane

come FeverTree you Grundy's together, how Coors pick bit venture that's and just Gavin, little just I'm you going of like think the do with a the up to give right? to to this about Can you're what now to decision you us it. mean maybe FeverTree may have Coors different, is just can think missing to on Kevin that Maybe, that there what's engage last be be? color Molson something must Molson kind know curious what maybe I and more that on point. just -- and add

Gavin Hattersley

Yes. think I drinks U.S., beverage building to said, strategy. the portfolio to actually carbonated right, supplier And in Great leading I even And it's as of premium the world's Thanks, well, occasions. Brian. the non-alc consumers meet needs Look, various world great the key is further, mixes. that Fevertree of it's our is -- at and question.

It's availability often tonic the intersection as non-alc actually nicely as it's And is the steadily ginger beer its beer of really fits is and #X grown said, stores lead it sold. I in where in beer. at

I before, It's And service thousands of talked outlets one are those of serious in competencies gets it? we to not of that big Brian. tens and broader business. I think about in them think has the to I network we network the at different XXX,XXX growing not our do capabilities It's delivering credibility alc. I mean is business. What past stores which been to past. bring that a network and over distributors we've a Fevertree core Fevertree it our mean, we about of our we have to tremendous tremendous delivered a and the to provides moment.

substantial. broader our So is reach

quite part We're also first meaningfully in resources of our this the increase non-Alc going to year.

And from from of and with as stake view in point Solar, life mass week. brings we've said, coming, got majority year. non-alc noted got us a So we got our which a to late in last I we've portfolio took is we've and critical last every which

here. think we and our this. -- we mean to about non-alc -- So credibility well, very excited real that are It we're system I provides serious business about

Operator

Ottenstein next of The Rob to Rob, goes Evercore. question

Robert Ottenstein

Just follow-ups, I a if may. few

could your can on Gavin, idea you and So Fevertree out. this X, statement the you years X just economics income agreement. rough give sticking of Can like X, how the potentially impact us what a look

Just include at And model you for any who right, then know tariffs. kind second, anything any going it's of way mentioned us happen. And what's impossible I guidance that because obviously, guidelines it for to to to, all? your knows doesn't

Lite, Coors brewed are But again, Miller Canada? we to any your impact on percentage they of run we do brands? American in for from in sensitivities considering us model we talked come And as And come when outside should Trudeau you terms in those help of of already tariff-related about be Did of see the Canada in boycotting can Are Or your brands about Light, our kind talked which issues they you other did any what from you that sales see aluminum, U.S.? out that that XXXX. Canada. Canada. U.S. brands,

Gavin Hattersley

big Two questions. Robert.

Peroni. import are me and about the That's brewed the We potential really and -- that we the United in-house with The you brought the we've from in from Pabst, portfolio And about U.S. as and Let our as talked the the product that was into have I'd that one for United we've the first really Peroni start States know, make. point go big that last brands very produce in Mexico. Almost consumed little all Canada we excited States. was we're the we in one. second are forward. imported of

Beyond that, immaterial minor very across there few from perspective that from are Canada a have a come Mexico. and brands volume

produced majority brand is, of As it for portfolio Canadian the Canada, in the relates consumers. to vast it's Canada again,

so Europe, impacted comes agreement think the be Canadian Canadian-produced U.S. that We with vast that. majority, import have from I wouldn't But of proved a it are aware tariffs. large by and consumers again,

sourced From States, the I being in in majority an which United the again, material United earlier the our of of about materials aluminum come everything, point from they produced. markets. spoke input input entirely all but not Robert, States vast countries view, Obviously, on the [indiscernible]

[ markets agricultural and hubs consumed. input the like our it's sourced costs Balmain of which so all is All on, in in ]

markets. other products it with as there most to in relates of same boat but the almost But our tariffs businesses the market all of they say, is which in uncertainty, our -- produce as the bigger of Certainly, all you our fact that as the in in exception we consume. we're

Fevertree you're because we've into real this But detail brand. far concerned, obviously, give we of is we as this looking with As that entered level for. relationship potential that look, don't see

obviously, the Tracey expanding place earlier is as the our perspective, it's onetime that take resources be did and volume working a going costs said, mention some those incremental And see have year from what behind XXXX integration will we in opportunities of it. a off their to part growth growth this, we're see with I which through and We base. XXX% to we're year. business, to determine that, associated our will are. absorbing we of but

of at are top They're this millions, it through but it put give not estimate a of our in resolve is the tens about brand a right? They finer of operates on to been hundreds discussions, and the just that we've in end all the that millions context, we'll premium. right once and

revenue view. a to be -- it our going #X point barrel of per might of point even So a view, hectoliter now it's from per revenue from

efficiencies, for drive will really looking be and look partners as it relationship. chain and But of our integrate supply we we cost our supply As out excited opportunities in Robert. value certainly we to further of are look about it, at we this terms chain

Robert Ottenstein

I think covered Tracey. both I questions, profit

Operator

The Kaumil to Gajrawala Jefferies. goes next question of

Kaumil Gajrawala

Two things.

-- Coke, start when which that fee to about desirous deal the Yuengling which think guess, of with ownership. along partnership for the is and the treatment, The partnership, partnerships to first, not I from we lines went specifically,

and M&A? things you in Fevertree about the about newest we of think of on, how As all these do being then the of it think context

small will the Canada. right have ownership. a more on M&A, Why was a that a stake, that? to and a is you've ZOA strength P&L you that bit amount behind full the be Can on distributors. of more what which not done bit eventually what with aggressive narrow kind out whatever maybe business second of of question, sort of then goes And your us P&L lot being quite to give little is versus more the the like sort of Why contributes

just to a us if ongoing, something prepared couple continue. in may gave if this not of bit the remarks, learn but there last sort nice something were quarter love a You that is of building that's hits or

Gavin Hattersley

over quite Thanks, not some performance It just Kaumil. in a has the latter. couple mean time. is the not I building been It's nice of yes. Canada

in includes strength growth share RTDs. For example, includes driven we've period growth growth and months seen in XX brands. of consecutive that of our by the It's

brands our portfolio execution Coors on those expanding premiumization [indiscernible] Our power our by of Molson of and grew on of of the of It's and the the trademark, Light brands, core strength strategy flavor we premium expectations. beer which driven segment tier into share last and Miller the one then beer Lite, ahead our we category. through is in And launched delivered above fastest-growing year in has brands of the the the the sells fall of which X, core

company And RTD in fastest-growing flavor, the in we're space. the

us Canada's is the for particularly we've where results, said, to gives got premium It's useful quite deep. space. the and nice is success I So in U.S. above for, It our the opportunity some time it going strengthen now, blueprint as broad. been a

mean in Canada we're I been at good Fevertree has look, partnerships. Performance summary. in strong

over of I core world. think strengths, our core one We've partnerships got that's competencies. all the

Tracey I I mean, cash, a of uses investment, we specific in which into to, As to getting it string-of-pearls bigger. Pearls fits our perfectly talk relates right? it about little mean, approach, alluded the didn't

string but than Pearl's is our little of part the in of a the made approach. that investment Fevertree some in we've ones past, so bit it's of bigger And the still

representing market. biggest Because market. It's did do potential it? Fever-Tree. The their States we in their is see United them here real growth Why we We're now. biggest

which the the value tree XXX% But time, created some going believe included will P&L. to level. at be our same of we is advantage wanted fever So we the take in at of performance a be to

so that And largest now with and we're second position. the shareholder, we're comfortable

Operator

to Eric next of Eric? Stanley. Serotta Morgan question goes The

Eric Serotta

Gavin, booking going gains is line? Tracey, to to equity at shelf guys U.S. any just through will that your sounds that talk brand for the held just partnership and of XXXX, coming cost? just could you like in that brands First income an be the clarification, come accounting last strong are company, XXXX? be And it Is you Fevertree. the correct? off going a equity in a the year then from revenue bit overall Or And had about in really income your expectations ownership space for you core for so

Gavin Hattersley

a fall would in that little. shelf shelf And I XXXX, the saw in shift Thanks, of I -- grew say back we them Eric. in research we held we even an those grains. mean, the research, of unprecedented spring

us when significantly. base, XXXX that you the means we're to that So compare up

discontinued of items, head adjustments each retailers as XXXX, and they year, space. to shelf delete minor spring Now slow-moving add ones. into we generally, new there are And.

again. of in But to in. expect spring or again. on in we It's a case it's be the the haven't XXXX, And we to while the little the dates to once all hold got again, spring early share early, and gains days expect that we yet, the spring for

bit. mean resets. the to Coors it's actually feel seen in that good Coors a gains Banquet. contributor certainly much Light of we the about a quarter, to share step held And with in why accelerated Miller so that big fourth that gain on we been and Light, we've Shaft change little really So I we've the

brands very, to about the back share than said we XX% of we fourth about points in burs was higher in QX, were And compare you if around than before. that that, now basis Well, those think more with XXX quarter. it it's very we're pleased actually obviously, retained I XX%. it XXXX, we're we

deal cutting the Tracey, yes. you want to do question? So with

Tracey Joubert

Eric. Thanks, Yes.

So products the Fevertree license in sharing XXX% of sold the in to the going U.S. and we're we costs, we so all so it the results agreement certain in include for report of share look, U.S. how recognize products EBITDA jointly profit We'll marketing, level. in revenue which a the in had terms U.S., to the will their of in distribute at

pay also we'll via COGS. royalty, be included which our a then will them in And

on fever investment exclude underlying entity, tree market to and that In from that a terms the and mark in business made it will basis the results. be reported our we'll it will cost of we've

Operator

Wealth to The next Capital of question goes Partners. Bill Kirk

William Kirk

you largest segment populist to movement, to, using American should domestic do the stop agree set maybe that brands Gavin, wants if think, beer domestic the help positioning And your the you beer rebrand Do So changes broader industry segment? it terminology? the segment. that competitor within think that combined with would I -- that a help

Gavin Hattersley

and to Bill, good morning Thanks, you.

I and our roots our brands and obviously Canada brands we're portfolio. of heritage States. would the And plans many Our knows focus is both in back acceleration about iconic our our on and great -- United go very the generations of suggest everybody our that in proud

that. and brands as core share XXXX are on I've And since said our retained said our of a brands, gain great is place, a which remarks, and opening substantial particularly call we in our lot this in

And is. focus so our that's where

Operator

Barclays. next The Lauren Lieberman question to goes of

Lauren Lieberman

bit Great. bit heard of of U.S. the premium space. above-premium about season through competitive a step-up like both about earnings your promotional just read I'd with this hear to love activity We kind little in a the the environment a in in

curious So to seeing just I that was you're not? or degree what

Gavin Hattersley

good to you. and Thanks, morning Lauren,

rational seen regular that though, in fairly summer, We in Most QX. thing. activity. from haven't or place of QX, takes level view. anything there in It's that point some in that common place takes a It's QX Most of promotional is of the unusual a of not QX.

see You point view. markets. unusual different different of haven't a we from But things in anything promotional seen

dynamics, and for right we'll competitive a the our strategic evaluating And as take to what's brands. overall consumer we always do landscape, do, approach we'll

Operator

of question The goes to Sandler. next Michael Piper Lavery

Michael Lavery

and a Just just have back innovation to that cases, an maybe the X% higher just little what category space seen moving exaggerated Moon innovation more skew have come Blue that are the or things like buzz sense to lot in volumes? wanted bit of but Box ABV you're a a Extra and some you towards on balls, spike direction version. Bold with of an impact has Do simply in is alcohol

went? if that little of helping that on touch some of you your do maybe drive if and is as -- that And And in on the Also did show. direction that for you get the lands how just innovation is did needle sell-in for weakness you bit a related, have move maybe a well, sense ownership to resets. innovation time is on that where shelf how -- ZOA landing on can

Gavin Hattersley

questions Michael. lots there. Thanks, Yes, of

innovation, ourselves just that, impacting our is negatively say me both see Let don't competitors as no, from I beer that category. a and

at coming beer if where is mean, industry, I RTD overall positive. are playing. which the it's against nicely I Spirits' spirits. you think of an look I guys we growth fact, as mean in beer space, all very In the did

will spirits you And -- so be exclude from it quite if it just if performance, negative. the look spirits at you prepackaged

spirits in competitors and that, of quite meaningfully So all the growth coming play we is from our there. and

previously singles talk ABV. is to what trend that relates convenience-led in terms fit And we've innovation new launches higher our coming, for first-ever around are and I alcohol, it this consumers higher pipeline. X got are great did mean, looking about As that of we that

create that right and panel broader this in of did new culture GenZ insights, we but Mix, innovation top we Happy out coming with drinking area a another has that for looked as is got we've and We've at about tuners been helpful Thursday. that. with got Blue happy we how all this and came example, And sort know level. Thursday panel X% at year. if of innovate simply really legal of And Moon they're great talked don't and spike before, I Margarita Bold for then for we've coming us Extra, last age consumer

It like a Cup us products, or where e-commerce and we how inform League it's digital One and our partner helps from space. we through and we go who sell also with, Formula market whether

than probably helpful I've but your broader question, a So direct Michael, that's hopefully, little gone

Operator

The Moskow Cohen. goes Robert last of question you, to TD Robert?

Robert Moskow

APAC EMEA any to you the as slowdown flattish for in can consumer company that there attributed in There And grow year? in we backdrop. just Or like your was were quarter heightened divisions you competition significant fast of to XXXX? the a pretty be think do as to reason the and the going we're believe gen. Is fourth rest those

Gavin Hattersley

Thanks, see some when mean, certainly, late Robert. although satisfactory, did see consumer in of Look, with consumers demand but We in earlier. the season weather was to the we Christmas soccer, I summer XXXX obviously in the U.K. as euro offset in that. opposed lot season you it in XXXX. softer a did uplift was the compare through coming

certainly we Carling, specifically, business the to the drive value-over-volume EMEA We volume But relates and continue growth unit, both in volume U.K. brand took a value approach. strength of the versus will to we see to competitors. support both our it took we which But our over value is strategy. and across As doubt, that our brand continue a business for really, no biggest APAC in channels.

It's during XXXX. in Bulgaria in very market new nicely launched

APAC. our the APAC our than time, question, [indiscernible] talked past. Thanks in quicker in grow And business We've We We've America. brands have XXXX. EMEA, about plan reason another Robert. got see North I over EMEA for in won't why the market businesses great no for

Operator

Thank you.

you have concludes call. Thank now That today's for further joining. We questions. no

You disconnect may now your lines.

Molson Coors Beverage (TAP) 13 Feb 252024 Q4 Earnings call transcript