Molson Coors Reports $11.6 Billion in Net Sales for 2024, Net Income Increases 18.3%

Molson Coors Beverage Company (MCBC) reported net sales of $11.6 billion for the year ended December 31, 2024, a 0.6% decrease compared to the $11.7 billion in net sales reported for 2023. This decrease was attributed to a 5% reduction in financial volume, partially offset by a 4.4% increase in price and sales mix. The decrease in financial volume stemmed from lower shipments in the Americas segment, including a significant reduction in contract brewing volumes, and softer market demand in the EMEA&APAC segment. The favorable price and sales mix resulted from increased net pricing and a shift towards higher-margin products in both segments.

Cost of goods sold decreased by 3.3% to $7.1 billion in 2024, primarily due to lower volumes. However, the cost of goods sold per hectoliter increased by 1.8% due to cost inflation in materials and manufacturing, unfavorable mix from lower contract brewing, and volume deleverage, partially offset by favorable changes in commodity derivative positions and cost-saving initiatives. Marketing, general, and administrative expenses decreased by 2.2% to $2.7 billion in 2024, mainly due to lower incentive compensation and marketing spending compared to the prior year. Other operating expenses improved by 59.8%, primarily due to the absence of a prior-year impairment charge and a gain from the consolidation of ZOA Energy, partially offset by costs related to the wind-down of U.S. craft businesses.

Significant developments during the year included a further increase in MCBC's investment in ZOA Energy, resulting in its consolidation into MCBC's financial statements and a gain of $77.9 million. The company also completed the buyout of its partner's stake in Cobra Beer Partnership, Ltd., resulting in a cash payment of $89 million. Additionally, MCBC decided to wind down or sell certain U.S. craft businesses, incurring restructuring charges of $93.6 million, in addition to a $41.2 million loss on the sale of these businesses. The company also experienced a decrease in volume in Western Europe due to soft market demand and increased competition.

As of December 31, 2024, MCBC employed approximately 16,800 employees globally, with around 10,300 in the Americas segment and 6,500 in the EMEA&APAC segment. Approximately 28% and 24% of the Americas and EMEA&APAC workforces, respectively, were represented by trade unions. The company's net income attributable to MCBC was $1.1 billion in 2024, an 18.3% increase compared to 2023. The company's financial volume was 79.6 million hectoliters, a 5% decrease compared to 2023. The company's effective tax rate was 23% in 2024.

MCBC's outlook is contingent upon the successful execution of its Acceleration Plan, which focuses on growing core power brands, premiumizing its portfolio, expanding beyond beer, investing in capabilities, and supporting its people and the planet. The company anticipates continued cost inflation and industry softness as potential headwinds, but also expects benefits from its premiumization efforts and new product launches. The company's liquidity and capital resources are expected to be sufficient to meet its obligations for the next twelve months, but this is subject to various risks and uncertainties detailed in the filing.