Molson Coors reaffirms 2024 full-year guidance, belief in long-term strategy

From Molson Coors & Alex Parker,

✓ Molson Coors grew its bottom line and held top line essentially flat while lapping difficult prior-year comparisons
✓ CEO Gavin Hattersley expresses confidence in company’s long-range strategic plan and financial objectives
✓ Molson Coors’ core brands led the way

In the second quarter of 2024, Molson Coors Beverage Company grew its bottom line and held its top line essentially flat against difficult prior-year comparisons as the company reaffirmed its full-year guidance.

In a call with the investment community this morning, CEO Gavin Hattersley projected confidence in achieving the goals laid out in Molson Coors’ long-range strategic plan.

"We are confident in our strategy, the trajectory of our total business, and our short and long-term growth objectives,” Hattersley said. “We’ve just delivered another quarter of bottom-line growth and strong cash flow, and the highly cash-generative nature of our business has enabled us to continue investing in our brands and our capabilities to support our progress against our strategic initiatives.”

In the second quarter, the company’s underlying pre-tax income grew 5.2 percent, while consolidated net sales revenue was down by 0.1 percent as Molson Coors cycled historic levels in the second quarter of 2023. Underlying earnings per share grew 7.9 percent.

During the call, Chief Financial Officer Tracey Joubert added, “We generated $505 million in Underlying Free Cash Flow for the first half of the year while investing strongly in our business, and we returned $564 million in cash to shareholders through both our dividends and share repurchase program.”

Joubert noted the company accelerated its pace of share repurchases in the second quarter, given that it views the stock as a compelling investment opportunity. Since launching the up to five-year, $2 billion repurchase program last fall, the company has completed approximately 26 percent of the repurchase plan in just the first three quarters.

Core brands remain strong

Hattersley said the company’s three core brands in the U.S. – Coors Light, Miller Lite and Coors Banquet – have retained approximately 80 percent of the peak share gains they earned last year and were collectively up a full 2 share points compared to the second quarter of 2022.

In Canada, Coors Light held its position as the No. 2 beer brand in the country while the Molson family of brands continued to grow volume share in the three months that ended in May and year-to-date. In Ontario, Coors Light and Molson Canadian were the two top-selling beers.

The company’s European portfolio of core power brands saw strong results in the second quarter, Hattersley added. Ozjusko in Croatia gained nearly 2 value share points of the core segment through June. Hattersley also said Caraiman, a new lager from Romania’s Bergenbier S.A., has sold 150,000 hectoliters since March. And in the U.K., Carling’s brand equity continued to benefit from its partnership with the FA Cup.

Above premium portfolio push

In EMEA & APAC, Molson Coors’ above premium portfolio accounted for more than 50 percent of the division’s net brand revenue for the 12 months that ended June 30, primarily due to the success of Madrí Excepcional, which grew double digits in the second quarter and was the No. 3 lager in the U.K. on-premise in terms of value. In all, the business unit’s above premium portfolio is up more than 10 points since 2019.

In the Americas, Molson Coors’ above premium share of net brand revenue was more than 21 percent for the 12 months ended June 30, nearly 2 percentage points more than full-year 2019. This progress was supported by a strong performance in Canada, where Miller Lite and Coors Seltzer have shined.

In Canada, Miller Lite grew net sales revenue by 40 percent in the second quarter, continuing a run that’s seen it grow by double digits for the last four years. Meanwhile, Molson Coors’ Canadian flavor portfolio, led by Coors Seltzer and Simply Spiked, achieved a collective 10 share of the flavor/RTD segment in the second quarter. Molson Coors is the only major brewer in Canada to grow in the flavor segment.

In summary

Hattersley reiterated his confidence in the company’s trajectory, citing the progress and resilience Molson Coors has demonstrated over the past several years and more recently.

“We are a much different company today than we were four years ago and we believe we are certainly stronger than we were just 16 months ago,” he said. “We are confident we have the right strategy to achieve our long-term growth objectives. And we are very pleased with our progress against our strategy."

This article contains forward-looking statements within the meaning of the U.S. federal securities laws – please click here for the full Molson Coors’ forward-looking statement disclaimer.

*Please see Molson Coors’ press release to find important forward-looking statement disclosure and applicable reconciliations of non-GAAP financial measures included in this story.