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Yahoo
a day ago
- Business
- Yahoo
TAP Q1 Earnings Call: Molson Coors Addresses Macroeconomic Pressures and Strategic Adjustments
Beer company Molson Coors (NYSE:TAP) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 11.3% year on year to $2.3 billion. Its non-GAAP EPS of $0.50 per share was 37.2% below analysts' consensus estimates. Is now the time to buy TAP? Find out in our full research report (it's free). Revenue: $2.3 billion (11.3% year-on-year decline) Adjusted EPS: $0.50 vs analyst expectations of $0.80 (37.2% miss) Operating Margin: 8.1%, down from 12.1% in the same quarter last year Sales Volumes fell 15.6% year on year (5.7% in the same quarter last year) Market Capitalization: $10.68 billion Molson Coors' latest quarter was defined by pronounced declines in sales volumes and operating margins amid a challenging macroeconomic environment. Management attributed the year-on-year drop in financial results to softer consumer demand, ongoing macro volatility, and expected headwinds such as the end of contract brewing agreements and one-time integration costs related to the Fever-Tree partnership. CEO Gavin Hattersley highlighted that the U.S. beer market, in particular, faced larger-than-anticipated declines in consumer confidence, which weighed heavily on consumption trends. While operational disruptions like last year's Fort Worth brewery strike and changes in shipment timing also played a role, Hattersley emphasized, "The magnitude of the impacts of the macroeconomic environment and industry has been much greater so far this year than we had expected." Looking ahead, Molson Coors is adjusting its strategy to navigate ongoing uncertainty in consumer demand and external pressures. Management now expects a low single-digit decline in revenue for the year and is taking steps to reduce capital expenditures and discretionary costs. CFO Tracey Joubert explained that the company's updated outlook is shaped by industry softness and continued macro challenges but is supported by ongoing premiumization initiatives, new product launches, and incremental contributions from partnerships like Fever-Tree and ZOA. Hattersley noted, "These are uncertain times, but we believe we have the right strategy and a healthy balance sheet and strong cash generation to continue to execute it, while continuing to return cash to shareholders." Management cited macroeconomic headwinds, planned operational changes, and a focus on premiumization as primary factors influencing the quarter's results and near-term outlook. Macroeconomic pressures dominate: Management repeatedly referenced the impact of volatile consumer confidence and global economic uncertainty, which led to weaker-than-expected demand across key markets. Hattersley noted that the U.S. beer market experienced a larger decline than anticipated, with the University of Michigan Consumer Sentiment Index dropping sharply during the period. Contract brewing exits weigh on volume: The conclusion of contract brewing agreements with Pabst in the U.S. and Labatt in Canada resulted in a temporary volume headwind that pressured reported sales, though management expects mix and margin benefits in subsequent quarters as the portfolio shifts away from lower-margin contract production. Premiumization and brand investment: Molson Coors continued investing in its core "power brands" (Coors Light, Miller Lite, Coors Banquet) and highlighted growth in above-premium offerings, including the expansion of Peroni and the Blue Moon non-alcoholic line. The company stressed ongoing efforts to capture value from premiumization, aiming for more favorable brand and product mix. Fever-Tree integration and non-alcoholic expansion: The company's recent acquisition of U.S. rights to Fever-Tree and increased stake in ZOA energy drinks were described as strategic moves to expand the non-alcoholic business. Fever-Tree's addition was called 'immediately incremental' to Molson Coors' U.S. business, with management citing significant distribution upside. Disciplined cost management: Facing lower volumes and profitability, management prioritized cost savings by curtailing non-critical discretionary spending and reducing planned capital expenditures by $100 million, postponing projects not directly tied to cost savings or critical growth initiatives. Molson Coors' outlook for the coming quarters centers on cautious revenue expectations, a continued push for premiumization, and disciplined capital allocation in a volatile environment. Consumer demand uncertainty: Management expects near-term demand to remain pressured by macroeconomic factors but is not forecasting the steep declines seen in Q1 to persist throughout the year. Hattersley indicated that improvement is anticipated in the back half of the year, provided economic conditions stabilize. Premiumization and innovation focus: The company is prioritizing further premiumization of its portfolio in North America, EMEA, and APAC, with special attention on the rollout of Peroni, Blue Moon innovations, and the continued momentum of non-alcoholic offerings. Management views these initiatives as vital for margin recovery and long-term growth. Cost control and capital discipline: Molson Coors is tightening control over discretionary expenses and reducing capital expenditures, focusing investment on projects linked to productivity, cost savings, and critical brand support. The company reiterated its commitment to maintaining healthy free cash flow and returning capital to shareholders. In the coming quarters, our analysts will monitor (1) volume trends and consumer demand stabilization in North America and Europe; (2) the pace and effectiveness of premiumization strategies, especially for brands like Peroni, Blue Moon, and Fever-Tree; and (3) the execution of cost control measures and capital allocation discipline. Leadership transition progress and the impact of new product launches will also be key areas to watch. Molson Coors currently trades at a forward P/E ratio of 8.2×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Molson Coors Cuts Outlook on Weak US Beer Demand
(Bloomberg) -- Molson Coors Beverage Co. lowered its full-year guidance as the challenging consumer environment in the US drives shoppers away from the company's products. The Battle Over the Fate of Detroit's Renaissance Center Vail to Borrow Muni Debt to Ease Ski Resort Town Housing Crunch Is Trump's Plan to Reopen the Notorious Alcatraz Prison Realistic? Iceland Plans for a More Volcanic Future As Trump Reshapes Housing Policy, Renters Face Rollback of Rights The Coors Light and Miller Lite manufacturer now expects 2025 underlying diluted earnings per share to increase in the low single digits. It previously said profit would rise in the high single digits. It also projected a low single-digit decline in sales, lowering its previous guidance of a low single-digit increase. The company blamed macroeconomic pressure and weaker consumer demand. It also took a hit from the loss of its Pabst Brewing contract, and this time, international beer sales didn't save the company the way they did last quarter. The beer maker also disclosed that CEO Gavin Hattersley plans to retire by the end of the year. Shares fell 7% at 9:33 a.m. as markets opened in New York. Beer sales fell across the board. Volumes dropped 8% globally, and fell nearly 9% in the US. While the company pointed to macroeconomic pressure and the end of its Pabst contract, beer demand has been slipping for some time. More drinkers are reaching for spirits, canned cocktails, or skipping alcohol altogether, which is a trend Molson Coors has been trying to counter with investments in non-alcoholic drinks and premium brands like Peroni and Madri. It recently took a stake in Fever-Tree and began distributing the mixers in the US. Molson Coors' investment in Fever-Tree is already starting to show results, Hattersley said on a call with investors, calling the early signs 'promising.' 'Every single case we sell of Fever-Tree is incremental to our business,' he said. The company has exclusive rights to distribute the mixers in the US and plans to use its network to scale the brand further. (Updates shares. Adds CEO comments in final paragraph.) US Border Towns Are Being Ravaged by Canada's Furious Boycott Pre-Tariff Car Buying Frenzy Leaves Americans With a Big Debt Problem Made-in-USA Wheelbarrows Promoted by Trump Are Now Made in China Inside the Dizzying Chaos of Running a Freight Business Under Trump Why Juggling IVF With Work Can Be a Career Killer ©2025 Bloomberg L.P. Sign in to access your portfolio
Business Wire
08-05-2025
- Business
- Business Wire
Molson Coors Beverage Company Reports 2025 First Quarter Results
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 2025 first quarter. 2025 FIRST QUARTER FINANCIAL HIGHLIGHTS 1 Net sales decreased 11.3% reported and 10.4% in constant currency. U.S. GAAP income before income taxes decreased 41.1% to $156.3 million. Underlying (Non-GAAP) income before income taxes decreased 49.5% in constant currency to $131.1 million. U.S. GAAP net income attributable to MCBC of $121.0 million, $0.59 per share on a diluted basis. Underlying (Non-GAAP) diluted EPS of $0.50 decreased 47.4%. Updated 2025 full year guidance for the following key financial metrics: Net sales: Low single-digit decline on a constant currency basis, compared to low single-digit increase, previously Underlying (Non-GAAP) income (loss) before income taxes: Low single-digit decline on a constant currency basis, compared to mid single-digit increase, previously Underlying (Non-GAAP) diluted earnings per share: Low single-digit increase compared to high single-digit increase, previously Capital expenditures: $650 million incurred, plus or minus 5% compared to $750 million, plus or minus 5%, previously Underlying (Non-GAAP) free cash flow: $1.3 billion, plus or minus 10% remains unchanged 1 See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency. CEO AND CFO PERSPECTIVES Gavin Hattersley, President and Chief Executive Officer Statement: "The macroeconomic environment and its broad effects on the beer industry and consumer, as well as competitive pressures in EMEA&APAC, impacted our financial results in the first quarter. Additionally, in the quarter we saw expected headwinds, namely cycling the prior year's significant inventory build in the U.S., the discontinuation of our contract brewing arrangements in the Americas, and transition fees related to Fever-Tree. The global macroeconomic environment is volatile. Uncertainty around the effects of geopolitical events and global trade policy, including the impacts on economic growth, consumer confidence and expectations around inflation, and currencies has pressured the beer industry and consumption trends. Given the uncertainty is ongoing, we have adjusted our 2025 full year guidance. In this environment, we remain focused on controlling what we can control. We have continued to make progress against our Acceleration Plan. Our core power brands remain healthy. We made a significant step forward in our premiumization initiatives and added meaningful scale to our nonalcoholic operations with our exclusive U.S. partnership with Fever-Tree, the world's leader of premium carbonated mixers. Further, we have strong plans for all of our key brands as we enter our peak selling season. We are taking actions to help mitigate the short-term challenges in these uncertain times like reducing non-business critical discretionary spend and capital projects while continuing to support the medium and long-term health and growth objectives of the company." Tracey Joubert, Chief Financial Officer Statement: "We remain focused on continuing to improve the efficiency of our business through enhanced capabilities to drive margin expansion. Further, we are committed to protecting and growing our Underlying Free Cash Flow while making prudent capital allocation decisions that support our strategic growth initiatives and allow us to return cash to shareholders through a growing dividend and continued share repurchases." CONSOLIDATED PERFORMANCE - FIRST QUARTER 2025 (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) See Worldwide and Segment 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. Expand QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS FIRST QUARTER 2024 RESULTS) Net sales: The following table highlights the drivers of the change in net sales for the three months ended March 31, 2025, compared to March 31, 2024 (in percentages): Net sales decreased 11.3%, driven by lower financial volumes and unfavorable foreign currency impacts, partially offset by favorable price and sales mix. Net sales decreased 10.4% in constant currency. Financial volumes decreased 14.3%, primarily due to lower shipments in both the Americas and EMEA&APAC segments. Brand volumes decreased 8.0%, including a 7.4% decrease in the Americas as well as a 9.8% decrease in EMEA&APAC. Price and sales mix favorably impacted net sales by 3.9%, primarily due to favorable sales mix as a result of lower contract brewing volume in the Americas segment and increased net pricing. Cost of goods sold ("COGS"): decreased 11.0% on a reported basis, primarily due to lower financial volumes and favorable foreign currency impacts, partially offset by higher cost of goods sold per hectoliter. COGS per hectoliter: increased 3.8% on a reported basis, primarily due to volume deleverage, unfavorable mix driven by lower contract brewing volume in the Americas segment and premiumization as well as cost inflation related to materials and manufacturing expenses, partially offset by cost savings initiatives and favorable changes in our unrealized mark-to-market commodity derivative positions. Underlying (Non-GAAP) COGS per hectoliter: increased 6.1% in constant currency, primarily due to volume deleverage, unfavorable mix driven by lower contract brewing volume in the Americas segment and premiumization as well as cost inflation related to materials and manufacturing expenses, partially offset by cost savings initiatives. Marketing, general & administrative ("MG&A"): decreased 0.2% on a reported basis, primarily due to lower marketing investment and favorable foreign currency impacts, partially offset by higher general and administrative expenses as a result of approximately $30 million of integration and transition fees from the Fevertree USA, Inc. acquisition which are anticipated to be recovered through net sales revenue over future periods. Underlying (Non-GAAP) MG&A: increased 1.2% in constant currency. U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes declined 41.1% on a reported basis, primarily due to lower financial volumes, cost inflation related to materials and manufacturing expenses and higher other operating expense as a result of the planned closure of certain of our U.S. craft breweries and related restructuring costs, partially offset by increased net pricing, favorable mix, favorable fair value adjustment of our Fevertree Drinks plc investment, cost savings initiatives and favorable changes in unrealized mark-to-market commodity derivative positions. Underlying (Non-GAAP) income (loss) before income taxes: Underlying income before income taxes decreased 49.5% in constant currency, primarily due to lower financial volumes as well as cost inflation related to materials and manufacturing expenses, partially offset by favorable mix, increased net pricing and cost savings initiatives. Net income (loss) attributable to MCBC per diluted share: Net income attributable to MCBC per diluted share declined 39.2% primarily due to a decrease in U.S. GAAP income before income taxes, partially offset by a decrease in the weighted average diluted shares outstanding driven by share repurchases. Underlying (Non-GAAP) net income (loss) attributable to MCBC per diluted share: Underlying net income attributable to MCBC per diluted share declined 47.4% primarily due to a decrease in underlying income before income taxes, partially offset by a decrease in the weighted average diluted shares outstanding driven by share repurchases. QUARTERLY SEGMENT HIGHLIGHTS (VERSUS FIRST QUARTER 2024 RESULTS) Americas Segment Overview The following table highlights the Americas segment results for the three months ended March 31, 2025, compared to March 31, 2024: 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. Expand Americas Segment Highlights (Versus First Quarter 2024 Results) Net sales: The following table highlights the drivers of the change in net sales for the three months ended March 31, 2025, compared to March 31, 2024 (in percentages): Net sales decreased 12.3%, driven by lower financial volumes and unfavorable foreign currency impacts, partially offset by favorable price and sales mix. Net sales decreased 11.5% in constant currency. Financial volumes decreased 15.6%, primarily due to lower brand volumes, the cycling of a higher distributor inventory build in the prior year to mitigate the impact of the Fort Worth brewery strike that commenced in mid-February 2024 and an approximate 4% impact from lower contract brewing volume resulting from the exit of contract brewing arrangements in both the U.S. and Canada. Americas brand volumes decreased 7.4%, including an 8.8% decrease in the U.S., driven by the impacts of the macroeconomic environment resulting in industry softness, the cycling of double-digit growth in our core power brands in the prior year and one less trading day in the current quarter. Canada brand volumes decreased 2.7%. Price and sales mix favorably impacted net sales by 4.1%, primarily due to favorable sales mix as a result of lower contract brewing volume and positive brand mix as well as increased net pricing. U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes declined 34.7% on a reported basis, primarily due to lower financial volumes, cost inflation related to materials and manufacturing expenses, unfavorable other operating expense as a result of the planned closure of certain of our U.S. craft breweries and related restructuring costs as well as higher MG&A expense, partially offset by favorable mix, increased net pricing, favorable fair value adjustment of our Fevertree Drinks plc investment and cost savings initiatives. Higher MG&A spend was primarily due to higher general and administrative expenses as a result of approximately $30 million of integration and transition fees from the Fevertree USA, Inc. acquisition which are anticipated to be recovered through net sales revenue over future periods, partially offset by lower marketing investment. Underlying (Non-GAAP) income (loss) before income taxes: Underlying income before income taxes declined 36.8% in constant currency, primarily due to lower financial volumes, cost inflation related to materials and manufacturing expenses and higher MG&A expense, partially offset by favorable mix, increased net pricing and cost savings initiatives. EMEA&APAC Segment Overview The following table highlights the EMEA&APAC segment results for the three months ended March 31, 2025, compared to March 31, 2024: 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. Expand EMEA&APAC Segment Highlights (Versus First Quarter 2024 Results) Net sales: The following table highlights the drivers of the change in net sales for the three months ended March 31, 2025, compared to March 31, 2024 (in percentages): Net sales decreased 6.0%, driven by lower financial volumes and unfavorable foreign currency impacts, partially offset by favorable price and sales mix. Net sales decreased 4.9% in constant currency. Financial and brand volumes decreased 9.7% and 9.8%, respectively, primarily due to lower volumes across all regions driven by soft market demand and heightened competitive landscape. Price and sales mix favorably impacted net sales by 4.8%, primarily due to favorable sales mix driven by higher factored volumes and premiumization as well as increased net pricing. U.S. GAAP income (loss) before income taxes: U.S. GAAP loss before income taxes increased 74.5% on a reported basis primarily due to lower financial volumes, partially offset by lower MG&A expense, increased net pricing and favorable foreign currency impacts. Underlying (Non-GAAP) income (loss) before income taxes: Underlying loss before income taxes increased 22.5% in constant currency, primarily due to lower financial volumes, partially offset by lower MG&A expense and increased net pricing. CASH FLOW AND LIQUIDITY HIGHLIGHTS U.S. GAAP cash from operations: Net cash used in operating activities was $90.7 million for the three months ended March 31, 2025, compared to net cash provided by operating activities of $25.4 million for the three months ended March 31, 2024. The year over year change was primarily due to lower net income adjusted for non-cash items, partially offset by favorable changes in working capital. The favorable changes in working capital were primarily driven by the timing of cash receipts as well as lower payments for prior year annual incentive compensation, partially offset by the $60.6 million payment as final resolution of the Keystone litigation case and timing of inventories. Underlying (Non-GAAP) free cash flow: Cash used of $264.6 million for the three months ended March 31, 2025, represents an increase in cash used of $76.0 million from the prior year, which was primarily due to a decline in operating cash flows and an increase in capital expenditures driven by the timing of capital projects. Debt: Total debt as of March 31, 2025, was $6,237.8 million and cash and cash equivalents totaled $412.7 million, resulting in net debt of $5,825.1 million and a net debt to underlying EBITDA ratio of 2.47x. As of March 31, 2024, our net debt to underlying EBITDA ratio was 2.29x. Dividends: We paid cash dividends of $99.2 million and $96.8 million for the three months ended March 31, 2025 and March 31, 2024, respectively. Share Repurchase Program: We paid $59.6 million and $113.6 million, including brokerage commissions, for share repurchases during the three months ended March 31, 2025 and March 31, 2024, respectively. 2025 OUTLOOK We have adjusted our 2025 guidance for certain key financial metrics due to the impacts of the global macroeconomic environment on the beer industry and consumer trends. While we have included in our guidance our best estimate of some of these factors, including the direct cost impacts from announced tariffs, the indirect effects of these trends are multi-faceted and include inherent uncertainties that could impact our financial performance beyond what is contemplated in our guidance. Net sales: low single-digit decrease versus 2024 on a constant currency basis compared to low single-digit increase versus 2024 on a constant currency basis, previously Underlying (Non-GAAP) income (loss) before income taxes: low single-digit decrease versus 2024 on a constant currency basis compared to mid single-digit increase versus 2024 on a constant currency basis, previously Underlying (Non-GAAP) diluted earnings per share: low single-digit increase versus 2024 compared to high single-digit increase versus 2024, previously Capital expenditures: $650 million incurred, plus or minus 5% compared to $750 million incurred, plus or minus 5%, previously Underlying (Non-GAAP) free cash flow: $1.3 billion, plus or minus 10% Underlying (Non-GAAP) depreciation and amortization: $675 million, plus or minus 5% Underlying (Non-GAAP) net interest expense: $215 million, plus or minus 5% Underlying (Non-GAAP) effective tax rate: in the range of 22% to 24% SUBSEQUENT EVENTS On April 12, 2025, Gavin D.K. Hattersley, President and Chief Executive Officer of the Company and a member of the Board of Directors ("Board"), informed the Company and the Board that he intends to retire from the Company and as a member of the Board, in each case, by December 31, 2025. NOTES Unless otherwise indicated in this release, all $ amounts are in U.S. Dollars, and all quarterly comparative results are for the Company's first quarter ended March 31, 2025, compared to the first quarter ended March 31, 2024. Some numbers may not sum due to rounding. 2025 FIRST 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 2025 first quarter results. The live webcast will be accessible via our website, 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. For more than two centuries, we have 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 Madrí 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. We also have partner brands, such as Simply Spiked, ZOA Energy, Fever-Tree, among others, through license, distribution, partnership and joint venture agreements. 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 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 "2025 Outlook," with respect to, among others, expectations of cost inflation, limited consumer disposable income, consumer preferences, overall volume and market share trends, our competitive position, pricing trends, macroeconomic forces, beverage industry trends, cost reduction strategies, execution of our Acceleration Plan, 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. Condensed Consolidated Statements of Operations (In millions, except per share data) (Unaudited) For the Three Months Ended March 31, 2025 March 31, 2024 Sales $ 2,690.2 $ 3,049.3 Excise taxes (386.1 ) (452.9 ) Net sales 2,304.1 2,596.4 Cost of goods sold (1,453.2 ) (1,632.9 ) Gross profit 850.9 963.5 Marketing, general and administrative expenses (653.2 ) (654.6 ) Other operating income (expense), net (15.9 ) 6.3 Equity income (loss) 4.5 (0.9 ) Operating income (loss) 186.3 314.3 Interest income (expense), net (56.6 ) (48.4 ) Other pension and postretirement benefits (costs), net 3.8 7.4 Other non-operating income (expense), net 22.8 (7.9 ) Income (loss) before income taxes 156.3 265.4 Income tax benefit (expense) (33.2 ) (55.5 ) Net income (loss) 123.1 209.9 Net (income) loss attributable to noncontrolling interests (2.1 ) (2.1 ) Net income (loss) attributable to MCBC $ 121.0 $ 207.8 Basic net income (loss) attributable to MCBC per share $ 0.60 $ 0.98 Diluted net income (loss) attributable to MCBC per share $ 0.59 $ 0.97 Weighted average shares outstanding - basic 203.0 212.7 Weighted average shares outstanding - diluted 204.0 214.2 Dividends per share $ 0.47 $ 0.44 Expand Condensed Consolidated Balance Sheets (In millions, except par value) (Unaudited) As of March 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 412.7 $ 969.3 Trade receivables, net 789.1 693.1 Other receivables, net 119.9 149.8 Inventories, net 870.5 727.8 Other current assets, net 371.4 308.4 Total current assets 2,563.6 2,848.4 Property, plant and equipment, net 4,505.5 4,460.4 Goodwill 5,582.3 5,582.3 Other intangibles, net 12,204.5 12,195.2 Other assets 1,074.6 978.0 Total assets $ 25,930.5 $ 26,064.3 Liabilities and equity Current liabilities Accounts payable and other current liabilities $ 2,782.6 $ 3,013.0 Current portion of long-term debt and short-term borrowings 83.2 32.2 Total current liabilities 2,865.8 3,045.2 Long-term debt 6,154.6 6,113.9 Pension and postretirement benefits 413.9 416.7 Deferred tax liabilities 2,738.3 2,733.4 Other liabilities 306.1 302.4 Total liabilities 12,478.7 12,611.6 Redeemable noncontrolling interest 165.8 168.5 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: 216.1 shares and 215.5 shares, respectively) 2.2 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: 7.1 shares and 7.2 shares, respectively) 267.5 271.1 Paid-in capital 7,222.9 7,223.6 Retained earnings 8,263.0 8,238.0 Accumulated other comprehensive income (loss) (1,325.4 ) (1,362.4 ) Class B common stock held in treasury at cost (25.9 shares and 24.8 shares, respectively) (1,440.7 ) (1,380.8 ) Total Molson Coors Beverage Company stockholders' equity 13,090.3 13,092.4 Noncontrolling interests 195.7 191.8 Total equity 13,286.0 13,284.2 Total liabilities and equity $ 25,930.5 $ 26,064.3 Expand CASH FLOW STATEMENTS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (In millions) (Unaudited) For the Three Months Ended March 31, 2025 March 31, 2024 Cash flows from operating activities Net income (loss) including noncontrolling interests $ 123.1 $ 209.9 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation and amortization 180.3 169.0 Amortization of debt issuance costs and discounts 1.3 1.3 Share-based compensation 11.9 12.8 (Gain) loss on sale or impairment of property, plant, equipment and other assets, net (8.2 ) (5.8 ) Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net (20.1 ) 6.3 Equity (income) loss (4.5 ) 0.9 Income tax (benefit) expense 33.2 55.5 Income tax (paid) received (10.4 ) (9.3 ) Interest expense, excluding amortization of debt issuance costs and discounts 60.0 54.1 Interest paid (74.2 ) (73.6 ) Other non-cash items, net (28.3 ) — Change in current assets and liabilities (net of impact of business combinations) and other (354.8 ) (395.7 ) Net cash provided by (used in) operating activities (90.7 ) 25.4 Cash flows from investing activities Additions to property, plant and equipment (237.3 ) (214.7 ) Proceeds from sales of property, plant, equipment and other assets 2.3 1.7 Acquisition of business, net of cash acquired (20.8 ) — Other (85.5 ) 0.5 Net cash provided by (used in) investing activities (341.3 ) (212.5 ) Cash flows from financing activities Dividends paid (99.2 ) (96.8 ) Payments for purchases of treasury stock (59.6 ) (113.6 ) Payments on debt and borrowings (3.1 ) (1.6 ) Other 30.7 (4.2 ) Net cash provided by (used in) financing activities (131.2 ) (216.2 ) Effect of foreign exchange rate changes on cash and cash equivalents 6.6 (7.2 ) Net increase (decrease) in cash and cash equivalents (556.6 ) (410.5 ) Balance at beginning of year 969.3 868.9 Balance at end of period $ 412.7 $ 458.4 Expand SUMMARIZED SEGMENT RESULTS (hectoliter volume and $ in millions) (Unaudited) Americas Q1 2025 Q1 2024 Reported % Change FX Impact Constant Currency % Change (3) Net sales (1) $ 1,881.8 $ 2,145.4 (12.3 ) $ (15.9 ) (11.5 ) COGS (1)(2) $ (1,169.9 ) $ (1,315.5 ) 11.1 $ 10.1 10.3 MG&A $ (514.3 ) $ (506.7 ) (1.5 ) $ 6.1 (2.7 ) Income (loss) before income taxes $ 209.3 $ 320.6 (34.7 ) $ (0.2 ) (34.7 ) Underlying income (loss) before income taxes (3) $ 202.8 $ 321.1 (36.8 ) $ (0.2 ) (36.8 ) Financial volume (1)(4) 11.742 13.910 (15.6 ) Brand volume 11.931 12.891 (7.4 ) EMEA&APAC Q1 2025 Q1 2024 Reported % Change FX Impact Constant Currency % Change (3) Net sales (1) $ 427.3 $ 454.7 (6.0 ) $ (5.2 ) (4.9 ) COGS (1)(2) $ (307.0 ) $ (321.6 ) 4.5 $ 4.2 3.2 MG&A $ (138.9 ) $ (147.9 ) 6.1 $ 2.6 4.3 Income (loss) before income taxes $ (19.2 ) $ (11.0 ) (74.5 ) $ 2.0 (92.7 ) Underlying income (loss) before income taxes (3) $ (19.2 ) $ (17.3 ) (11.0 ) $ 2.0 (22.5 ) Financial volume (1)(4) 3.669 4.064 (9.7 ) Brand volume 3.616 4.008 (9.8 ) Unallocated & Eliminations Q1 2025 Q1 2024 Reported % Change FX Impact Constant Currency % Change (3) Net sales $ (5.0 ) $ (3.7 ) (35.1 ) $ — (35.1 ) COGS (2) $ 23.7 $ 4.2 464.3 $ (0.2 ) 469.0 Income (loss) before income taxes $ (33.8 ) $ (44.2 ) 23.5 $ (1.6 ) 27.1 Underlying income (loss) before income taxes (3) $ (52.5 ) $ (45.0 ) (16.7 ) $ (1.4 ) (13.6 ) Financial volume (0.002 ) — N/M Consolidated Q1 2025 Q1 2024 Reported % Change FX Impact Constant Currency % Change (3) Net sales $ 2,304.1 $ 2,596.4 (11.3 ) $ (21.1 ) (10.4 ) COGS $ (1,453.2 ) $ (1,632.9 ) 11.0 $ 14.1 10.1 MG&A $ (653.2 ) $ (654.6 ) 0.2 $ 8.7 (1.1 ) Income (loss) before income taxes $ 156.3 $ 265.4 (41.1 ) $ 0.2 (41.2 ) Underlying income (loss) before income taxes (3) $ 131.1 $ 258.8 (49.3 ) $ 0.4 (49.5 ) Financial volume (4) 15.409 17.974 (14.3 ) Brand volume 15.547 16.899 (8.0 ) Expand 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) The unrealized changes in fair value on our commodity swaps, which are economic hedges, are recorded as COGS within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. (3) Represents income (loss) before taxes adjusted for non-GAAP items. See the Non-GAAP Measures and Reconciliations section for definitions and reconciliations of non-GAAP financial measures including constant currency. (4) Financial volume in hectoliters for the Americas and EMEA&APAC segments excludes royalty volume of 0.673 million hectoliters and 0.220 million hectoliters, respectively, for the three months ended March 31, 2025 and excludes royalty volume of 0.591 million hectoliters and 0.218 million hectoliters, respectively, for the three months ended March 31, 2024. Expand WORLDWIDE AND SEGMENT BRAND AND FINANCIAL VOLUME (in millions of hectoliters) (Unaudited) For the Three Months Ended Americas March 31, 2025 March 31, 2024 Change Financial Volume 11.742 13.910 (15.6)% Contract brewing and wholesale/factored volume (0.385 ) (0.870 ) (55.7)% Royalty volume 0.673 0.591 13.9 % Sales-To-Wholesaler to Sales-To-Retail adjustment and other (1) (0.099 ) (0.740 ) (86.6)% Total Americas Brand Volume 11.931 12.891 (7.4)% EMEA&APAC March 31, 2025 March 31, 2024 Change Financial Volume 3.669 4.064 (9.7)% Contract brewing and wholesale/factored volume (0.273 ) (0.274 ) (0.4)% Royalty volume 0.220 0.218 0.9 % Total EMEA&APAC Brand Volume 3.616 4.008 (9.8)% Consolidated March 31, 2025 March 31, 2024 Change Financial Volume 15.409 17.974 (14.3)% Contract brewing and wholesale/factored volume (0.658 ) (1.144 ) (42.5)% Royalty volume 0.893 0.809 10.4 % Sales-To-Wholesaler to Sales-To-Retail adjustment and other (0.097 ) (0.740 ) (86.9)% Total Worldwide Brand Volume 15.547 16.899 (8.0)% Expand (1) Includes gross inter-segment volumes which are eliminated in the consolidated totals. Expand Worldwide brand volume (or "brand volume" when discussed by segment) reflects owned or actively managed brands sold to unrelated external customers within our geographic markets (net of returns and allowances), royalty volume and our proportionate share of equity investment worldwide brand volume calculated consistently with MCBC owned volume. Financial volume represents owned or actively managed brands sold to unrelated external customers within our geographical markets, net of returns and allowances as well as contract brewing, wholesale non-owned brand volume and company-owned distribution volume. Contract brewing and wholesale/factored volume is included within financial volume, but is removed from worldwide brand volume, as this is non-owned volume for which we do not directly control performance. Factored volume in our EMEA&APAC segment represents the distribution of beer, wine, spirits and other products owned and produced by other companies to the on-premise channel such as bars and restaurants, which is a common arrangement in the U.K. Royalty volume consists of our brands produced and sold by third parties under various license and contract brewing agreements and, because this is owned volume, it is included in worldwide brand volume. Our worldwide brand volume definition also includes an adjustment from Sales-to-Wholesaler ("STW") volume to Sales-to-Retailer ("STR") volume. We believe the brand volume metric is important because, unlike financial volume and STWs, it provides the closest indication of the performance of our brands in relation to market and competitor sales trends. We also utilize COGS per hectoliter, as well as the year over year changes in this metric, as a key metric for analyzing our results. This metric is calculated as COGS per our unaudited condensed consolidated statements of operations divided by financial volume for the respective period. We believe this metric is important and useful for investors and management because it provides an indication of the trends of sales mix and other cost impacts on our COGS. NON-GAAP MEASURES AND RECONCILIATIONS Use of Non-GAAP Measures In addition to financial measures presented on the basis of accounting principles generally accepted in the U.S. ('U.S. GAAP'), we also use non-GAAP financial measures, as listed and defined below, for operational and financial decision making and to assess Company and segment business performance. These non-GAAP measures should be viewed as supplements to (not substitutes for) our results of operations presented under U.S. GAAP. We have provided reconciliations of all historical non-GAAP measures to their nearest U.S. GAAP measure and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. Our management uses these metrics to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the Board of Directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe these measures are used by, and are useful to, investors and other users of our financial statements in evaluating our operating performance. Underlying Income (Loss) before Income Taxes (Closest GAAP Metric: Income (Loss) Before Income Taxes) – Measure of the Company's or segment's income (loss) before income taxes excluding the impact of certain non-GAAP adjustment items from our U.S. GAAP financial statements. Non-GAAP adjustment items include goodwill and other intangible and tangible asset impairments, certain restructuring and integration related costs, unrealized mark-to-market gains and losses, adjustments to the redemption value of mandatorily redeemable noncontrolling interests, potential or incurred losses related to certain litigation accruals and settlements, impacts of settlement charges related to annuity purchases and gains and losses on sales of non-operating assets, among other items included in our U.S. GAAP results that warrant adjustment to arrive at non-GAAP results. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective, involve significant management judgment and can vary substantially from company to company. Underlying COGS (Closest GAAP Metric: COGS) – Measure of the Company's COGS adjusted to exclude non-GAAP adjustment items (as defined above). Non-GAAP adjustment items include, among other items, unrealized mark-to-market gains and losses on our commodity derivative instruments, which are economic hedges, and are recorded through COGS within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivatives without the resulting unrealized mark-to-market volatility. We also use underlying COGS per hectoliter, as well as the year over year change in such metric, as a key metric for analyzing our results. This metric is calculated as underlying COGS divided by financial volume for the respective period. Underlying MG&A (Closest GAAP Metric: MG&A) – Measure of the Company's MG&A expense excluding the impact of certain non-GAAP adjustment items (as defined above). Underlying net interest income (expense), net (Closest GAAP Metric: Interest income (expense), net) – Measure of the Company's net interest expense adjusted to exclude adjustments to the redemption value of mandatorily redeemable noncontrolling interests. Underlying net income (loss) attributable to MCBC (Closest GAAP Metric: Net income (loss) attributable to MCBC) – Measure of net income (loss) attributable to MCBC excluding the impact of income (loss) before income tax non-GAAP adjustment items (as defined above), adjustments to the carrying value of redeemable noncontrolling interests resulting from subsequent changes in the redemption value of such interests, the related tax effects of non-GAAP adjustment items and certain other discrete tax items. Underlying net income (loss) attributable to MCBC per diluted share (also referred to as Underlying Diluted Earnings per Share) (Closest GAAP Metric: Net income (loss) attributable to MCBC per diluted share) – Measure of underlying net income (loss) attributable to MCBC (as defined above) per diluted share. If applicable, a reported net loss attributable to MCBC per diluted share is calculated using the basic share count due to dilutive shares being antidilutive. If underlying net income (loss) attributable to MCBC becomes income excluding the impact of our non-GAAP adjustment items, we include the incremental dilutive shares, using the treasury stock method, into the dilutive shares outstanding. Underlying effective tax rate (Closest GAAP Metric: Effective Tax Rate) – Measure of the Company's effective tax rate excluding the related tax impact of pre-tax non-GAAP adjustment items (as defined above) and certain other discrete tax items. Discrete tax items include certain significant tax audit and prior year reserve adjustments, impact of significant tax legislation and tax rate changes and significant non-recurring and period specific tax items. Underlying free cash flow (Closest GAAP Metric: Net Cash Provided by (Used in) Operating Activities) – Measure of the Company's operating cash flow calculated as Net Cash Provided by (Used In) Operating Activities less Additions to property, plant and equipment and excluding the pre-tax cash flow impact of certain non-GAAP adjustment items (as defined above). We consider underlying free cash flow an important measure of our ability to generate cash, grow our business and enhance shareholder value, driven by core operations and after adjusting for non-GAAP adjustment items, which can vary substantially from company to company depending upon accounting methods, book value of assets and capital structure. Underlying depreciation and amortization (Closest GAAP Metric: Depreciation & Amortization) – Measure of the Company's depreciation and amortization excluding the impact of non-GAAP adjustment items (as defined above). These adjustments primarily consist of accelerated depreciation or amortization taken related to the Company's strategic exit or restructuring activities. Net debt and net debt to underlying earnings before interest, taxes, depreciation, and amortization ("underlying EBITDA") (Closest GAAP Metrics: Cash, Debt, & Net Income (Loss)) – Measure of the Company's leverage calculated as net debt (defined as current portion of long-term debt and short-term borrowings plus long-term debt less cash and cash equivalents) divided by the trailing twelve month underlying EBITDA. Underlying EBITDA is calculated as Net income (loss) excluding Interest expense (income), net, Income tax expense (benefit), depreciation and amortization and the impact of non-GAAP adjustment items (as defined above). Effective January 1, 2025, on a prospective basis, Underlying EBITDA excludes amortization of cloud-based software implementation costs. This measure is not the same as the Company's maximum leverage ratio as defined under its revolving credit facility, which allows for other adjustments in the calculation of net debt to EBITDA. Constant currency - Constant currency is a non-GAAP measure utilized to measure performance, excluding the impact of translational and certain transactional foreign currency movements, and is intended to be indicative of results in local currency. As we operate in various foreign countries where the local currency may strengthen or weaken significantly versus the U.S. dollar or other currencies used in operations, we utilize a constant currency measure as an additional metric to evaluate the underlying performance of each business without consideration of foreign currency movements. We present all percentage changes for net sales, underlying COGS, underlying MG&A and underlying income (loss) before income taxes in constant currency and calculate the impact of foreign exchange by translating our current period local currency results (that also include the impact of the comparable prior period currency hedging activities) at the average exchange rates during the respective period throughout the year used to translate the financial statements in the comparable prior year period. The result is the current period results in U.S. dollars, as if foreign exchange rates had not changed from the prior year period. Additionally, we exclude any transactional foreign currency impacts, reported within the other non-operating income (expense), net line item, from our current period results. Our guidance or long-term targets for any of the measures noted above are also non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from our U.S. GAAP financial statements. When we provide guidance for any of the various non-GAAP metrics described above, we do not provide reconciliations of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our Company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts. (In millions, except per share data) (Unaudited) For the Three Months Ended March 31, 2024 Cost of goods sold Marketing, general and administrative expenses Income (loss) before income taxes Net income (loss) attributable to MCBC Reported (U.S. GAAP) $ (1,632.9 ) $ (654.6 ) $ 265.4 $ 207.8 $ 0.97 Non-GAAP Adjustments (pre-tax) Restructuring — — (0.9 ) (0.9 ) — (Gains) losses on other disposals — — (5.4 ) (5.4 ) (0.03 ) Unrealized mark-to-market (gains) losses (0.8 ) — (0.8 ) (0.8 ) — Other items — 0.5 0.5 0.5 — Tax effects of income before income tax non-GAAP adjustments and discrete tax items — — — 1.6 0.01 Underlying (Non-GAAP) $ (1,633.7 ) $ (654.1 ) $ 258.8 $ 202.8 $ 0.95 Expand (1) During the third quarter of 2024, we made the decision to wind down or sell certain U.S. craft businesses and related facilities within the Americas segment. As a result, we recorded employee-related and asset abandonment charges, including accelerated depreciation in excess of normal depreciation of $17.9 million for the three months ended March 31, 2025. (2) During the three months ended March 31, 2025, we made an investment in Fevertree Drinks plc and hold a minority interest. As a result, we recorded a gain of $25.7 million as an unrealized fair value adjustment. Expand Reconciliation to Underlying Income (Loss) Before Income Taxes by Segment (In millions) (Unaudited) For the Three Months Ended March 31, 2025 Americas EMEA&APAC Unallocated Consolidated U.S. GAAP Income (loss) before income taxes $ 209.3 $ (19.2 ) $ (33.8 ) $ 156.3 Cost of goods sold (1) — — (18.7 ) (18.7 ) Marketing, general & administrative (0.1 ) — — (0.1 ) Other non-GAAP adjustment items (2) (6.4 ) — — (6.4 ) Total non-GAAP adjustment items $ (6.5 ) $ — $ (18.7 ) $ (25.2 ) Underlying income (loss) before income taxes (Non-GAAP) $ 202.8 $ (19.2 ) $ (52.5 ) $ 131.1 Expand For the Three Months Ended March 31, 2024 Americas EMEA&APAC Unallocated Consolidated U.S. GAAP Income (loss) before income taxes $ 320.6 $ (11.0 ) $ (44.2 ) $ 265.4 Cost of goods sold (1) — — (0.8 ) (0.8 ) Marketing, general & administrative 0.5 — — 0.5 Other non-GAAP adjustment items (2) — (6.3 ) — (6.3 ) Total non-GAAP adjustment items $ 0.5 $ (6.3 ) $ (0.8 ) $ (6.6 ) Underlying income (loss) before income taxes (Non-GAAP) $ 321.1 $ (17.3 ) $ (45.0 ) $ 258.8 Expand (1) Reflects changes in our mark-to-market positions on our derivative hedges recorded as COGS within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility. (2) See the Reconciliations by Line Item table for further information on our non-GAAP adjustments. Expand Underlying Depreciation and Amortization Reconciliation (In millions) (Unaudited) For the Three Months Ended March 31, 2025 March 31, 2024 U.S. GAAP depreciation and amortization $ 180.3 $ 169.0 Accelerated depreciation (1) (17.9 ) — Underlying depreciation and amortization (Non-GAAP) $ 162.4 $ 169.0 Expand (1) During the third quarter of 2024, we made the decision to wind down or sell certain U.S. craft businesses and related facilities within the Americas segment. As a result, we recorded employee-related and asset abandonment charges, including accelerated depreciation in excess of normal depreciation of $17.9 million for the three months ended March 31, 2025. Expand Underlying Free Cash Flow (In millions) (Unaudited) For the Three Months Ended March 31, 2025 March 31, 2024 U.S. GAAP Net Cash Provided by (Used In) Operating Activities $ (90.7 ) $ 25.4 Additions to property, plant and equipment, net (1) (237.3 ) (214.7 ) Cash impact of non-GAAP adjustment items (2) 63.4 0.7 Underlying Free Cash Flow (Non-GAAP) $ (264.6 ) $ (188.6 ) Expand (1) Included in net cash provided by (used in) investing activities. (2) Included in net cash provided by (used in) operating activities and reflects the $60.6 million payment as final resolution of the Keystone litigation case paid during the three months ended March 31, 2025. Additionally, includes costs paid for restructuring activities for the three months ended March 31, 2025 and March 31, 2024. Expand Net Debt and Net Debt to Underlying EBITDA Ratio (In millions except net debt to underlying EBITDA ratio) (Unaudited) As of March 31, 2025 March 31, 2024 U.S. GAAP Current portion of long-term debt and short-term borrowings $ 83.2 $ 905.5 Add: Long-term debt 6,154.6 5,312.2 Less: Cash and cash equivalents 412.7 458.4 Net debt 5,825.1 $ 5,759.3 Q1 Underlying EBITDA 353.3 476.2 Q4 Underlying EBITDA 558.5 566.1 Q3 Underlying EBITDA 692.3 742.9 Q2 Underlying EBITDA 750.1 725.2 Non-GAAP Underlying EBITDA (1) $ 2,354.2 $ 2,510.4 Net debt to underlying EBITDA ratio 2.47 2.29 Expand (1) Represents underlying EBITDA on a trailing twelve month basis. Expand Underlying EBITDA Reconciliation (In millions) (Unaudited) For the Three Months Ended March 31, 2025 March 31, 2024 U.S. GAAP Net income (loss) 123.1 209.9 Interest expense (income), net 56.6 48.4 Income tax expense (benefit) 33.2 55.5 Depreciation and amortization 183.5 169.0 Non-GAAP adjustments to arrive at underlying EBITDA (1) (43.1 ) (6.6 ) Underlying EBITDA (Non-GAAP) $ 353.3 $ 476.2 Expand (1) Includes pre-tax non-GAAP adjustments to Net income (loss) as described in other non-GAAP reconciliation tables above excluding non-GAAP adjustments to interest expense (income), net and depreciation and amortization (including amortization of cloud-based software implementation costs). See the (i) Reconciliations to Nearest U.S. GAAP Measures by Line Item, (ii) Underlying Depreciation and Amortization Reconciliation and (iii) Underlying Net Interest Income (Expense), net Reconciliation tables for further information on our non-GAAP adjustments. Expand
Irish Independent
30-04-2025
- General
- Irish Independent
Lashing of ginger beer! We taste-test five of the best on the Irish market right now
Our drinks expert delves into the history of ginger beers and ales, and tries out some of the well-known brands This week's comparative tasting of alcoholic ginger beer was inspired in part by the rebranding roll-out of Kinnegar's Jackrabbit ginger beer, with its new label and pre-summer marketing push. I enjoyed it on draught one evening in a pub served with a dash of bitters for extra spicing, but was curious to try it straight up and side by side with some other examples from both Ireland and England. I also wanted to take a little deep dive into the history of ginger beer to get my head around it. Like many Irish people, I suspect, I didn't have a firm grasp on what this beverage was, beyond vaguely associating it with England. (I was sad to learn that Enid Blyton's Famous Five never were served lashings of ginger beer, or at least not in her original stories.) So what's ginger beer got to do with beer? Is it even alcoholic in its natural traditional state? And in its non-alcoholic form, what's the difference between ginger beer and ginger ale? All five of today's ginger beers were wildly different from one another in everything but their alcohol content (4pc ABV). They ranged in colour from translucent to cloudy, pale lemon through to rich amber, and in character from distinctly sour to dark, sweet spice notes. The history itself is a little cloudy too. Most accounts agree that ginger beer was developed commercially in 18th-century England. As a brewed drink based on naturally fermented fresh ginger and sugar, it contained small quantities of alcohol of at least 2-3pc ABV. However, a fascinating article from the USA's Federation of Historical Bottle Collectors claims that the alcohol content could be up to 11pc ABV. This alcohol acted as a preservative for the export of English ginger beer to the colonies and Americas, traditionally in glazed, corked and wired ceramic containers that kept the natural carbonation intact too. A combination of excise duty in the UK and Prohibition in the USA saw ginger beer evolve into a largely non-alcoholic beverage — to such a degree that today's UK examples are labelled 'alcoholic ginger beer'. Of course, there are also excellent non-alcoholic ginger beers out there, and some very good ginger ales, which are lighter in style and based on ginger extract rather than fermented root ginger. (Fever-Tree produce both styles.) As a mixer, use ginger ale in a Jameson & Ginger, where the lighter, sweeter, softer style helps to foreground the whiskey; use (alcohol-free) ginger beer in a Moscow Mule, where the vodka and fresh lime can handle the robust spice of this ginger-forward option. Adding Angostura bitters to either style will help to ramp up the warm spices. Pick of the week Hopfully 'Ollie' Ginger Beer, Waterford 4pc, €3.90-4.40 (440ml can) If you like sour beers or refreshing sodas that lean to the sharper side, this could be the taste of your summer: cloudy and pale lemon in colour, with spicy aromas of dried ginger lifting fruity undertones, it is super tangy, clean and refreshing — and very moreish — with distinctive ginger juice tang on its well-balanced finish. Look out too for their limited-edition yuzu ginger beer for elevated sharpness and a more fragrant citrus character. Pair with creamy curries. Selected independents, Craft Central, Kinnegar Jackrabbit Premium Ginger Beer, Donegal 4pc, €3.99 (50cl bottle) This lager-coloured, naturally carbonated, unfiltered ginger beer is brewed with yeast and barley as well as ginger, raw cane sugar and pear; evoking ginger snap biscuits and rhubarb and ginger jam, it is full-bodied and soft-edged with a warming ginger finish. Go fried fish and chips. Molloy's, SuperValu, O'Briens and independents nationwide Zingibeer Irish Ginger Beer, Dublin 4pc, €3.75-4.50 (50cl bottle) ADVERTISEMENT Learn more This former home brewers' lockdown project from father and daughter Kevin and Rachel Byrne fast became an award-winning success. Brewed from fresh Malaysian ginger and lemon zest, it is pale, clean, dry and not unlike a hard seltzer. Try with steamed mussels. Molloy's, Tesco, Spar, Eurospar, Fresh, O'Briens, Joyce's, Carry Out and independents (see Hollows & Fentimans All Natural Alcoholic Ginger Beer, Yorkshire 4pc, €4.30-5.75 (50cl bottle) 'Botanically brewed since 1905', from a recipe secured in lieu of an unpaid loan; featuring ginger root, water, sugar, pear juice, yeast and a 14-day process. Bold and sweet, like crystallised ginger and honey lozenges; try over ice with a chicken pie. Molloy's, Dunnes Stores, Martins, McHughs and other independents Crabbie's Original Alcoholic Ginger Beer, UK 4pc, €3.10-3.60 (50cl bottle) The darkest in colour and flavour, and spiciest in ginger heat, with no ingredients on the label but a promise of 'exotic spices' and 'real ginger' that has been 'steeped for six weeks', this has cola-like notes with sweet spices and sticky gingerbread character. Try with a rich beef stew. Molloy's, Tesco, Dunnes and selected independents;
Telegraph
04-04-2025
- Business
- Telegraph
Inflation made this success story go flat – but the future looks promising
Questor is The Telegraph's stockpicking column, helping you decode the markets and offering insights on where to invest. Consumer-focused stocks have endured a torrid time over recent years. Rampant inflation and fast-paced interest rate rises have combined to put household budgets under significant pressure. This has encouraged consumers to cut back on discretionary items and trade down to cheaper own-brand products. It is therefore unsurprising that shares in beverages company Fever-Tree have slumped since being added to our Aim portfolio in October 2023. They have fallen by 19pc, versus a 1pc decline for the FTSE Aim All-Share index, as tough trading conditions have weighed on the company's financial performance. Indeed, the firm's recently released annual results showed that sales rose by just 3pc year on year. However, lower materials costs and falling freight rates meant that the company's gross profit margin rose by 540 basis points to 37.5pc. This caused the firm's earnings per share to increase by a far more impressive 82pc versus the prior year. Further profit growth, however, is not anticipated in the current year. In fact, Fever-Tree is forecast to post a low single digit increase in revenue and a 6pc decline in earnings this year as its dominant US division, which accounts for 35pc of sales, transitions to a long-term strategic partnership with Molson Coors. Outside America, the company expects to deliver further profit margin growth this year as it benefits from a strong competitive position. Indeed, during 2024, the firm gained market share across all of its key regions. This suggests it is becoming increasingly well placed to capitalise on an improving consumer outlook. Although inflation remains above target in the US, Europe and the UK, which together account for 91pc of the company's sales, it is widely expected to fall to central bank targets over the medium term. This should provide scope for further interest rate cuts that, alongside modest price rises, prompt improved spending power among consumers. In turn, this is likely to have a positive impact on demand for premium discretionary products such as those sold by Fever-Tree. An increasingly upbeat industry outlook is reflected in the company's financial forecasts for next year. It is expected to post a 19pc rise in earnings per share in 2026, with investors already beginning to factor in a rapidly growing bottom line. The company's shares have risen by 16pc since the start of the year and now trade on a price-to-earnings (P/E) ratio of 27.8. While this is clearly expensive, especially relative to many UK-listed smaller companies, it does not represent an overvaluation in Questor's view. The prospect of further rapid profit growth amid a buoyant long-term consumer outlook means the stock is worthy of a premium valuation vis-à-vis the wider stock market. Furthermore, Fever-Tree has solid fundamentals that help to justify its lofty market valuation. For example, its net cash position increased from around £45m to nearly £84m last year. This suggests it has the financial means to overcome further consumer-related challenges in the short run. In addition, a return on equity figure of 10pc, achieved despite the use of very modest leverage, highlights its competitive advantage and status as a high-quality business that enjoys significant brand loyalty. Separately, the firm is making progress in diversifying its product portfolio. Indeed, 45pc of the company's sales are now derived from products other than tonic water. This is five percentage points greater than in the previous year and equates to a more reliable long-term financial outlook as consumer tastes inevitably change. In the short run, the company's share price performance could be boosted by a £100m buyback programme. However, its market valuation is likely to remain relatively volatile as above-target inflation and a restrictive monetary policy take time to pass. And with the company viewing 2025 as a transitional year as its partnership with Molson Coors is implemented, Questor would be unsurprised if recent share price growth fails to be replicated over the coming months. Still, Fever-Tree's long-term prospects remain sound. Its growing market share means it is well placed to take advantage of an improving industry outlook as consumer demand for premium discretionary products increases. And, while its P/E ratio is undoubtedly high, the company's solid fundamentals and upbeat earnings growth outlook mean it remains a worthwhile purchase.
