Molson Coors’ gains at the expense of competitor Anheuser-Busch InBev’s losses continued to show in the company’s fourth quarter and full-year earnings reports.
Molson Coors’ Q4 depletions (sales to retailers) in the Americas region increased +6.7%, including an +8.5% increase in the U.S., driven by double-digit gains for Coors Light, Miller Lite and Coors Banquet, the company reported. Volume in Canada increased +0.7%, while Latin America volume declined -5%.
The company’s Q4 net sales in the Americas region increased +4.7%, while net sales per hectoliter increased +2.4%. Financial volume in the Americas increased +2.2%, which the company attributed to increased depletions in the U.S. driven by the company’s core offerings. This was partially offset by shipment timing and lower contract brewing volume due to the expiration of the company’s contract with Pabst Brewing.
The U.S. increases were driven “by the continued shifts in consumer purchasing behavior” within the premium beer segment due to the conservative-led boycott of the Bud Light brand.
For full-year 2023, Molson Coors’ net sales increased +9.4% to $11.7 billion, while financial volumes increased +1.8% driven by increases in the Americas business. Global brand volumes increased +2.2%, driven by a 4.4% increase in the Americas region.
The company noted “favorable price and sales mix,” which increased +7.5%, and net sales per hectoliter growing +7.3% for the year. Those gains were driven by price increases, “including the rollover benefit in the first three quarters due to taking several price increases in the prior year, as well as favorable sales mix” due to higher volumes in the Americas.
In Q4, Molson Coors’ global net sales increased +6.1%, to $2.79 billion, while depletions increased +4.3%.
Molson Coors CEO Gavin Hatterlsey called out that this was the second consecutive year of delivering both top- and bottom-line growth.
“But more than that, last year we achieved the highest reported top and bottom-line figures in the history of our company,” he continued in the release.
In a separate note, Molson Coors chief communications and corporate affairs officer Adam Collins wrote that the company’s underlying pre-tax income growth (+37%) increased “so much that it finished above where we thought it would be at the end of 2028. Molson Coors delivered six years of profit growth in just one year.”
Collins offered a few additional highlights, including the company’s top five global brands combined selling more than 2 million more hectoliters than in 2022, which he said is “the equivalent of adding a brand the size of Blue Moon to our portfolio.”
The company also gained more share in the on-premise channel in the U.S. and Canada in 2023 than any other brewer, Collins wrote.
Outside of its core beer brands, Collins wrote that the Simply Spiked FMB “more than doubled its full-year volume” in the U.S.
Looking ahead to 2024, Molson Coors offered the following full-year guidance:
- Net sales grow in the “low-single digit” compared to 2023;
- Underlying earnings per share to increase “mid single-digit” year-over-year;
- Capital expenditures of $750 million, plus or minus 5%;
- Underlying free cash flow of $1.2 billion, plus or minus 10%.