Molson Coors Beverage : Q1 2026 Molson Coors Beverage Company Earnings Conference Call Presentation

Published: 2026-04-30 09:41:11 ET TAP

Published on 04/30/2026 at 09:41 am EDT

HORIZON 2030

Building to Growth through Accountability, Capability & Discipline

Build a Scaled Portfolio of Strong Brands

GROW NSR AND PROFIT ON CORE POWER BRANDS

DRIVE PROFIT ON OUR VALUE BRANDS

ACCELERATE AP BEER

SCALE IN BEYOND BEER

Strategic Pillars

Drive Commercial Execution Closest to Customers and Consumers

Modernize our Capabilities to Unlock Efficiency and Create Value

Champion Beer and Beer Occasions in a Complex Category and Regulatory Environment

Evolve Our Culture to Drive Ownership and Community Impact

Cost Savings Discipline to Fund the Future

Dynamic Capital Allocation to Fuel Growth

CONSOLIDATED FIRST QUARTER 2026 RESULTS

YoY %

Change**

Q1 2026*

FINANCIAL VOLUME (HL)

14.964

-2.9%

BRAND VOLUME (HL)

15.068

-3.1%

NET SALES REVENUE

$2,351

+0.1%***

UNDERLYING INCOME BEFORE INCOME TAXES

$148

+16.2%***

UNDERLYING EARNINGS PER DILUTED SHARE

$0.62

+24.0%

UNDERLYING FREE CASH FLOW

-$213

+19.5%****

NET DEBT AS OF MARCH 31, 2026

$5,889

+1.1%

DIVIDEND PER SHARE

$0.48

+2.1%

SHARES REPURCHASED

3.371

+225.2%

NET SALES REVENUE CURRENCY IMPACT IN REPORTED RESULTS

$45

* Represents the noted periods in millions unless otherwise specified

** Represents the % change as compared to the prior-year period

*** Represents the % change from the prior-year period and on a constant currency basis

**** Underlying FCF improved $52M YoY from ($265M)

CONSOLIDATED Q1 2026 REVENUE AND VOLUME

Consolidated NSR +0.1%*

Favorable global sales mix and net pricing in the Americas, partly offset by financial volume decline (2.9%)

NET SALES REVENUE (NSR)

(CONSTANT CURRENCY)

+0.1%*

Volume

Price

Mix

Americas NSR +0.4%*

Favorable sales mix (positive brand mix) and net pricing, partly offset by financial volume decline (2.7%) led by U.S. (2.5%) due

to lower share performance, partly offset by U.S. shipment timing**

EMEA&APAC NSR (1.2)%*

Financial volume decline (3.5%) due to lower volume in the U.K. driven by soft market demand and heightened competitive landscape, partly offset by favorable sales mix from premiumization

* Represents the % change from the prior-year period and on a constant currency basis

** Shipment timing trend in the quarter resulted in ~100 basis point positive impact on our Q1 U.S. financial volume

CONSOLIDATED Q1 2026 BRAND VOLUME

BRAND VOLUME % CHANGE

Consolidated brand volume (3.1%)

U.S.*

Canada*

EMEA&APAC

(3.5%)**

(4.0%)

(3.4%)

Americas brand volume down (3.0%)

U.S. brand volume impacted by lower share performance in core and value segments; Canada brand volume also declined on industry softness

EMEA&APAC brand volume (3.4%) due to lower volume in the U.K. driven by soft market demand and heightened competitive landscape

* Both the U.S. and Canada results are part of our Americas segment

** There were equal trading days in the quarter in the U.S. as compared to the respective period in 2025, resulting in no trading day adjustment

CONSOLIDATED Q1 2026 UNDERLYING COGS/HL

UNDERLYING COGS/HL

(CONSTANT CURRENCY)

+5.6%

Q1 2025 Q1 2026

Americas +5.4% due to cost inflation related to materials and manufacturing expenses (including ~$30 million unfavorable impact attributable to Midwest Premium pricing), mix impacts from premiumization and deleverage, partly offset by cost savings

EMEA&APAC +6.5% due to mix impacts of premiumization and direct materials and manufacturing cost inflation

UNDERLYING COGS/HL DRIVERS

Inflation & Other*

Mix

Volume Deleverage

(unfavorable)

Inflation & Other* 340-basis point unfavorable impact largely due to

~$30 million unfavorable impact attributable to Midwest Premium pricing, partly offset by cost savings

Mix 140-basis point unfavorable impact largely due to premiumization in both business units

Volume Deleverage 80-basis point unfavorable impact largely due to volume declines from lower share performance in the U.S. and macro-economic impacts on the consumer in other markets

* "Other" includes depreciation, cost savings and other items, net

Q1 2026 RESULTS

KEY METRICS

Q1 2026*

$1,901

YOY % CHANGE

NET SALES REVENUE +0.4%**

UNDERLYING INCOME BEFORE INCOME TAX

$231

+14.5%**

FINANCIAL VOLUME

11.4

-2.7%

BRAND VOLUME

11.6

-3.0%

PERFORMANCE DRIVERS

Lower MG&A, increased net pricing and favorable mix, partially offset by cost inflation related to materials and manufacturing expenses (including ~$30M of unfavorable impact attributable to MWP pricing), and lower financial volume. Lower MG&A was primarily driven by the cycling ~$30M of integration and transition fees from the Fever-Tree USA, Inc. acquisition in the prior year, cost savings initiatives including lower employee-related costs as a result of our Americas Restructuring Plan and lower marketing expenses, partially offset by costs incurred related to our global modernization ERP system implementation project.

* In millions unless otherwise specified and volumes in hectoliters

** Represents the % change on a constant currency basis

Q1 2026 RESULTS

KEY METRICS

Q1 2026*

$456

YOY % CHANGE

NET SALES REVENUE -1.2%**

UNDERLYING INCOME BEFORE INCOME TAX

-$33

-47.4%**

FINANCIAL VOLUME

3.5

-3.5%

BRAND VOLUME

3.5

-3.4%

PERFORMANCE DRIVERS

Lower financial volume and cost inflation related to materials and manufacturing expenses.

* In millions unless otherwise specified and volumes in hectoliters

** Represents the % change on a constant currency basis

CAPITAL ALLOCATION

INVESTING IN OUR BUSINESS

ANNUAL CAPITAL EXPENDITURES*

$721

$667

$98 **

FY 2024 FY 2025 Q1 2026

Capital Expenditures incurred for Q1 2026 of $98 million**

included various efforts

designed to improve capabilities, and drive efficiencies, cost savings and our sustainability initiatives

* Represents the noted periods in millions

** Differences between capital expenditures incurred ($98M) and cash outflows per 10-Q ($232M) reflect timing of cash payments

CAPITAL ALLOCATION

MAINTAINING LEVERAGE RATIO BELOW 2.5X*

Net Debt increased by ~$485 million since December 31, 2025** ending the quarter at $5.9 billion

Net Debt to Underlying

EBITDA ratio of 2.51x at the end of Q1 2026 approximating the

long-term leverage ratio target of under 2.5x*

NET DEBT TO UNDERLYING EBITDA*

2.51x

2.5x

Target

2.29x

2.47x

Q1 2024 Q1 2025 Q1 2026

* Net Debt to Underlying EBITDA is also referred to as leverage ratio, which 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. Ratios are based on trailing 12-month periods.

** Net Debt as of December 31, 2025, was approximately $5,403 million and was comprised of current portion of long-term debt and short-term borrowings of $2,434 million and long-term debt of $3,865 million less cash and cash equivalents of $896 million.

CAPITAL ALLOCATION

RETURNING CASH TO SHAREHOLDERS

YOY DIVIDEND CHANGE

Quarterly cash dividend of

$0.48 per share,

paid on March 20th

Q1 2024

Q1 2025

Q1 2026

$0.44

$0.47

$0.48

DOLLARS INVESTED

IN SHARE REPURCHASES

Repurchased ~3.4 million shares

for a total of ~$164 million*

Q1 2026

Repurchased ~29.7 million shares or 14.8% of Class B shares outstanding for a total of

~$1,600 million* since the plan was announced in October 2023

* Excludes brokerage commissions and excise taxes

DISCIPLINED COST SAVINGS TO FUND THE FUTURE;

$450M TARGETED OVER 3 YEARS*

Supply Chain

Commercial and Functional Areas

Business Unit

Productivity gains via capital investments, procurement and world class supply chain

Invest in technology to drive efficiency and cost savings

Increasing operational efficiency through business process optimization

Optimize organizational structure to streamline and put resources closer to the consumer; structure in place 1/1/2026

Leverage technology and capabilities to reduce costs and drive return on investment

UK and Central & Eastern Europe (CEE) business transformation to drive margin expansion

Invest in automation and technology to drive cost savings

Organizational changes designed to unlock efficiencies as well as modernize and simplify the segment to fund growth

SAVINGS

are aimed at mitigating inflation and allowing reinvestment in the business

* $450M in 2026-2028 targeted savings

2026 GUIDANCE

REAFFIRMED FULL YEAR OUTLOOK

2026E*

Flat +/-1%

NET SALES REVENUE GROWTH, CONSTANT CURRENCY

UNDERLYING INCOME BEFORE INCOME TAXES GROWTH, CONSTANT CURRENCY

-15% to -18% Decline

UNDERLYING DILUTED EARNINGS PER SHARE GROWTH

-11% to -15% Decline

UNDERLYING FREE CASH FLOW

$1.1B +/- 10%

UNDERLYING DEPRECIATION & AMORTIZATION

$720M +/- 5%

UNDERLYING NET INTEREST EXPENSE

$260M +/- 5%

UNDERLYING EFFECTIVE TAX RATE

22% to 24%

CAPITAL EXPENDITURES INCURRED

$650M +/- 5%

* Note: Net Sales Revenue, Underlying Income before Income Tax, and Underlying Earnings Per Share growth rates are year on year 2026 vs. 2025. We expect to achieve the listed targets for full year 2026 despite the inherent uncertainties that exist with inflationary commodity cost pressures and a softer beer industry.

ATOMIC BRANDS ACQUISITION

Expanding Our U.S. Beyond Beer Portfolio

Expected to contribute ~1% to global NSR on a trailing twelve-month basis*

Expected to be incrementally profitable in year one with nine months in the portfolio

WHY IT FITS

Highly incremental addition to our Beyond Beer portfolio

Natural fit within our U.S. route-to-market

and convenience-led footprint

Strengthens our position in convenience stores and provides a platform to compete in RTDs**

Adds 80 retained sales team members

Adds immediate scale in RTDs** while expanding Beyond Beer execution

* Trailing twelve-month basis as of March 31, 2026

** RTD represents Ready-to-Drink cocktails

KEY 2026 GUIDANCE ASSUMPTIONS AND DRIVERS*

U.S. Beer Industry / Share*

We continue to expect the full year 2026 US industry volume trend to improve versus the -5% we experienced in 2025.

We expect our balance of year share performance to improve versus the first quarter as we continue to execute our strategy.

Price / Mix

We continue to expect U.S. annual pricing of 1% to 2%, in line with historical averages.

We expect favorable mix impacts due to premiumization.

Midwest Premium

On Midwest Premium, we continue to expect the cost of Midwest Premium to be inflationary in each quarter of the year, with the largest increase currently expected in the second quarter.

MG&A**

We continue to expect MG&A to increase versus 2025 for the remainder of the year, with the largest increase expected in the second quarter driven by incentive compensation expenses.

Shipment Timing

In the second quarter, U.S. financial volumes are expected to be between 6% and 9% lower than 2025, trailing anticipated brand volume trends.

Financial volumes are expected to outpace brand volumes in the second half of the year.

Other Assumptions

Included in our guidance, we will recognize 9 months of NSR and profit contribution as we integrate the Monaco brand portfolio into our network. And as with most acquisitions, we will have higher costs in the first year, as we integrate the Monaco business.

* U.S. Industry performance based on internal estimates

** MG&A represents Marketing, general and administrative

MO LSUN

Appendix

MIDWEST PREMIUM SPOT PRICE*

2025 Trend Through 4/24/2026

$1.15

$1.05

$0.95

$0.85

USD / LB

$0.75

$0.65

$0.55

$0.45

$0.35

$0.25

$0.15

$0.24

$1.14 **

Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26

Source: The CME Group

* The Midwest Premium is a component of the cost of aluminum in the U.S.

** Highest recent price noted at $1.14/lb on April 1, 2026

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 (collectively, "Non-GAAP adjustment items"). 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 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.

Disclaimer

Molson Coors Beverage Company published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 13:40 UTC.