Molson Coors Delivers Double-Digit Q4 Top-Line and Bottom-Line Growth
Company Issues 2022 Guidance for Top and Bottom-Line Growth, Continuing to Deliver on its Revitalization Plan and Premiumizing its Portfolio
Board of Directors Raises Quarterly Dividend 12% to $0.38 per share
GOLDEN, Colo. & MONTREAL--(BUSINESS WIRE)--February 23, 2022--Molson Coors Beverage Company (NYSE: TAP, TAP.A; TSX: TPX.A, TPX.B) today reported results for the 2021 fourth quarter and full year.
As of December 31, 2021, we changed the names of our reporting segments to the Americas and EMEA&APAC segments (formerly named the North America segment and Europe segment, respectively) to better reflect the geographic locations encompassed within the reportable segments. This change to our segment names had no impact on the composition of our segments, our financial position, results of operations, cash flow or segment level results previously reported.
2021 FOURTH QUARTER FINANCIAL HIGHLIGHTS
2021 FULL YEAR FINANCIAL HIGHLIGHTS
CEO AND CFO PERSPECTIVES
This past year, we made significant progress against our revitalization plan - from growing our top line, to premiumizing our global portfolio to a record level, to making significant investments in our capabilities. We accomplished this against a challenging inflationary environment and continued impact from the coronavirus pandemic, including returning restrictions with the Omicron variant in the fourth quarter. Key highlights included revenue growth of Coors Light and Miller Lite and our successful ventures beyond beer, which are a component of our Emerging Growth division that continues to track ahead of our $1 billion annual revenue target for this business by 2023. We succeeded in emerging markets, like Latin America, and saw strong performances in our more traditional markets, like Canada. We also continued to make investments to increase our global hard seltzer production capacity with expansions in Canada and the U.K. as we support our rapidly-growing global hard seltzer portfolio.
Gavin Hattersley, President and Chief Executive Officer Statement:
“This year, we grew the top-line for the first time in a decade, our two biggest brands each grew net sales and we now have a larger global above premium portfolio than ever before. These were all goals of the revitalization plan, against which we continue to make tremendous progress. While we’re proud of the steps we’ve taken, we’re even more excited about where we can go from here, having established a strong foundation for 2022 successes and beyond.”
Tracey Joubert, Chief Financial Officer Statement:
“Our progress in 2021 is clear. For the year, we achieved our top-line guidance of mid single-digit growth, delivered strong free cash flow, further reduced our leverage ratio, and returned cash to shareholders all despite the global macro inflationary challenges. Building off our strong foundation, we have issued fiscal 2022 guidance for both top and bottom-line growth, which underscores our progress against our revitalization plan goals.”
CONSOLIDATED PERFORMANCE - FOURTH QUARTER AND FULL YEAR 2021 |
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For the three months ended |
||||||||||||||||
($ in millions, except per share data) (Unaudited) |
December 31, |
|
December 31, |
|
Reported |
|
Foreign |
|
Constant |
||||||||
Net sales |
$ |
2,619.2 |
|
$ |
2,294.3 |
|
|
14.2 |
% |
|
$ |
9.6 |
|
13.7 |
% |
||
U.S. GAAP Net income (loss)(1) |
$ |
80.0 |
|
|
$ |
(1,369.8 |
) |
|
N/M |
|
|
|
|
|
|||
Per diluted share |
$ |
0.37 |
|
|
$ |
(6.32 |
) |
|
N/M |
|
|
|
|
|
|||
Underlying Net income (loss)(2) |
$ |
176.2 |
|
|
$ |
86.6 |
|
|
103.5 |
% |
|
|
|
|
|||
Per diluted share |
$ |
0.81 |
|
|
$ |
0.40 |
|
|
102.5 |
% |
|
|
|
|
|||
Underlying EBITDA(2) |
$ |
457.3 |
|
|
$ |
375.1 |
|
|
21.9 |
% |
|
$ |
— |
|
|
21.9 |
% |
|
For the years ended |
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($ in millions, except per share data) (Unaudited) |
December 31, |
|
December 31, |
|
Reported |
|
Foreign |
|
Constant |
||||||||
Net sales |
$ |
10,279.7 |
|
$ |
9,654.0 |
|
|
6.5 |
% |
|
$ |
173.3 |
|
4.7 |
% |
||
U.S. GAAP Net income (loss)(1) |
$ |
1,005.7 |
|
|
$ |
(949.0 |
) |
|
N/M |
|
|
|
|
|
|||
Per diluted share |
$ |
4.62 |
|
|
$ |
(4.38 |
) |
|
N/M |
|
|
|
|
|
|||
Underlying Net income (loss)(2) |
$ |
902.1 |
|
|
$ |
851.7 |
|
|
5.9 |
% |
|
|
|
|
|||
Per diluted share |
$ |
4.15 |
|
|
$ |
3.92 |
|
|
5.9 |
% |
|
|
|
|
|||
Underlying EBITDA(2) |
$ |
2,077.7 |
|
|
$ |
2,132.1 |
|
|
(2.6 |
)% |
|
$ |
21.2 |
|
|
(3.5 |
)% |
N/M = Not meaningful |
||
(1) |
Net income (loss) attributable to MCBC. |
|
(2) |
Represents net income (loss) attributable to MCBC and EBITDA adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency. |
NET SALES DRIVERS |
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For the three months ended December 31, 2021 |
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Reported |
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Percent change versus comparable prior year period |
Financial |
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Price and |
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Currency |
|
Net Sales |
|
Net Sales per |
|
Brand Volume |
||||||
Consolidated |
7.4 |
% |
|
6.3 |
% |
|
0.5 |
% |
|
14.2 |
% |
|
3.8 |
% |
|
2.3 |
% |
Americas |
3.6 |
% |
|
3.5 |
% |
|
0.5 |
% |
|
7.6 |
% |
|
2.9 |
% |
|
(1.8 |
)% |
EMEA&APAC |
21.4 |
% |
|
35.1 |
% |
|
(0.1 |
)% |
|
56.4 |
% |
|
17.4 |
% |
|
15.7 |
% |
|
For the year ended December 31, 2021 |
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Reported |
|
|
||||||||||||||
Percent change versus comparable prior year period |
Financial |
|
Price and |
|
Currency |
|
Net Sales |
|
Net Sales per |
|
Brand Volume |
||||||
Consolidated |
(0.5 |
)% |
|
5.2 |
% |
|
1.8 |
% |
|
6.5 |
% |
|
3.8 |
% |
|
(1.7 |
)% |
Americas |
(2.0 |
)% |
|
4.0 |
% |
|
1.0 |
% |
|
3.0 |
% |
|
3.2 |
% |
|
(3.2 |
)% |
EMEA&APAC |
3.9 |
% |
|
15.7 |
% |
|
6.3 |
% |
|
25.9 |
% |
|
10.1 |
% |
|
3.0 |
% |
(1) |
Our net sales per hectoliter performance discussions are presented on a brand volume ("BV") basis, which reflects owned or actively managed brand volume, along with royalty volume, in the denominator, as well as the financial impact of these sales (in constant currency) in the numerator, unless otherwise indicated. |
QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS FOURTH QUARTER 2020 RESULTS)
QUARTERLY SEGMENT HIGHLIGHTS (VERSUS FOURTH QUARTER 2020 RESULTS)
Americas Segment
EMEA&APAC Segment
FULL YEAR CONSOLIDATED HIGHLIGHTS (VERSUS 2020 RESULTS)
CASH FLOW AND LIQUIDITY HIGHLIGHTS
OTHER RESULTS
Tax Rates Table |
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(Unaudited) |
For the three months ended |
For the years ended |
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|
December 31, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
||||
U.S. GAAP effective tax rate |
24.8 |
% |
|
(2.7 |
%) |
|
18.6 |
% |
|
(46.9 |
%) |
Underlying effective tax rate(1) |
17.1 |
% |
|
23.5 |
% |
|
13.8 |
% |
|
18.7 |
% |
(1) |
See the Appendix for definitions and reconciliations of the non-GAAP financial measures. |
Special and Other Non-Core Items
The following special and other non-core items have been excluded from underlying results. See the Appendix for reconciliations of non-GAAP financial measures.
2022 OUTLOOK
Full Year Guidance
We expect to achieve the following targets for full year 2022 despite the inherent uncertainties that exist with the ongoing coronavirus pandemic and the global supply chain:
Capital Allocation Initiatives
On February 22, 2022, our Board of Directors declared a dividend on its Class A and Class B common shares of $0.38 per share, payable March 18, 2022, to shareholders of record on March 7, 2022. Similarly, the Board of Directors of Molson Coors Canada Inc., an indirect wholly owned subsidiary of the company, on February 22, 2022, declared the Canadian dollar equivalent of the dividend declared on Molson Coors stock payable on March 18, 2022, to its Class A and Class B exchangeable shareholders of record on March 7, 2022.
On February 17, 2022, our Board of Directors approved a share repurchase program authorizing the Company to purchase up to an aggregate of $200 million of our Company's Class B common stock through March 31, 2026, with repurchases primarily intended to offset annual employee equity award grants.
NOTES
Unless otherwise indicated in this release, all $ amounts are in U.S. Dollars, and all comparative results are for the Company’s fourth quarter or full year ended December 31, 2021, compared to the fourth quarter or full year ended December 31, 2020. Some numbers may not sum due to rounding.
2021 FOURTH QUARTER INVESTOR CONFERENCE CALL
Molson Coors Beverage Company will conduct an earnings conference call with financial analysts and investors at 11:00 a.m. Eastern Time today to discuss the Company’s 2021 fourth quarter and full year results. The live webcast will be accessible via our website, ir.molsoncoors.com. An online replay of the webcast will be available until 11:59 p.m. Eastern Time on May 2, 2022. The Company will post this release and related financial statements on its website today.
OVERVIEW OF MOLSON COORS
For over two centuries Molson Coors has been brewing beverages that unite people to celebrate all life’s moments. From Coors Light, Miller Lite, Molson Canadian, Carling, and Staropramen to Coors Banquet, Blue Moon Belgian White, Blue Moon LightSky, Vizzy, Leinenkugel’s Summer Shandy, Creemore Springs, Hop Valley and more, Molson Coors produces many beloved and iconic beer brands. While the company’s history is rooted in beer, Molson Coors offers a modern portfolio that expands beyond the beer aisle as well.
Our reporting segments include: Americas, operating in the U.S., Canada and various countries in Latin and South America; and EMEA&APAC, operating in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the U.K., various other European countries, and certain countries within Africa and Asia Pacific. In addition to our reporting segments, we also have certain items that are unallocated to our reporting segments and reported as "Unallocated", which primarily include financing related costs and impacts of other treasury-related activities. Our Environmental, Social and Governance ("ESG") strategy is focused on People and Planet with a strong commitment to raising industry standards and leaving a positive imprint on our employees, consumers, communities, and the environment. To learn more about Molson Coors Beverage Company, visit molsoncoors.com, MolsonCoorsOurImprint.com or on Twitter through @MolsonCoors.
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 “believe,” "aims," “expect,” “intend,” “anticipate,” “project,” “will,” “outlook,” and similar expressions identify forward-looking statements, which generally are not historic in nature. Statements that refer to projections of our future financial performance, our anticipated results, cost savings 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 heading "2022 Outlook," expectations regarding the impacts of the coronavirus pandemic on our operations, liquidity, financial condition and financial results, expectations regarding future dividends, overall volume trends, consumer preferences, pricing trends, industry forces, cost reduction strategies, including our revitalization plan, expectations of cost inflation, anticipated results, expectations for funding future capital expenditures and operations, debt service capabilities, timing and amounts of debt and leverage levels, shipment levels and profitability, market share and the sufficiency of capital resources. 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”). These factors include, among others, the impact of the coronavirus pandemic, the impact of increased competition resulting from further consolidation of brewers, competitive pricing and product pressures; health of the beer industry and our brands in our markets; economic conditions in our markets; additional impairment charges; changes in our supply chain system; availability or increase in the cost of packaging materials; success of our joint ventures; risks relating to operations in developing and emerging markets; changes in legal and regulatory requirements, including the regulation of distribution systems; fluctuations in foreign currency exchange rates; increase in the cost of commodities used in the business; the impact of climate change and the availability and quality of water; loss or closure of a major brewery or other key facility; a breach of our information systems; our reliance on third party service providers and internal and outsourced systems; our ability to implement our strategic initiatives, including executing and realizing cost savings; pension plan and other post-retirement benefit costs; failure to comply with debt covenants or deterioration in our credit rating; our ability to maintain good labor relations; our ability to maintain brand image, reputation and product quality; unfavorable legal or regulatory outcomes affecting the business; and other 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 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.
APPENDIX
STATEMENTS OF OPERATIONS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Operations |
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(In millions, except per share data) (Unaudited) |
For the three months ended |
|
For the years ended |
||||||||||||
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
||||||||
Financial volume in hectoliters |
|
21.137 |
|
|
|
19.676 |
|
|
|
84.028 |
|
|
|
84.479 |
|
Sales |
$ |
3,194.4 |
|
|
$ |
2,777.8 |
|
|
$ |
12,449.9 |
|
|
$ |
11,723.8 |
|
Excise taxes |
|
(575.2 |
) |
|
|
(483.5 |
) |
|
|
(2,170.2 |
) |
|
|
(2,069.8 |
) |
Net sales |
|
2,619.2 |
|
|
|
2,294.3 |
|
|
|
10,279.7 |
|
|
|
9,654.0 |
|
Cost of goods sold |
|
(1,761.9 |
) |
|
|
(1,399.1 |
) |
|
|
(6,226.3 |
) |
|
|
(5,885.7 |
) |
Gross profit |
|
857.3 |
|
|
|
895.2 |
|
|
|
4,053.4 |
|
|
|
3,768.3 |
|
Marketing, general and administrative expenses |
|
(665.1 |
) |
|
|
(648.3 |
) |
|
|
(2,554.5 |
) |
|
|
(2,437.0 |
) |
Special items, net |
|
(27.2 |
) |
|
|
(1,529.6 |
) |
|
|
(44.5 |
) |
|
|
(1,740.2 |
) |
Operating income (loss) |
|
165.0 |
|
|
|
(1,282.7 |
) |
|
|
1,454.4 |
|
|
|
(408.9 |
) |
Interest income (expense), net |
|
(61.8 |
) |
|
|
(64.8 |
) |
|
|
(258.3 |
) |
|
|
(271.3 |
) |
Other pension and postretirement benefits (costs), net |
|
7.5 |
|
|
|
7.6 |
|
|
|
46.4 |
|
|
|
30.3 |
|
Other income (expense), net |
|
(1.2 |
) |
|
|
2.6 |
|
|
|
(3.5 |
) |
|
|
6.0 |
|
Income (loss) before income taxes |
|
109.5 |
|
|
|
(1,337.3 |
) |
|
|
1,239.0 |
|
|
|
(643.9 |
) |
Income tax benefit (expense) |
|
(27.1 |
) |
|
|
(36.6 |
) |
|
|
(230.5 |
) |
|
|
(301.8 |
) |
Net income (loss) |
|
82.4 |
|
|
|
(1,373.9 |
) |
|
|
1,008.5 |
|
|
|
(945.7 |
) |
Net (income) loss attributable to noncontrolling interests |
|
(2.4 |
) |
|
|
4.1 |
|
|
|
(2.8 |
) |
|
|
(3.3 |
) |
Net income (loss) attributable to MCBC |
$ |
80.0 |
|
|
$ |
(1,369.8 |
) |
|
$ |
1,005.7 |
|
|
$ |
(949.0 |
) |
|
|
|
|
|
|
|
|
||||||||
Basic net income (loss) attributable to MCBC per share: |
$ |
0.37 |
|
|
$ |
(6.32 |
) |
|
$ |
4.63 |
|
|
$ |
(4.38 |
) |
Diluted net income (loss) attributable to MCBC per share: |
$ |
0.37 |
|
|
$ |
(6.32 |
) |
|
$ |
4.62 |
|
|
$ |
(4.38 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares - basic |
|
217.2 |
|
|
|
216.9 |
|
|
|
217.1 |
|
|
|
216.8 |
|
Weighted average shares - diluted |
|
217.6 |
|
|
|
216.9 |
|
|
|
217.6 |
|
|
|
216.8 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends per share |
$ |
0.34 |
|
|
$ |
— |
|
|
$ |
0.68 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
BALANCE SHEETS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets |
|||||||
(In millions, except par value) (Unaudited) |
As of |
||||||
|
December 31, 2021 |
|
December 31, 2020 |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
637.4 |
|
|
$ |
770.1 |
|
Accounts receivable, net |
|
678.9 |
|
|
|
558.0 |
|
Other receivables, net |
|
200.5 |
|
|
|
129.1 |
|
Inventories, net |
|
804.7 |
|
|
|
664.3 |
|
Other current assets, net |
|
457.2 |
|
|
|
297.3 |
|
Total current assets |
|
2,778.7 |
|
|
|
2,418.8 |
|
Properties, net |
|
4,192.4 |
|
|
|
4,250.3 |
|
Goodwill |
|
6,152.6 |
|
|
|
6,151.0 |
|
Other intangibles, net |
|
13,286.8 |
|
|
|
13,556.1 |
|
Other assets |
|
1,208.5 |
|
|
|
954.9 |
|
Total assets |
$ |
27,619.0 |
|
|
$ |
27,331.1 |
|
Liabilities and equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable and other current liabilities |
$ |
3,107.3 |
|
|
$ |
2,889.5 |
|
Current portion of long-term debt and short-term borrowings |
|
514.9 |
|
|
|
1,020.1 |
|
Total current liabilities |
|
3,622.2 |
|
|
|
3,909.6 |
|
Long-term debt |
|
6,647.2 |
|
|
|
7,208.2 |
|
Pension and postretirement benefits |
|
654.4 |
|
|
|
763.2 |
|
Deferred tax liabilities |
|
2,704.6 |
|
|
|
2,381.6 |
|
Other liabilities |
|
326.5 |
|
|
|
447.2 |
|
Total liabilities |
|
13,954.9 |
|
|
|
14,709.8 |
|
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: 210.1 shares and 209.8 shares, respectively) |
|
2.1 |
|
|
|
2.1 |
|
Class A exchangeable shares, no par value (issued and outstanding: 2.7 shares and 2.7 shares, respectively) |
|
102.2 |
|
|
|
102.3 |
|
Class B exchangeable shares, no par value (issued and outstanding: 11.1 shares and 11.1 shares, respectively) |
|
417.8 |
|
|
|
417.8 |
|
Paid-in capital |
|
6,970.9 |
|
|
|
6,937.8 |
|
Retained earnings |
|
7,401.5 |
|
|
|
6,544.2 |
|
Accumulated other comprehensive income (loss) |
|
(1,006.0 |
) |
|
|
(1,167.8 |
) |
Class B common stock held in treasury at cost (9.5 shares and 9.5 shares, respectively) |
|
(471.4 |
) |
|
|
(471.4 |
) |
Total Molson Coors Beverage Company stockholders' equity |
|
13,417.1 |
|
|
|
12,365.0 |
|
Noncontrolling interests |
|
247.0 |
|
|
|
256.3 |
|
Total equity |
|
13,664.1 |
|
|
|
12,621.3 |
|
Total liabilities and equity |
$ |
27,619.0 |
|
|
$ |
27,331.1 |
|
|
|
|
|
CASH FLOW STATEMENTS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows |
|||||||
(In millions) (Unaudited) |
For the years ended |
||||||
|
December 31, 2021 |
|
December 31, 2020 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) including noncontrolling interests |
$ |
1,008.5 |
|
|
$ |
(945.7 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
786.1 |
|
|
|
922.0 |
|
Amortization of debt issuance costs and discounts |
|
6.7 |
|
|
|
8.1 |
|
Share-based compensation |
|
32.1 |
|
|
|
24.2 |
|
(Gain) loss on sale or impairment of properties and other assets, net |
|
9.1 |
|
|
|
1,553.5 |
|
Unrealized (gain) loss on foreign currency fluctuations and derivative instruments, net |
|
(233.8 |
) |
|
|
(111.4 |
) |
Income tax (benefit) expense |
|
230.5 |
|
|
|
301.8 |
|
Income tax (paid) received |
|
(227.0 |
) |
|
|
(127.0 |
) |
Interest expense, excluding amortization of debt issuance costs and discounts |
|
253.6 |
|
|
|
266.0 |
|
Interest paid |
|
(256.2 |
) |
|
|
(271.9 |
) |
Change in current assets and liabilities and other |
|
(36.1 |
) |
|
|
76.1 |
|
Net cash provided by (used in) operating activities |
|
1,573.5 |
|
|
|
1,695.7 |
|
Cash flows from investing activities: |
|
|
|
||||
Additions to properties |
|
(522.6 |
) |
|
|
(574.8 |
) |
Proceeds from sales of properties and other assets |
|
26.0 |
|
|
|
158.8 |
|
Other |
|
(13.3 |
) |
|
|
2.4 |
|
Net cash provided by (used in) investing activities |
|
(509.9 |
) |
|
|
(413.6 |
) |
Cash flows from financing activities: |
|
|
|
||||
Exercise of stock options under equity compensation plans |
|
4.6 |
|
|
|
4.1 |
|
Dividends paid |
|
(147.8 |
) |
|
|
(125.3 |
) |
Payments on debt and borrowings |
|
(1,006.6 |
) |
|
|
(918.9 |
) |
Proceeds on debt and borrowings |
|
— |
|
|
|
1.5 |
|
Net proceeds from (payments on) revolving credit facilities and commercial paper |
|
1.4 |
|
|
|
— |
|
Other |
|
(23.8 |
) |
|
|
(31.8 |
) |
Net cash provided by (used in) financing activities |
|
(1,172.2 |
) |
|
|
(1,070.4 |
) |
Cash and cash equivalents: |
|
|
|
||||
Net increase (decrease) in cash and cash equivalents |
|
(108.6 |
) |
|
|
211.7 |
|
Effect of foreign exchange rate changes on cash and cash equivalents |
|
(24.1 |
) |
|
|
35.0 |
|
Balance at beginning of year |
|
770.1 |
|
|
|
523.4 |
|
Balance at end of year |
$ |
637.4 |
|
|
$ |
770.1 |
|
|
|
|
|
SUMMARIZED SEGMENT RESULTS (volume and $ in millions) (Unaudited)
Americas |
Q4 2021 |
Q4 2020 |
Reported |
FX |
Constant |
|
Full year |
Full Year |
Reported |
FX |
Constant |
|||||||||||||||
Financial volume(1)(2) |
|
16.144 |
|
|
15.577 |
|
3.6 |
|
|
|
|
|
63.737 |
|
|
65.010 |
|
(2.0 |
) |
|
|
|||||
Net sales(2) |
$ |
2,145.9 |
|
$ |
1,994.8 |
|
7.6 |
|
$ |
9.9 |
|
7.1 |
|
|
$ |
8,485.0 |
|
$ |
8,237.0 |
|
3.0 |
|
$ |
83.5 |
2.0 |
|
COGS(2) |
|
(1,352.8 |
) |
|
(1,244.3 |
) |
(8.7 |
) |
|
|
|
|
(5,262.2 |
) |
|
(4,983.1 |
) |
(5.6 |
) |
|
|
|||||
MG&A |
|
(528.9 |
) |
|
(521.1 |
) |
(1.5 |
) |
|
|
|
|
(2,021.7 |
) |
|
(1,960.2 |
) |
(3.1 |
) |
|
|
|||||
Income (loss) before income taxes |
$ |
258.4 |
|
$ |
192.0 |
|
34.6 |
|
$ |
(0.9 |
) |
35.1 |
|
|
$ |
1,176.5 |
|
$ |
1,080.5 |
|
8.9 |
|
$ |
2.1 |
8.7 |
|
Underlying EBITDA |
$ |
401.9 |
|
$ |
388.3 |
|
3.5 |
|
$ |
0.3 |
|
3.4 |
|
|
$ |
1,795.7 |
|
$ |
1,970.3 |
|
(8.9 |
) |
$ |
11.7 |
(9.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
EMEA&APAC |
Q4 2021 |
Q4 2020 |
Reported |
FX |
Constant |
|
Full year |
Full Year |
Reported |
FX |
Constant |
|||||||||||||||
Financial volume(1)(2) |
|
4.998 |
|
|
4.117 |
|
21.4 |
|
|
|
|
|
20.315 |
|
|
19.560 |
|
3.9 |
|
|
|
|||||
Net sales(2) |
$ |
473.9 |
|
$ |
303.1 |
|
56.4 |
|
$ |
(0.3 |
) |
56.5 |
|
|
$ |
1,802.3 |
|
$ |
1,431.9 |
|
25.9 |
|
$ |
89.8 |
19.6 |
|
COGS(2) |
|
(331.0 |
) |
|
(241.3 |
) |
(37.2 |
) |
|
|
|
|
(1,208.3 |
) |
|
(1,025.1 |
) |
(17.9 |
) |
|
|
|||||
MG&A |
|
(136.2 |
) |
|
(127.2 |
) |
(7.1 |
) |
|
|
|
|
(532.8 |
) |
|
(476.8 |
) |
(11.7 |
) |
|
|
|||||
Income (loss) before income taxes |
$ |
(16.8 |
) |
$ |
(1,556.8 |
) |
98.9 |
|
$ |
1.2 |
|
98.8 |
|
|
$ |
32.9 |
|
$ |
(1,603.7 |
) |
N/M |
|
$ |
0.3 |
N/M |
|
Underlying EBITDA |
$ |
48.5 |
|
$ |
(20.8 |
) |
N/M |
|
$ |
— |
|
N/M |
|
|
$ |
237.7 |
|
$ |
126.5 |
|
87.9 |
|
$ |
9.4 |
80.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Unallocated & Eliminations |
Q4 2021 |
Q4 2020 |
Reported |
FX |
Constant |
|
Full year |
Full Year |
Reported |
FX |
Constant |
|||||||||||||||
Financial volume(1) |
|
(0.005 |
) |
|
(0.018 |
) |
72.2 |
|
|
|
|
|
(0.024 |
) |
|
(0.091 |
) |
73.6 |
|
|
|
|||||
Net Sales |
$ |
(0.6 |
) |
$ |
(3.6 |
) |
83.3 |
|
|
|
|
$ |
(7.6 |
) |
$ |
(14.9 |
) |
49.0 |
|
|
|
|||||
COGS(2) |
|
(78.1 |
) |
|
86.5 |
|
N/M |
|
|
|
|
|
244.2 |
|
|
122.5 |
|
99.3 |
|
|
|
|||||
Income (loss) before income taxes |
$ |
(132.1 |
) |
$ |
27.5 |
|
N/M |
|
$ |
(1.4 |
) |
N/M |
|
|
$ |
29.6 |
|
$ |
(120.7 |
) |
N/M |
|
$ |
2.1 |
N/M |
|
Underlying EBITDA |
$ |
6.9 |
|
$ |
7.6 |
|
(9.2 |
) |
$ |
(0.3 |
) |
(5.3 |
) |
|
$ |
44.3 |
|
$ |
35.3 |
|
25.5 |
|
$ |
0.1 |
25.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Consolidated |
Q4 2021 |
Q4 2020 |
Reported |
FX |
Constant |
|
Full year |
Full Year |
Reported |
FX |
Constant |
|||||||||||||||
Financial volume(1) |
|
21.137 |
|
|
19.676 |
|
7.4 |
|
|
|
|
|
84.028 |
|
|
84.479 |
|
(0.5 |
) |
|
|
|||||
Net sales |
$ |
2,619.2 |
|
$ |
2,294.3 |
|
14.2 |
|
$ |
9.6 |
|
13.7 |
|
|
$ |
10,279.7 |
|
$ |
9,654.0 |
|
6.5 |
|
$ |
173.3 |
4.7 |
|
COGS |
|
(1,761.9 |
) |
|
(1,399.1 |
) |
(25.9 |
) |
|
|
|
|
(6,226.3 |
) |
|
(5,885.7 |
) |
(5.8 |
) |
|
|
|||||
MG&A |
|
(665.1 |
) |
|
(648.2 |
) |
(2.6 |
) |
|
|
|
|
(2,554.5 |
) |
|
(2,437.0 |
) |
(4.8 |
) |
|
|
|||||
Income (loss) before income taxes |
$ |
109.5 |
|
$ |
(1,337.3 |
) |
N/M |
|
$ |
(1.1 |
) |
N/M |
|
|
$ |
1,239.0 |
|
$ |
(643.9 |
) |
N/M |
|
$ |
4.5 |
N/M |
|
Underlying EBITDA |
$ |
457.3 |
|
$ |
375.1 |
|
21.9 |
|
$ |
— |
|
21.9 |
|
|
$ |
2,077.7 |
|
$ |
2,132.1 |
|
(2.6 |
) |
$ |
21.2 |
(3.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable. | ||
N/M = Not meaningful |
||
(1) |
Financial volume in hectoliters for the Americas and EMEA&APAC excludes royalty volume of 0.736 million hectoliters and 0.469 million hectoliters for the three months ended December 31, 2021, respectively, and excludes royalty volume of 0.665 million hectoliters and 0.450 million hectoliters for three months ended December 31, 2020, respectively. Financial volume in hectoliters for the Americas and EMEA&APAC excludes royalty volume of 2.507 million hectoliters and 1.968 million hectoliters for the year ended December 31, 2021, respectively, and excludes royalty volume of 2.052 million hectoliters and 1.731 million hectoliters for the year ended December 31, 2020, respectively. |
|
(2) |
Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals. The unrealized changes in fair value on our commodity swaps, which are economic hedges, are recorded as cost of goods sold 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. |
WORLDWIDE BRAND AND FINANCIAL VOLUME
(In millions of hectoliters) (Unaudited) |
For the three months ended |
|
For the years ended |
||||||||||||||
|
December 31, |
|
December 31, |
|
Change |
|
December 31, |
|
December 31, |
|
Change |
||||||
Financial Volume |
21.137 |
|
|
19.676 |
|
|
7.4 |
% |
|
84.028 |
|
|
84.479 |
|
|
(0.5 |
)% |
Contract brewing and wholesaler volume |
(1.686 |
) |
|
(1.453 |
) |
|
16.0 |
% |
|
(6.730 |
) |
|
(6.355 |
) |
|
5.9 |
% |
Royalty volume |
1.205 |
|
|
1.115 |
|
|
8.1 |
% |
|
4.475 |
|
|
3.783 |
|
|
18.3 |
% |
Sales-To-Wholesaler to Sales-To-Retail adjustment |
(0.903 |
) |
|
(0.022 |
) |
|
N/M |
|
|
(1.100 |
) |
|
0.126 |
|
|
N/M |
|
Total Worldwide Brand Volume |
19.753 |
|
|
19.316 |
|
|
2.3 |
% |
|
80.673 |
|
|
82.033 |
|
|
(1.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Worldwide Brand Volume by Segment |
|
|
|
|
|
|
|
|
|
|
|
||||||
Americas |
14.590 |
|
|
14.855 |
|
|
(1.8 |
)% |
|
59.334 |
|
|
61.313 |
|
|
(3.2 |
)% |
EMEA&APAC |
5.163 |
|
|
4.461 |
|
|
15.7 |
% |
|
21.339 |
|
|
20.720 |
|
|
3.0 |
% |
Total |
19.753 |
|
|
19.316 |
|
|
2.3 |
% |
|
80.673 |
|
|
82.033 |
|
|
(1.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
N/M = Not meaningful |
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 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 wholesaler 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. 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.
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 present constant currency, "underlying COGS per hectoliter" (COGS adjusted for non-GAAP items divided by reported financial volume), "underlying MG&A," "underlying net income," "underlying income per diluted share," "underlying effective tax rate" and "underlying free cash flow" as well as net sales and income (loss) before income taxes in constant currency, among others, which are non-GAAP measures and should be viewed as supplements to (not substitutes for) our results of operations presented under U.S. GAAP. We also present underlying earnings before interest, taxes, depreciation, and amortization ("underlying EBITDA") as a non-GAAP measure. Our management uses underlying income, underlying income per diluted share, underlying EBITDA and underlying effective tax rate as measures of operating performance, as well as underlying free cash flow in the measure of cash generated from core operations, 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 that underlying income, underlying income per diluted share, underlying EBITDA and underlying effective tax rate performance are used by, and are useful to, investors and other users of our financial statements in evaluating our operating performance, as well as underlying free cash flow in evaluating our generation of cash from core operations, because they provide an additional tool to evaluate our performance without regard to special and non-core items, the related tax effects and certain discrete tax items, which can vary substantially from company to company depending upon accounting methods and book value of assets and capital structure. In addition to the reasons discussed 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-core items. In addition, constant-currency results exclude the impact of foreign currency movements. For discussion and analysis of our liquidity, see the consolidated statements of cash flows and the Liquidity and Capital Resources section of our Management’s Discussion and Analysis of Financial Condition and Results of Operations in our latest Form 10-K and 10-Q filings with the SEC.
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. These adjustments consist of special items from our U.S. GAAP financial statements as well as other non-core items, such as integration related costs, unrealized mark-to-market gains and losses, and gains and losses on sales of non-operating assets, the related tax effects and certain discrete tax 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 and involve significant management judgment.
Our guidance for underlying depreciation and amortization, underlying effective tax rate and underlying income (loss) before income taxes are also non-GAAP financial measures that exclude or otherwise have been adjusted for special items from our U.S. GAAP financial statements as well as other non-core items, such as integration related costs, unrealized mark-to-market gains and losses, and gains and losses on sales of non-operating assets, the related tax effects and certain discrete tax 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 and involve significant management judgment. We are unable to reconcile the above described guidance measures to their nearest U.S. GAAP measures without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of the special and other non-core items. By their very nature, special and other non-core 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.
Constant currency is a non-GAAP measure utilized by Molson Coors management 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. This information is non-GAAP and should be viewed as a supplement to (not a substitute for) our reported results of operations under U.S. GAAP. We present all percentage changes for net sales, underlying COGS, underlying MG&A and underlying EBITDA 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 non-operating transactional foreign currency impacts, reported within the Other Income/Expense, net line item, from our current period results.
RECONCILIATION TO NEAREST U.S. GAAP MEASURES
Underlying EBITDA |
||||||||||
($ in millions) (Unaudited) |
For the three months ended |
|||||||||
|
December 31, |
|
December 31, |
|
Change |
|||||
U.S. GAAP: Net income (loss) attributable to MCBC |
$ |
80.0 |
|
|
$ |
(1,369.8 |
) |
|
N/M |
|
Add: Net income (loss) attributable to noncontrolling interests |
|
2.4 |
|
|
|
(4.1 |
) |
|
N/M |
|
U.S. GAAP: Net income (loss) |
|
82.4 |
|
|
|
(1,373.9 |
) |
|
N/M |
|
Add: Interest expense (income), net |
|
61.8 |
|
|
|
64.8 |
|
|
(4.6 |
)% |
Add: Income tax expense (benefit) |
|
27.1 |
|
|
|
36.6 |
|
|
(26.0 |
)% |
Add: Depreciation and amortization |
|
181.9 |
|
|
|
207.1 |
|
|
(12.2 |
)% |
Adjustments included in underlying income(1) |
|
106.0 |
|
|
|
1,445.2 |
|
|
(92.7 |
)% |
Adjustments to arrive at underlying EBITDA(2) |
|
(1.9 |
) |
|
|
(4.7 |
) |
|
59.6 |
% |
Underlying EBITDA |
$ |
457.3 |
|
|
$ |
375.1 |
|
|
21.9 |
% |
|
|
|
|
|
|
($ in millions) (Unaudited) |
For the years ended |
|||||||||
|
December 31, |
|
December 31, |
|
Change |
|||||
U.S. GAAP: Net income (loss) attributable to MCBC |
$ |
1,005.7 |
|
|
$ |
(949.0 |
) |
|
N/M |
|
Add: Net income (loss) attributable to noncontrolling interests |
|
2.8 |
|
|
|
3.3 |
|
|
(15.2 |
)% |
U.S. GAAP: Net income (loss) |
|
1,008.5 |
|
|
|
(945.7 |
) |
|
N/M |
|
Add: Interest expense (income), net |
|
258.3 |
|
|
|
271.3 |
|
|
(4.8 |
)% |
Add: Income tax expense (benefit) |
|
230.5 |
|
|
|
301.8 |
|
|
(23.6 |
)% |
Add: Depreciation and amortization |
|
786.1 |
|
|
|
922.0 |
|
|
(14.7 |
)% |
Adjustments included in underlying income(1) |
|
(189.5 |
) |
|
|
1,695.0 |
|
|
N/M |
|
Adjustments to arrive at underlying EBITDA(2) |
|
(16.2 |
) |
|
|
(112.3 |
) |
|
85.6 |
% |
Underlying EBITDA |
$ |
2,077.7 |
|
|
$ |
2,132.1 |
|
|
(2.6 |
)% |
|
|
|
|
|
|
N/M = Not meaningful |
||
(1) |
Includes adjustments to non-GAAP underlying income related to special and non-core items. See Reconciliations to Nearest U.S. GAAP Measures by Line Item table for detailed adjustments. |
|
(2) |
Represents adjustments to remove amounts related to interest, depreciation and amortization included in the adjustments to non-GAAP underlying income above, as these items are added back as adjustments to net income (loss) attributable to MCBC. |
Net Debt to Underlying EBITDA Ratio | |||
(In millions except net debt to underlying EBITDA ratio) (Unaudited) |
As of |
||
|
|
December 31, 2021 |
|
U.S. GAAP: |
Current portion of long-term debt and short-term borrowings |
$ |
514.9 |
Add: |
Long-term debt |
|
6,647.2 |
Less: |
Cash and cash equivalents |
|
637.4 |
|
Net debt |
$ |
6,524.7 |
Non-GAAP: |
Underlying EBITDA |
$ |
2,077.7 |
|
Net debt to underlying EBITDA ratio |
|
3.14 |
|
|
|
Underlying Free Cash Flow |
||||||||
(In millions) (Unaudited) |
For the years ended |
|||||||
|
|
December 31, 2021 |
|
December 31, 2020 |
||||
U.S. GAAP: |
Net Cash Provided by (Used In) Operating Activities |
$ |
1,573.5 |
|
|
$ |
1,695.7 |
|
Less: |
Additions to properties(1) |
|
(522.6 |
) |
|
|
(574.8 |
) |
Add/Less: |
Cash impact of special items(2) |
|
28.7 |
|
|
|
89.4 |
|
Add/Less: |
Cash impact of other non-core items(3) |
|
3.2 |
|
|
|
56.0 |
|
Non-GAAP: |
Underlying Free Cash Flow |
$ |
1,082.8 |
|
|
$ |
1,266.3 |
|
|
|
|
|
|
(1) |
Included in net cash provided by (used in) investing activities. |
|
(2) |
Included in net cash provided by (used in) operating activities and primarily reflects costs paid for restructuring activities for the years ended December 31, 2021 and December 31, 2020. |
|
(3) |
Included in net cash provided by (used in) operating activities and primarily reflects costs paid for the cybersecurity incident, net of insurance recoveries, in the Americas segment for the year ended December 31, 2021 and costs paid for on-premise keg sales returns and "thank you" pay for certain essential Americas segment brewery employees for the year ended December 31, 2020. |
GAAP to Underlying Effective Tax Rate Reconciliation |
|||||||||||
(Unaudited) |
For the three months ended |
For the years ended |
|||||||||
|
December 31, 2021 |
|
December 31, 2020 |
|
December 31, 2021 |
|
December 31, 2020 |
||||
GAAP Effective Tax Rate |
24.8 |
% |
|
(2.7 |
%) |
|
18.6 |
% |
|
(46.9 |
%) |
Add/(less):(1) |
|
|
|
|
|
|
|
||||
Tax effect of special items, net and other non-core items |
(2.4 |
%) |
|
26.0 |
% |
|
(2.3 |
%) |
|
43.0 |
% |
Discrete and other non-core tax items(2) |
(5.3 |
%) |
|
0.2 |
% |
|
(2.5 |
%) |
|
22.6 |
% |
Underlying (Non-GAAP) Effective Tax Rate |
17.1 |
% |
|
23.5 |
% |
|
13.8 |
% |
|
18.7 |
% |
|
|
|
|
|
|
|
|
(1) |
Adjustments related to the tax effect of special items, net and non-core items as well as certain discrete tax items excluded from our underlying effective tax rate. Discrete and other non-core tax items include significant tax audit and prior year reserve adjustments, the impact of significant tax legislation and tax rate change and significant non-recurring and period specific tax items. |
|
(2) |
The decrease in discrete and other non-core tax expense for the full year is primarily due to approximately $135 million of discrete tax expense related to the enactment of the final hybrid regulations by the U.S. Department of Treasury recognized in the second quarter of 2020. The decrease is further due to the recognition of $18 million of tax expense recorded in the second quarter of 2021 related to the remeasurement of our deferred tax liabilities as a result of a corporate income tax rate increase in the U.K. from 19% to 25%. |
|
|
The decrease in discrete and other non-core tax expense for the fourth quarter is primarily due to higher other tax expenses in the fourth quarter of 2021 as compared to the fourth quarter of 2020. |
Reconciliation by Line Item | |||||||||||||||||||||
(In millions, except per share data) (Unaudited) |
For the three months ended December 31, 2021 |
||||||||||||||||||||
|
Net sales |
Cost of |
Marketing, |
Operating |
Other |
Net income |
Net income |
||||||||||||||
Reported (U.S. GAAP) |
$ |
2,619.2 |
$ |
(1,761.9 |
) |
$ |
(665.1 |
) |
$ |
165.0 |
$ |
(1.2 |
) |
$ |
80.0 |
|
$ |
0.37 |
|
||
Adjustments to arrive at underlying: |
|
|
|
|
|
|
|
||||||||||||||
Special items, net |
|
|
|
|
|
|
|
||||||||||||||
Employee-related charges |
|
— |
|
|
— |
|
|
— |
|
|
2.5 |
|
|
— |
|
|
2.5 |
|
|
0.01 |
|
Impairments or asset abandonment charges |
|
— |
|
|
— |
|
|
— |
|
|
21.6 |
|
|
— |
|
|
21.6 |
|
|
0.10 |
|
Termination fees and other (gains) losses |
|
— |
|
|
— |
|
|
— |
|
|
3.1 |
|
|
— |
|
|
3.1 |
|
|
0.01 |
|
Non-Core items |
|
|
|
|
|
|
|
||||||||||||||
Unrealized mark-to-market (gains) losses |
|
— |
|
|
78.7 |
|
|
— |
|
|
78.7 |
|
|
— |
|
|
78.7 |
|
|
0.36 |
|
Other non-core items |
|
— |
|
|
— |
|
|
0.1 |
|
|
0.1 |
|
|
— |
|
|
0.1 |
|
|
— |
|
Total Special and Other Non-Core items |
$ |
— |
|
$ |
78.7 |
|
$ |
0.1 |
|
$ |
106.0 |
|
$ |
— |
|
$ |
106.0 |
|
$ |
0.49 |
|
Tax effects on special and other non-core items |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(15.6 |
) |
|
(0.07 |
) |
Discrete tax items |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
5.8 |
|
|
0.03 |
|
Underlying (Non-GAAP) |
$ |
2,619.2 |
|
$ |
(1,683.2 |
) |
$ |
(665.0 |
) |
$ |
271.0 |
|
$ |
(1.2 |
) |
$ |
176.2 |
|
$ |
0.81 |
|
|
|
|
|
|
|
|
|
(In millions, except per share data) (Unaudited) |
For the year ended December 31, 2021 |
||||||||||||||||||||
|
Net sales |
Cost of |
Marketing, |
Operating |
Other |
Net income |
Net income |
||||||||||||||
Reported (U.S. GAAP) |
$ |
10,279.7 |
$ |
(6,226.3 |
) |
$ |
(2,554.5 |
) |
$ |
1,454.4 |
|
$ |
(3.5 |
) |
$ |
1,005.7 |
|
$ |
4.62 |
|
|
Adjustments to arrive at underlying: |
|
|
|
|
|
|
|
||||||||||||||
Special items, net |
|
|
|
|
|
|
|
||||||||||||||
Employee-related charges |
|
— |
|
|
— |
|
|
— |
|
|
11.7 |
|
|
— |
|
|
11.7 |
|
|
0.05 |
|
Impairments or asset abandonment charges |
|
— |
|
|
— |
|
|
— |
|
|
38.7 |
|
|
— |
|
|
38.7 |
|
|
0.18 |
|
Termination fees and other (gains) losses |
|
— |
|
|
— |
|
|
— |
|
|
(5.9 |
) |
|
— |
|
|
(5.9 |
) |
|
(0.03 |
) |
Non-Core items |
|
|
|
|
|
|
|
||||||||||||||
Unrealized mark-to-market (gains) losses |
|
— |
|
|
(236.6 |
) |
|
— |
|
|
(236.6 |
) |
|
— |
|
|
(236.6 |
) |
|
(1.09 |
) |
Other non-core items |
|
1.9 |
|
|
— |
|
|
2.2 |
|
|
4.1 |
|
|
(1.5 |
) |
|
2.6 |
|
|
0.01 |
|
Total Special and Other Non-Core items |
$ |
1.9 |
|
$ |
(236.6 |
) |
$ |
2.2 |
|
$ |
(188.0 |
) |
$ |
(1.5 |
) |
$ |
(189.5 |
) |
|
(0.87 |
) |
Tax effect on special and other non-core items |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
54.5 |
|
|
0.25 |
|
Discrete tax Items |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
31.4 |
|
|
0.14 |
|
Underlying (Non-GAAP) |
$ |
10,281.6 |
|
$ |
(6,462.9 |
) |
$ |
(2,552.3 |
) |
$ |
1,266.4 |
|
$ |
(5.0 |
) |
$ |
902.1 |
|
$ |
4.15 |
|
|
|
|
|
|
|
|
|
Reconciliation to Underlying EBITDA by Segment |
|||||||||||||||
(In millions) (Unaudited) |
For the three months ended December 31, 2021 |
||||||||||||||
|
Americas |
|
EMEA&APAC |
|
Unallocated |
|
Consolidated |
||||||||
Income (loss) before income taxes |
$ |
258.4 |
|
|
$ |
(16.8 |
) |
|
$ |
(132.1 |
) |
|
$ |
109.5 |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||
Net sales |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Cost of goods sold(2) |
|
— |
|
|
|
— |
|
|
|
78.7 |
|
|
|
78.7 |
|
Marketing, general & administrative |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Special items, net(3) |
|
5.8 |
|
|
|
21.4 |
|
|
|
— |
|
|
|
27.2 |
|
Other income/expense non-core items |
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Total Special and other Non-Core items |
$ |
5.9 |
|
|
$ |
21.4 |
|
|
$ |
78.7 |
|
|
$ |
106.0 |
|
Underlying income (loss) before income taxes |
$ |
264.3 |
|
|
$ |
4.6 |
|
|
$ |
(53.4 |
) |
|
$ |
215.5 |
|
Interest expense (income), net |
|
0.4 |
|
|
|
1.1 |
|
|
|
60.3 |
|
|
|
61.8 |
|
Depreciation and amortization |
|
138.0 |
|
|
|
43.9 |
|
|
|
— |
|
|
|
181.9 |
|
Adjustments to arrive at underlying EBITDA(4) |
|
(0.8 |
) |
|
|
(1.1 |
) |
|
|
— |
|
|
|
(1.9 |
) |
Underlying EBITDA |
$ |
401.9 |
|
|
$ |
48.5 |
|
|
$ |
6.9 |
|
|
$ |
457.3 |
|
|
|
|
|
|
|
|
|
(In millions) (Unaudited) |
For the year ended December 31, 2021 |
||||||||||||||
|
Americas |
|
EMEA&APAC |
|
Unallocated |
|
Consolidated |
||||||||
Income (loss) before income taxes |
$ |
1,176.5 |
|
|
$ |
32.9 |
|
|
$ |
29.6 |
|
|
$ |
1,239.0 |
|
Add/(less): |
|
|
|
|
|
|
|
||||||||
Net sales(1) |
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
1.9 |
|
Cost of goods sold(2) |
|
— |
|
|
|
— |
|
|
|
(236.6 |
) |
|
|
(236.6 |
) |
Marketing, general & administrative |
|
2.2 |
|
|
|
— |
|
|
|
— |
|
|
|
2.2 |
|
Special items, net(3) |
|
25.2 |
|
|
|
19.3 |
|
|
|
— |
|
|
|
44.5 |
|
Other income/expense non-core items |
|
(1.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1.5 |
) |
Total Special and other Non-Core items |
$ |
25.9 |
|
|
$ |
21.2 |
|
|
$ |
(236.6 |
) |
|
$ |
(189.5 |
) |
Underlying income (loss) before income taxes |
$ |
1,202.4 |
|
|
$ |
54.1 |
|
|
$ |
(207.0 |
) |
|
$ |
1,049.5 |
|
Interest expense (income), net |
|
1.4 |
|
|
|
5.6 |
|
|
|
251.3 |
|
|
|
258.3 |
|
Depreciation and amortization |
|
601.4 |
|
|
|
184.7 |
|
|
|
— |
|
|
|
786.1 |
|
Adjustments to arrive at underlying EBITDA(4) |
|
(9.5 |
) |
|
|
(6.7 |
) |
|
|
— |
|
|
|
(16.2 |
) |
Underlying EBITDA |
$ |
1,795.7 |
|
|
$ |
237.7 |
|
|
$ |
44.3 |
|
|
$ |
2,077.7 |
|
|
|
|
|
|
|
|
|
(1) |
Includes keg sales returns adjustments related to the on-premise impacts resulting from the coronavirus pandemic. |
|
(2) |
The unrealized changes in fair value on our commodity swaps, which are economic hedges, are recorded as cost of goods sold 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) |
See Part I—Item 1. Financial Statements, Note 7, "Special Items" of the Form 10-K for a detailed discussion of special items. |
|
(4) |
Represents adjustments to remove amounts related to interest, depreciation and amortization included in the adjustments to underlying income above, as these items are added back as adjustments to net income attributable to MCBC. |
Investor Relations
Greg Tierney, (414) 931-3303
Traci Mangini, (415) 308-0151
News Media
Marty Maloney, (312) 496-5669